RE: Software Radio Technology15 Oct 2012 10:43
[SRT] has commenced the shipping of GLONASS enabled and approved AIS products to its partner, Transas Navigator in Russia. The Company also announces that it has received a further order for $350,000 of GLONASS-enabled Class B products.
Since the announcement of the national AIS mandate in Russia in November 2011, [SRT] has so far received orders totalling $1.6 million for GLONASS AIS products. Since that time, [SRT] has undertaken extensive development work to modify its standard Class A and Class B products to accommodate GLONASS and other required local functionality to secure local Russian approval of the products. This work was completed in September 2012, enabling production to commence and the first shipments of Class A products, worth $250,000, in October.
Simon Tucker, CEO, commented: "Our investments in new technologies, combined with our talented engineering team have enabled us to customise our standard OEM products to meet local Russian requirements in a short timescale. This is another substantial market opportunity which is now open for business for [SRT]
For the six months ended 30 September 2012, the Company expects to report revenue and profit after tax of approximately £3.5 million and £0.1 million respectively, both of which are ahead of internal budget expectations. As at 30 September 2012, the Company had cash balances of approximately £1.5 million, stock and work in progress of approximately £3.5 million and a current forward order book of £3.2 million. The Company has no debt.
During the first six months SRT has continued its planned new product development investment programme. Both the 'Search And Rescue Transponder' (SART) and 'Aids To Navigation' (AtoN) products are nearing completion, with SART expected to commence first deliveries in December and AtoN during the first quarter of 2013. In addition to our core product developments we have undertaken various customer-specific modifications to products, such as the integration of GLONASS into our Class A and Class B for the Russian market and the completion of a number of custom OEM products based on our modules.
SRT now has a customer base of over 70 customers, purchasing a variety of AIS modules and OEM products. Of these we estimate that 40 are addressing the growing non-mandated AIS market where owners of commercial and leisure vessels choose to purchase AIS devices without any regulatory requirement. Sales in the non-mandated market are showing steady growth and we are continuing to work with these customers to ensure that they are promoting a full AIS product line through their sales networks.
During the first half the Identifier entered volume production and since then we have shipped orders of approximately $2 million, with a further $1.8 million scheduled to ship before 31 December 2012 to fulfil a single order from a Canadian-based customer. These Identifiers are destined for Mexico as part of a national project to track all boats operating in Mexican waters. The roll out of these devices on to vessels is expected to commence from November as the mandate takes effect and Identifiers are available on the ground. SRT has been informed that the initial order addresses approximately 20% of the boats affected by this mandate and the balance is expected to be required during 2013 and 2014. Thereafter a significant on-going replacement and renewal market is expected.
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