Tech: MGM Wireless renews contract with the WA government in $1.3m deal
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Ed-tech platform MGM Wireless (ASX:MWR) has won a contract with the WA Department of Education.
The deal will see MGM’s student-absence messaging software rolled out across all WA government schools.
It followed a tender put out by the WA government for school-safety software, focused on management of student absences and emergency messaging services.
The contract will deliver revenues to MGM of $1.3m over a two-year term, with an option for the government to renew for another two years.
The new agreement will replace an existing deal in place with the WA government since 2014.
Amid a broader selloff on the Small Ords index, shares in MGM climbed 4.5 per cent in morning trade to 18.5c. However, the stock remains well below 2019 levels where it traced above 40c for most of the year.
CEO Mark Fortunatow said MGM’s products were “specifically designed for school and Education Department use. Our latest versions incorporate advanced AI functionality that is particularly effective in engaging parents and delivering significant productivity savings to school staff”.
MGM also runs a software-as-a-service (SaaS) revenue model through its AllMyTribe smartphone app, that provides a multi-channel platform for parents to stay in constant contact with their children.
The company provided a trading update on January 29 where it said recurring app revenue totalled $500,000 in H1 2020, including record monthly revenues of $109,000 in December.
However, between January 28 and February 3 MGM shares fell from 28.5c to 19.5c.
Tech minnow AssetOwl (ASX:AO1) — which has a market cap of $1.5m — ticked higher after the company announced it entered an agreement to licence its Inspector360 platform to property inspection company PCR & Inspection Services.
AssetOwl will receive a fee “per report generated using Inspector360. The fees charged are set depending on the nature of the report and also the level of functionality that can be accessed.” Specific commercial amounts weren’t disclosed. Shares in AssetOwl were up 20 per cent at 0.6c.