NetComm recently won a major contract with by SP AusNet, through Ericsson, to supply the 3G communications component for the Victorian Government’s mandatory statewide rollout of smart meters.
The initial order will represent revenue of $12.5 million to NetComm Wireless. It is likely the capital raising will be used to fund the manufacture and further development of the products needed to fulfil the contract. Netcomm has said that the “vast majority” of this revenue will be earned by the third quarter of the next financial year – early 2015 – but most of the necessary expenditure will come much earlier than that.
Singapore owned SP AusNet will manage the replacement of existing mechanical meters with digital smart meters across northern and eastern Victoria. The 3G communications card designed by NetComm was purpose built to interoperate with SP AusNet’s preferred smart meter provider, Landis+Gyr (and Australian company acquired by Toshiba in 2011).
“NetComm Wireless has targeted the smart meter sector as a key area of growth, and this marks our first major smart meter win,´ said David Stewart, NetComm Wireless CEO. ”We are currently engaged in a wireless smart meter trial in North America and see excellent prospects for deployment to other smart grid projects across the globe.
The trading halt will last until an announcement being made to the market, or at the latest the opening of trading next Monday 3 June 2013.