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TZ Limited wins major PAD supply contract with global financial services group

Published: 02:05 11 Apr 2013 BST

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TZ Limited (ASX:TZL) has won a major supply contract from a global financial services corporation for the supply of TZ SMArt Locker Banks at various office locations in the U.S.

The Mark Bouris helmed TZ Limited's intelligent package asset delivery (PAD) solutions feature a system of modular lockers that integrate a network of TZ SMArt™ locking devices and proprietary system software.

A wholly owned US subsidiary, Telezygology, Inc. entered into the master supply agreement with the global financial services corporation which could broaden to worldwide to support the secure delivery of accountable mail and packages.



Initial order

The initial purchase order for SMArt Locker Banks is valued at over US$250,000 with an on-going supply contract.

This resulted from a successful pilot of TZ’s technology at one of the customer’s office facilities. This initial order will see SMArt Locker Banks installed for the customer at the end of May.

“This is a major deal with a globally recognised financial services industry leader. It also reinforces the strong value proposition that we have with large corporate customers seeking to manage their accountable mail deliveries” said Keith Schwartz, senior vice-president sales for Telezygology, Inc.

“We have been focusing our efforts on building direct strategic customer accounts and this clearly validates that our sales strategies are yielding positive results.

"While the sales process does require us to work through initial pilot trials and substantiate the cost and efficiency savings that our end-to-end SMArt Locker solution can deliver, I am pleased to say that our pilot programs continue to lead to on-going supply contracts.

"With a number of pilot programs currently underway with other major corporates, I am confident that the Company will see continued sales growth in this sector.”



TZ PAD System overview


Physically, a TZ PAD System consists of a bank of lockers with one of the lockers dedicated to housing the system hardware and power supply.

A typical bank of lockers is comprised of columns, with each column consisting of either six small lockers per column, a mixture of five or six small and medium lockers per column or two large lockers per column.

Each column features a proprietary TZ Locking Raceway that incorporates the required number of TZ SMArt™ locking devices for the number of lockers in each column. TZ PAD Systems are available in a variety of finishes to complement or match the environments in which they are installed.



Software


The TZ PAD System software runs on the Windows 7 operating system and complies with standard Windows principles and methods of operation and is designed to work with only a single bank lockers.

The software is designed for three system users - administrators, end-users/recipients and mail or parcel service agents - and features a wide range of functions.

 

Analysis

Today's contract win for the TZ SMArt Locker Banks PAD system follows this week's agreement struck with Toll Group to trial the TZ A.D.A.M. locker system for consumers. 

PAD Sales were up over 90% for the half year to 30 December 2012 on sustainable sales growth through multi-period supply deals to blue chip customers in the U.S. such as  such as Microsoft, Cisco and GE.

Less well known is that each pilot or trial with a corporate represents significant undertaking by the corporate client and are fully funded programs.

Each can typically represent a sale of $30,000 to $50,000 and requires a corporate customer to commit to infrastructure integration, changes to workflow practices. Each client potentially represent multi-million dollar account and sales potential for TZ.

With continued newsflow and contract wins in the offing for TZ's business units, Proactive Investors estimates that the Mark Bouris helmed TZ Limited has a valuation between $0.16-$0.20.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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