Starcom PLC (LON:STAR) have signed a three year supply and support agreement with US shipping serviced provider CubeMonk Inc.
The wireless solutions and technology firm said that the agreement would allow the supply and support of Kylos Air technology units.
The Kylos Air technology will be used as part of CubeMonk’s tracking service for air containers.
Starcom expressed that they had been working with CubeMonk over the last year to implement Kylos Air technology for shipping solutions.
The firm noted that the trial had been successfully completed, and had produced pleasing results – adding that it had seen “very positive feedback from the end users in the trial.”
Avi Hartmann, CEO of Starcom, commented:
“Following the successful trial, we are proud to have reached this important milestone in our relationship with Cubemonk in the USA. This contract, along with others under active negotiation, demonstrates the significant opportunity for Starcom to expand its OEM strategic partnerships with companies that will benefit from our proven technology to enhance their respective businesses.”
The Kylos Air units are connected through Starcom’s online control software, and will monitor key container parameters including location, internal temperature and shocks experienced.
The units are automatically shut off during the take off and turn on immediately after the landing of the aircraft in order to comply with aviation regulation – which shows their practical use.
Starcom’s rising profit expectations
At the start of the month, Starcom reinstated their strong expectations following a strong period of trading.
The firm that it expects to swing to an annual profit following strong revenue gains tied in with stable gross margins.
Adjusted earnings before interest, tax, depreciation and amortization are expected to be around $300,000, swinging from a loss of $8,000 the year prior. Gross margin remained stable at 41% compared to 40% for 2018.
The wireless solutions for remote tracking and monitoring of assets and people firm said that it strengthened it product offering and created its own opportunity for accelerated growth.
Looking forward, the firm said that in 2020 it will be looking to delivery up to $2 million worth of Lokies, which will give a great chance for the firm to expand its horizons.
Looking ahead, Starcom said it will build on its collaborations with companies such as Zero Motorcycles Inc, Israel Chemicals Ltd and WIMC Solutions Inc.
Shares in Starcom trade at 1p (+4.39%). 19/2/20 11:57BST.