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X2M Connect (ASX:X2M) secures $1.13m contract in South Korea

ASX News, Technology
ASX:X2M      MCAP $12.53M
26 August 2022 10:46 (AEST)

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X2M Connect (X2M) has secured a new $1.13 million water meter monitoring contract in South Korea.

X2M’s newest customer brings its total number of enterprise and government clients across the X2M group to 51, with the number of South Korean municipalities utilising the X2M internet of things platform to 27.

The contract is for water monitoring and control for the city of Yeosu. Through the new deal, the company will deploy its platform and server equipment in the city’s data centre, monitoring 4280 households.

X2M’s technology connects devices like water, gas and electricity meters and other utility sensors to the internet, enabling data exchange and the remote control of these devices. The company then generates revenue from the sale of hardware and monthly subscription fees under software-as-a service arrangements.

The deployment is to be completed within 12 months of the date of signing the contract.

The total addressable market of Yeosu City is approximately 42,000 households, equating to the potential for around $4.5 million of revenue in the future if X2M secures contracts to monitor each household.

“We are pleased to add another South Korean municipality to our customer base and this contract contributes to our strong start to FY23,” X2M CEO Mohan Jesudason said.

“We continue to execute our strategy of securing customers with large addressable markets that will provide the base for future subscription revenues.”

X2M Connect shares were up 1.19 per cent to trade at 8.5 cents as of 10:44 am AEST.

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