CCP Technologies boosts IT development revenue, subscription sales exceed $800,000
CCP Technologies’ profitable Bangalore-based contract IT development team has boosted revenue by 35% since February.
CCP Technologies (ASX: CT1) has boosted its contract IT development revenue by 35% since February, while its subscription sales pipeline has now exceeded $800,000.
Excluding reseller sales, this pipeline only includes direct sales, with a further $288,000 at contract stage in the pipeline for 1,300 smart monitoring tags.
The internet of things (IoT) company sells smart monitoring tags that comprise sensors and when placed in temperature-controlled environments, the tags generate data that is pushed to a cloud-based software platform.
Users can then manage and monitor their produce and other temperature sensitive items using this system.
Data derived from CCP’s smart tags assists users with compliance, consumer safety, energy efficiency and can help reduce waste.
CCP’s tags can also be used to track movement, gaseous environments, acidity, and power usage to provide automated, real-time and historical reporting.
Within the current sales pipeline are active trials for one of the world’s largest restaurant chains, a national café group, Victorian hotel and pub group and several large private hospitals.
Meanwhile, CCP’s contract IT development work is undertaken by its Bangalore-based team, with several new IoT development projects validating the team’s strength.
Additionally, CCP noted the new IoT projects also provided an opportunity to show work completed when bidding on new projects.
“The combined subscription revenue from the sale of tags and contract development activities and also the qualified sales pipeline is providing a line-of-sight to the targeted cash flow break-even and subsequent run-rate profitability on a business-as-usual basis for the company in the second half of the 2019 calendar,” CCP stated.
Business update
In a business update last month, CCP reported it had slashed its monthly costs from $150,000 to $50,000 without negatively impacting revenues or its sales pipeline.
CCP plans to become cash flow neutral within the latter half of this year, with the IT development team now profitable.
In addition to revenue from the IT development team and ongoing smart sensor tag sales, CCP expects to receive cash from entitlement-based government programs and around $460,000-worth of Penta tokens in August.
The news sent CCP’s share price soaring more than 11% to reach $0.01 in early morning trade.