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SenSen Networks takes big step in global expansion with US$5 million software contract

Published: 01:20 03 Feb 2020 GMT

SenSen Networks Ltd - SenSen Networks takes big step in global expansion with US$5 million software contract
The SenSen Gaming team and Angel are jointly planning a worldwide marketing strategy

SenSen Networks Ltd (ASX:SNS) is progressing plans to expand globally with the execution of distribution and placement agreements with Angel Japan Co Ltd during December a major milestone.

The deal will see Angel lead worldwide distribution of SenGAME 3.0 - SenSen’s proprietary software for casino gaming tables.

This software processes video images in real time to determine the number of players at the table and hands dealt per hour, as well as the number, type, and value of all bets placed.

Angel sells high-quality casino equipment including playing cards, chips and other gaming devices to casinos worldwide.

Distribution agreement

Under the distribution agreement, Angel is appointed exclusive distributor of SenGAME 3.0 and in return SenSen receives a fixed monthly per-table price during the initial period of the agreement.

The total minimum payment to SenSen is US$5 million over five years with significant scope for expansion under a SaaS business model.

This agreement took effect on January 1, 2020 and can be extended a further three years after the initial term.

Placement agreement

As part of the agreement with Angel, SenSen completed around a A$3.3 million private placement to Angel for more than 22 million shares, equal to about 4.99% of the total post-placement issued shares of SenSen.

The placement was conducted at 15 cents per share, about a 68% premium to the closing price of SenSen shares on December 4, 2019.

SenSen is using the placement funds to further develop SenGAME 3.0 and for general working capital.

Smart cities Chicago

In the December quarter, Chicago Parking Meters (CPM) selected SenSen’s Smart City Solution to trial a sign detection and audit solution to digitise metered parking spaces within Chicago CBD and related applications.

The company will also provide, on a trial basis, a combination of products and solutions including its leading cloud-hosted back office software.

SenSen is also collecting on-street data about parking signs in and around metered parking spaces to facilitate digitization of CPM’s assets.

Incident detection cameras

The company also partnered with a major global technology, defence and engineering group based in Singapore to offer a new product line using SenSen AI software AI-FARM which reduces false alarms from incident detection cameras on highways.

The solution is expected to generate an additional recurring revenue stream for SenSen with a four-year agreement starting in January 2020.

Singapore international airport

Sensen secured a successful multi-year extension to support and maintain software at Singapore’s Changi international airport with partner Beaqon Systems.

The software detects abandoned baggage, illegally parked vehicles and illegal U-turns made by taxis and other commercial vehicles.

Gemineye software

The company also completed several successful trials for its Gemineye offering globally, with trials held in Qatar, Dubai, Canada, USA, Singapore, Australia and New Zealand. Commercial negotiations are underway for production roll-outs in several of these locations.

Automated parking enforcement

In Australia, SenSen secured a three-year deal to supply automated parking enforcement solutions to Geelong City Council with distribution partner Duncan Solutions.

The contract initially covers the city’s purchase of two SenFORCE mobile parking enforcement units with SenSen earning revenue for the systems, software and commissioning of the unit as well as annual recurring revenues and fees for the software licence, maintenance and support services.

Corporate finances

The company received cash inflows of A$1.744 million in the quarter, including contracted customer order cash receipts of A$770,000 (A$1.33 million invoiced, A$601,000 receivable at December 31, 2019) as well as a research and development grant of A$974,000.

The net operating cash outflow was the company’s lowest ever for a quarter at A$384,000.

SenSen’s cash position was around A$4.4 million at December 31, 2019.

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