Starcom beefs up revenue with $0.5m cattle monitoring contract

7th Feb 2019 13:07

(Sharecast News) - Starcom entered into a new agreement with Xplosive Solutions which will see Starcom supply Kylos cattle monitoring technology to the South African farm protection outfit.Under the terms of the new agreement, which is for a 36-month period, Xplosive will pay a monthly fee for each Kylos unit to cover the product cost and ongoing SaaS fees, with Starcom expecting to receive approximately $0.5m of revenue over the full length of the agreement.Avi Hartmann, chief executive of Starcom, said: "In an industry worth over $2bn, and with cattle herds containing thousands of heads, cattle theft has become a serious problem in the South African market. Starcom has worked with Xplosive to develop a cost effective and reliable solution to offer security and theft prevention to the South African cattle industry, as well as to speed the process of rounding-up cattle which graze over large tracts of land."In October 2017, the AIM traded company entered into a supply and support agreement with Xplosive to sell Kylos units, though this arrangement was delayed in July 2018 whilst Xplosive developed a collar for the cattle and negotiated with local telecom providers.Consequently, no revenues were generated under this original agreement.Starcom's shares were up 1.69% at 1.50p at 1252 GMT.