ASX-listed Connected IO is on the brink of tying up and toasting its largest contract to date after a leading US-based cyber security firm completed prototype trials and delivered a flying pass mark for its wireless “internet of things” routers. The company said it will now enter a three-year-deal to supply the cloud-based, online card data security business with $6.9million worth of its high-tech products.
ASX-listed Connected IO said in a market update this week, it had received an initial payment of $235,000 from a US-based, cyber security firm after prototype tests had validated its category 1 “internet of things”, wireless routers to trigger the largest deal in the company’s history.
The cyber security company can not be named under the terms of a confidentiality agreement but was established almost 30-years-ago and develops cloud-based payment card data security solutions for large US and international franchises.
Connected IO said of its new customer, “It offers a managed security suite that includes the hardware and software for network security, secured data access and a framework for creating policies and procedures. Its products are used in grocery and convenience stores, restaurants, retail facilities, hotels and kiosks. The company was established in the US almost 30-years ago.”
Both companies will now proceed to complete a formal contract which follows a Letter of Intent entered into six days ago for the supply of customised category 1 wireless routers over the next three years.
In the market update, Connected IO said; “The cyber security company has advised CIO in writing that when the contract is executed it expects to purchase $6.9m worth of units over a three-year period, representing the company’s largest contract to date.”
“The parties will continue to negotiate separately the ability of CIO to provide managed services software to the cyber security company. This could represent a further revenue stream recurring in nature with greater profit margins.”
Connected IO CEO Yakov Temov added, “It is pleasing to have formal sign off of the trials so quickly and move toward the contract phase of the LOI. Being a long-term client, CIO are looking forward to developing the relationship into a significant and long-standing association.”
Connected IO has already delivered 25 prototypes to the cyber security firm and will now supply another 350 units within the next 30-days.
The company’s wireless modem-like devices enable an operator to control or monitor everyday things via the internet. Connected IO says there will be 50 billion devices connected to the internet by 2020, leaving no shortage of potential customers for its high-tech products.