PERTH software developer Functional Software is set to take on European markets with the signing of a three-year distribution agreement with UK firm XuiS.
Functional Software managing director Alan Main said the company was also in the final stages of signing an agreement with a distributor in the US and had signed a memorandum of understanding with a Korean distributor.
Under the terms of the UK deal XuiS will distribute Functional’s sentinal3G monitoring software to its existing customer channel.
Mr Main said the deal would prove to be lucrative and could lead to other markets.
“I would be disappointed if this agreement doesn’t generate $1 million in revenue over the three years,” he said.
“XuiS has customers in Holland, Switzerland, France and Germany in addition to the UK.
“They are owned by a US company, which has given us leverage into the US market that led to these recent talks with the US distributor.”
Mr Main said the move into European and other markets followed several years of research and development.
“We had been searching for European and US partners when we decided that the product was good enough and robust enough to enter those markets,” he said.
Mr Main said sentinal3G had already proved its worth in the Australian market.
“The product is solid. We have a good Australian user base that is happy with the product and helped us knock the rough edges off it,” he said.
“The Australian market is a good mirror of the international market but the international market is where the growth comes from.”
Mr Main said there was growth in the software market for monitoring tools and Functional expected to win more contracts involving its products.
“There are no dominant players in the target market we’re in,” he said.
“As a small technology company we can punch well above our weight because the technology is so good.”
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