Smart technology developer TZ Limited (ASX: TZL) has secured more than $1 million in new contracts in Australia for its cloud-based locking technology.
The company today revealed it has received the “first of many” purchase orders for the supply of electronics and software services for multinational energy company Chevron Corporation.
The services relate to 2,800 smart lockers for Chevron’s new high-rise headquarters in Perth, Western Australia.
The contract comes off the back of TZ successfully being awarded the tender to supply hardware and software solutions to support 2,000 smart storage lockers at the global headquarters of biotech company CSL in Melbourne, Victoria.
Data centre sales double
TZ also continues to be a valued supplier to Australia’s data centre industry and said it has recorded a “doubling” of its data centre sales in the last 12 months.
NextDC (ASX: NXT) and Macquarie Telecom (ASX: MAQ) have placed orders for the supply of TZ’s DC Cabinet electronic locking and access controls for their respective S3 and IC3 data centres in Sydney, New South Wales. NextDC’s S3 site is still under development and practical completion of phase one is expected in the second half of 2022.
Contracts inked in new CEO’s first month
Today’s news demonstrates a good start for new chief executive officer Mario Vecchio, who was only appointed a month ago.
“It’s been a busy first 30 days, but I am excited to develop new client relationships as well as be continued valued partners for our existing clients,” he said.
“The company is certainly benefitting from changes to the workplace post-Covid.”
Mr Vecchio has a successful track record in building tech-based companies with previous roles including being the founder of Progility Technologies, which hit $150 million in revenue before being eventually sold to a private firm. He also held positions at APJC Bigswitch and Aryaka Networks where he was responsible for growing revenue in Asia significantly.
Transition from sales to SaaS
Mr Vecchio sat on the board of TZ in 2018 and recently told Small Caps he was drawn back to the company by “unfinished business”.
“I had seen the potential of this business – it’s a great technology success story… It was frustrating to sit on the board and not understand why it’s not growing and what the issues are,” he said, noting that 63% of the company’s business is overseas with big customers including Microsoft, Apple and Google.
Mr Vecchio’s plans for the company include changing the business model to achieve recurring revenue through ongoing subscription services rather than one-off sales of its software.
“I’ve got a plan for migration of existing customers for perpetual licences into a SaaS (Software-as-a-Service) model and new customers going forward, so that is a huge change for this business,” he said.