Quantify Technology Holdings quick to demonstrate revenue pipeline
Despite only recently commencing trading on the ASX (March 8), Quantify Technology (ASX: QFY) has been quick to articulate its strategy and announce material revenue earning contracts. This sets it apart from many peers in the Internet of Things space where some companies find it difficult to even define their revenue model, let alone provide any confidence regarding near-term income visibility.
Consequently, today’s announcement that the group’s products have been specified for two projects in Western Australia and one in New South Wales, as well as having a significant involvement in a major South Australian property development venture should provide further share price momentum.
Of course this is an early stage play and any share price momentum is speculative, so investors should seek professional financial advice if considering this stock for their portfolio.
As a backdrop, QFY’s technology platform encompasses a range of products that provide clients with a distribution platform for the future evolution of Internet of Things technologies. These include retrofittable switches and power outlets designed to provide real-time evaluation of environmental and risk factors for building occupants.
The group assists in managing services and utilities in order to optimise efficiencies, effectively creating ‘Truly Intelligent Buildings’. Included within each device is autonomous compute power allowing the delivery of advanced applications without the dependency on “Cloud Computing” applications or local gateways or servers.
Q Device to be used in three new property projects
QFY advised today that the Q Device has been included in the building specifications for three projects, two in Western Australia and one in New South Wales.
The two Western Australian projects are a medical and dental library and the Crest Apartment project in Burswood. The New South Wales project relates to the Lindfield Apartments in Sydney.
The Q Device has been specified for use in the electrical engineering plans for the projects. While firm contracts are yet to be negotiated, the specification of the devices represents an endorsement from both building contractors and electrical consultants.
QFY products to be exclusively used in $220 million Wallaroo Shores project
Further to this development, QFY announced that construction work on the Wallaroo Shores project is expected to start in May. The group had previously signed an agreement with developer Copper Coast Investments for the sale and installation of its products for approximately 650 dwellings.
Wallaroo Shores is an 18.5 hectare development valued at $220 million and will feature a four-star resort, a residential component, a lifestyle village, and a commercial and retail sector.
Copper Coast has agreed to exclusively promote and procure the purchase and installation of QFY’s products in buildings erected at Wallaroo Shores by incorporating a requirement that the owners use QFY’s products for dwellings erected as part of the project.
Commenting on the group’s outlook, Managing Director, Mark Lapins said “We continue to receive strong interest from property developers across a number of major Australian cities to supply our products into commercial and large residential projects”.