Netlinkz (ASX:NET) signs Asian distribution deal with LNS International

• Under a new strategic partnership, LNS International has agreed to distribute Netlinkz’s (NET) products throughout Asian markets
• LNS will provide the system integration skills, local presence, consulting and local industry knowledge, while Netlinkz will provide its technology
• Revenue is expected to come from a mixture of government tenders in the ASEAN region, existing LNS customers and new business
• Netlinkz says it is also expecting to beat its previously announced 2020 guidance of $15.3 million, with an anticipated $17 million in customer receipts
• Shares in Netlinkz were up 1.41 per cent at the close of trading yesterday to 7.2 cents each

Under a new strategic partnership, LNS International has agreed to distribute Netlinkz’s (NET) products throughout Asian markets.

Founded in 2014, LNS is one of the major system integrators in Asia, offering a range of consulting, business development and professional services to a variety of clients.

The partnership forms part of Netlinkz’s global expansion and diversification strategy, and opens the door to additional revenue streams.

“We have definitely hit the ground running with LNS, and it is great to work with a partner covering this key region,” said James Tsiolis, Chairman and CEO of Netlinkz.

“Our expectation is that partnerships such as the existing successful partnership with iSoftStone, and now with LNS, are the kind that will accelerate Netlinkz’s growth,” he added.

LNS will be responsible for providing the system integration skills, local presence, consulting and local industry knowledge, while Netlinkz will provide its cloud-based Virtual Secure Network technology.

Revenue is anticipated to come from a mixture of government tenders in the ASEAN region, existing LNS customers and new business.

“We have already identified a number of clients where our joint value proposition is very relevant,” said John Tan, CEO of LNS International.

“We are targeting to generate [$15 million] of sales for Netlinkz in the first year of the partnership, and expect this to increase over subsequent years,” he concluded.

With the 2020 calendar year coming to a close, Netlinkz said it expects to beat its previously announced guidance of $15.3 million, with approximately $17 million in customer receipts.

Shares in Netlinkz were up 1.41 per cent at the close of trading yesterday to 7.2 cents each.