Secure electronic payment company Prism has announced a further R13 million deal with New York Stock Exchange-listed smart card company SchlumbergerSema, bringing its current business with the company to around R53 million.
The latest deal with SchlumbergerSema is for Prism`s aSIMetrix technology, and follows the companies entering a joint venture late last year to manufacture cellular SIM cards using Prism software.
The agreement included the licensing by SchlumbergerSema of various m-commerce and m-payment technologies developed by Prism.
The initial order resulting from the agreement translated into a gross profit to Prism of over R40 million.
"The latest order should generate an additional R13 million-plus gross profit for Prism. More importantly, however, is the fact that this order underscores the success of our technology," says Steven Sidley, Prism`s group marketing director.
Sidley explains that between 20% and 40% of the R13 million gross profit will be realised before Prism`s June year-end results, with the remaining funds expected before December.
Prism announced some months ago that it was in negotiations with another licensee for the same technology, but Sidley says the negotiations are not yet concluded, although Prism hopes to make an announcement regarding a new deal soon.
The firm completed a rationalisation programme early this year, laying off around 40 people, mostly from its local division, in an effort to bring overheads in check. It also completed a rights offer, which boosted its coffers by around R55 million.
Looking forward, Sidley says international markets are picking up nicely for the Johannesburg-based company. "We are very bullish about international markets, but the South African market is also delivering some promising opportunities."
The Prism share price was trading 1c down at 65c at 10.30am today.
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