Ubisense, the AIM-listed provider of real time location intelligence technology, has announced two major contracts to boost the order book before the December year end. In recent HotViews we have expressed concern about the rate of progress to profitability, contract delays and the potential distraction caused by a recent Japanese acquisition, see here and work back. These two contracts, from existing customers and totalling €9.8m, could mean that the New Year will begin with greater momentum and accelerate the company’s move to realise the potential afforded by its technology and the significant market opportunity.
The larger of the two contracts, for €5.3m over four years is from one of the German state land registries, to enable the secure internet distribution of maps and registry information. The other , for €4.5m is from a European telco, for a solution to optimise the design and planning of broadband networks. These activities add to the success in its Smart Factory systems and its Enterprise partnership with Google.
With clearer visibility of the top line going forward, we now look to the company to show progress to an improved bottom line, reversing the gross margin trend of the first half, where it fell from 35% to 29%, continued control of costs and a clear focus on execution.