Quantify’s global industry recognition lies in its sales pipeline of IOT devices
Quantify Technology Holdings (ASX: QFY) provided a promising market update on Wednesday which reflected on accolades its proprietary Q Device and Fabric Extension fascia technologies have recently received in global markets.
Management was buoyed by the numerous enquiries particularly from industries across the technology and construction sectors after showcasing its devices to potential commercial partners in the US market.
While this response probably won’t come as a surprise to investors in Australia who are already aware of the company’s growing revenue pipeline, the fact that it has received recognition from potential end-users in overseas markets is a highly promising development.
Revenue recognition imminent as Quantify outperforms expectations
Given that the company’s technologies are highly scalable and its proprietary technology is securely protected, QFY is in a position where it can substantially ramp up revenues off a relatively fixed cost base, effectively increasing margins with exponential growth in profitability occurring as much of the income drops straight to the bottom line.
Another factor that would be impressing investors is QFY’s success in exceeding the expectations conveyed in its prospectus.
In discussing QFY’s continued outperformance relative to milestones outlined in its prospectus, group founder and Managing Director, Mark Lapins highlighted the fact that this has continued with the company having quickly progressed Fabric Extension fascia to the production development phase.
It should be noted however that QFY still remains an early stage tech play and investors should seek professional financial advice if considering this stock for their portfolio.
Fabric extension fascia attracts strategic partnerships from various industries
It was only in the second quarter of 2017 that QFY demonstrated its Fabric Extension fascia proof of concept to several leading technology companies in the US.
The proof was well received, and discussions are underway to form strategic partnerships that will allow third parties to develop integrations that will work seamlessly with Quantify Technology’s device.
Fabric Extension is achieved by incorporating the radio frequencies and languages that IoT devices speak into Quantify Technology’s Fabric Extension fascias. This allows other vendor IoT solutions to use the always powered, internet-connected hardware that is at the core of Quantify Technology’s platform.
As illustrated in the following graphic, this eliminates the dedicated box for every vendor-gadget that is the standard.
From houses to high-rises, QFY’s end markets are infinite
Importantly, both the Q Device and the Fabric Extension technology have applications from basic residential housing through to heavy industrial buildings and plush high-rise towers.
Consequently, the addressable market has no bounds, and as new technologies are adopted across areas such as home entertainment, utility devices, lighting and security, demand for QFY’s technologies will increase at an ever increasing pace.
The fact that the company’s devices dispense with the need for multiple gateway, servers or cloud-dependent applications (often all three) makes them more attractive both technically and economically as consumers and businesses rely more heavily on technology.
In general, the Internet of Things (IoT) industry offers solutions reliant on gateways, servers, or cloud-dependent applications. QFY’s platform simplifies the process, offering a server-less and gateway-less solution.
In its current iteration, the IoT offers little beyond uncertainty and device-fatigue, with a dedicated gateway required for every product a consumer uses. As a result, the lack of unified solutions restricts scalability and adoption of new IoT offerings, as well as presenting confusion and unnecessary complexity for consumers.
Benefits for consumers and third-party service providers
QFY’s Fabric Extension fascia allows third-party IoT devices to connect directly to the company’s technology platform. This innovative technology simplifies connectivity and integration of all devices in a home or building, significantly increasing product marketability and enabling QFY to partner with other IoT solution vendors and sensor manufacturers.
This platform will provide infrastructure for the burgeoning IoT market, and QFY is evaluating business models and engaging in discussion with various parties to assess opportunities for the monetization of the platform.
With billions of new IoT devices to be released into the market in the coming years, this represents a significant market opportunity.
Quantify continues to be specified in Australian Projects
Quantify Technology’s Q Device continues to receive strong interest from customers and has most recently been included in the electrical specifications for projects in Western Australia and Queensland.
In highlighting the extremely positive response from industry representatives in the US, Lapins said, “The positive feedback we received after the US demonstration of the game-changing Fabric Extension fascia positions us as a driving force in the IoT landscape.”
He also noted that these recent developments potentially increase QFY’s commercial partnership opportunities given that the company’s technologies continues to garner excitement, with its products and solutions being included in a range of projects throughout Australia, as well as receiving widespread interest from overseas potential partners.”
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