Well in some ways this is bloody amazing ... and bloody bad! The Sales are nearly 8mil (graph below looks damn imperessive) ... obviously the bad part is the cash burn.. so the question is what are the terms of service.. will all cash come in next quarter... even if we do get say 8 - 10 mil in cash, they are estimating outflows of 8mil next quarter. I think MB may be sweating on these results!
Other points of interest (I am a bit annoyed we are not finding about some of these so called wins!)
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In the last six months the Company has manufactured and shipped around 375 Locker Banks in total to the US, Singapore, Malaysia and Australia. This comprises more than 25,000 Postal Lockers, three (3) times more than that deployed in the previous two years.
US Corporate Locker sales continue to grow strongly at over 170% on the same period last year. We continue to grow within existing accounts as well as into new customer relationships, some driven from Ricoh’s developing opportunity pipeline. Note Ricoh has secured their first Locker sale to a well-known on-line travel brand and several more are anticipated to close this next quarter. Ricoh are aggressively promoting TZ Smart Locker solutions at tradeshows and corporate client open days in key cities including Manhattan, Ohio and Miami and to their established managed services customer base.
Our efforts to penetrate the University sector in the US is also taking solid shape with several tender invitations coming to TZ. These tenders are scheduled to be awarded in the coming month with delivery most likely slated for May or June 2017. Over US$2.2M of business has been quoted in university tender submissions in the last quarter. Positive references on the new Campus software which has been launched at two major universities is building awareness and traction in the sector.
The Australian Day Locker business has also been in deployment mode with systems going into Westpac and KPMG offices in Brisbane, Sydney and Melbourne. Three new and substantial projects are pending contract award and finalization. TZ has submitted pricing on these projects and is anticipating favourable outcomes. This business, if secured, should go a long way to underpin achievement of the ANZ revenue targets for the fiscal year.
TZL Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
