SA device in line for WA schoolsJune 26, 2007 02:15amADELAIDE...

SA device in line for WA schools

June 26, 2007 02:15am

ADELAIDE communications technology company MGM Wireless said yesterday it was on the cusp of winning its biggest single contract and its shares then rose 20 per cent in anticipation of success.

The shares closed 2c higher at 18c after MGM was named preferred tenderer to supply 800 West Australian schools with its truancy alert and communication system.

Executive chairman Mark Fortunatow said the company was likely to be granted a Western Australia Education Department contract three weeks from now to supply its SMS messaging software system which communicate alerts to parents and guardians about students in their care.

While not disclosing the contract price, Mr Fortunatow expected the deal to double the size of the $32.4 million company in the next 18 months.

The company, which competed with international text-message suppliers for the contract, needed to meet certain conditions before the contract would be awarded, he said. "It would not be unrealistic to have 200-300 schools in WA in the next couple of years and it's really within our reach to double the size of the company in 18 months," he said.

The company had taken almost four years to have 300 schools using its software. While the WA contract was by far its biggest deal, Mr Fortunatow said the U.S. market remained its most lucrative target.

"The U.S. is where it's looking extremely good," he said.

Trading in the U.S. as Messageyou Llc, MGM has secured supply contracts to seven schools in Arizona and California since it began selling offering the product in January.

The company was looking to build "in the shortest possible time" its market share in the U.S. which has 124,000 schools.

Its Messageyou SMS product allows schools to notify parents when students are absent from school and has resulted in improved attendance in the Australian schools using it.

Mr Fortunatow said most U.S. school funding was worked out on the number of students in attendance each day rather than enrolments, and this augured well for MGM's product.

The potential WA Government contract would verify MGM Wireless as the leading provider of text-message alert systems in the world and give it a 90 per cent market share in Australia, Mr Fortunatow said.

& a shorter one:

Wireless shares jump

June 25, 2007 03:30pm

SHARES in Adelaide communications company MGM Wireless have jumped 33 per cent over a truancy alert contract.

Shares jumped after it was named preferred tenderer to supply 800 Western Australian schools with its truancy alert and communication system.

Executive chairman Mark Fortunatow said the company was likely to be granted the Western Australia education department contract in three weeks, to supply its SMS messaging software system which communicate alerts to parents and guardians of its students.

While not disclosing the contract price, Mr Fortunatow expected the deal to double the size of the $27 million company in the next 18 months.

Shares were trading 5c higher to 20c in afternoon trade.