Secures $1.38 Million Revenue in Online Software Contracts
Sydney, May 22, 2014 AEST (ABN Newswire) - Mobile/online payments platform and logistics software provider SmartTrans Holding Limited (
ASX:SMA) ('SmartTrans') today announced that it has secured two new contracts and one contract expansion for its mobile and online logistics software business, strengthening the company's recurring and predictable revenue base.
These contracts deliver SmartTrans cumulative revenue of $1.38 million over a three-year term. Approximately $130,000 was received during the negotiation phase with another $545,000 expected to be realised in the first 12 months mainly through implementation and set up fees.
The contracts, which are all for three-year terms, include:
- Implementation by Fairfax Media of SmartTrans' proprietary mobile and online logistics system to ensure efficient delivery and monitoring of the group's print publications.
- Implementation of the same technology by leading wine/FMCG warehousing and logistics company, BAM Wine.
- A renewal of an existing agreement with Australian pharmaceutical wholesaler and supplier Sigma Pharmaceuticals.
SmartTrans' logistics system utilises the same proprietary software that underpins the mobile and online billing and payment platform that the company is successfully rolling out in China. SmartTrans has agreements in place there with China Mobile, CM Pay, Union Pay and Alipay.
SmartTrans' Managing Director Bryan Carr stated: "These are important contracts for SmartTrans as they provide the company with stable and predictable revenues over an extended period. This in turn gives us the flexibility to pursue expansion opportunities for our mobile and online payment and billing platform in China, which remains our primary focus and future growth driver."
"We also see scope to introduce our logistics software to the China market through our existing and future partnerships - we see this as a complementary offering to the billing and payments platform."
Mr Carr added that third parties continue to show strong interest in joint ventures and licensing agreements for the company's mobile and online billings platform as a means of gaining access to the Chinese market and that such opportunities are being examined by SmartTrans' management.
"There are a number of opportunities for growth and expansion in China that we are currently assessing. Naturally we will continue to keep shareholders informed about our progress here over the coming months."
To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/77218-ASX-SMA-22-05-14.pdf
About SmartTrans Holdings Limited
SmartTrans Holdings Limited (ASX:SMA) is a leading Australian technology and software provider that has developed a mobile and online billing and payment platform for the China market The company has agreements in place with China Mobile, China Unicorn, China Telecom CMPay, UnionPay and Alipay. With the growing use of the smartphone as a billing device in China, the company is experiencing significant uptake of its technology in that market. SmartTrans has also developed cutting-edge proprietary logistics software which is used by some of Australia's leading blue-chip organisations who have long term contracts in place with the company. SmartTrans is assessing growth opportunities for its logistic offering in China to complement its mobile and online payments platform.
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