Artivision signs landmark deal with Chinese technology giant Daheng
- Deal is the largest signed for Artivision’s security business to date
- S$6 million in revenue guaranteed within the first 18 months, with the potential for an additional S$36 million over the subsequent 24 months
Artivision Technologies Ltd (“Artivision”, “慧视科技有限公司” or the “Group”) is pleased to announce that its subsidiary ArtiSecurity Technologies Pte Ltd (“ArtiSecurity”) has entered into a collaboration agreement with Chinese technology giant Beijing Daheng Innovative Technology Co. Ltd. (“Beijing Daheng” or “大恒”) to exclusively adopt the AVision software for its surveillance hardware applications. At S$42 million, the deal is the largest contract signed for Artivision’s security business to date.
Under the terms of the agreement, ArtiSecurity will receive a minimum guaranteed revenue of S$6 million within the first 18 months, with potential revenue for an additional S$12 million over a subsequent period of 12 months, and S$24 million for a final period of 12 months thereafter. In return, during the term of this agreement, Beijing Daheng will have the exclusive licence to market and distribute AVision to customers in the People’s Republic of China.
Beijing Daheng is a subsidiary of Daheng New Epoch Technology Inc. (“Daheng New Epoch” or “大恒新纪元科技股份有限公司”), a company listed on the Shanghai Securities Exchange with a market capitalisation of more than RMB3.5 billion. Daheng New Epoch is principally engaged in research, development, manufacture and distribution of integrated circuits (ICs), optical devices, optical and thin film components. With operations in Beijing, Shanghai and Zhejiang, Daheng New Epoch handles numerous security projects for the Chinese government due to its ability to effectively integrate technologies to present a complete suite of security applications to its clients.
Beijing Daheng is a recipient of numerous high-level endorsements including the prestigious Grade A qualification for Information Technology System Integration from the Ministry of Industry and Information Technology and highly sought after Security Clearance Certificates for top confidential information technology system integration from the State Secrecy Administration of China. Some of its esteemed customers include The Great People’s Hall, Ministry of Railway, National Power Grid and other state-owned enterprises.
Mr Kenneth Goh (吴之劭), Chief Operating Officer of Artivision said, “This agreement is the result of stringent testing of our technology and software, involving many people and resources on both sides. Our success in securing an agreement with such a prominent player is a clear endorsement of the viability and high quality of our technology. The cash flow from the deal over the next three and half years will contribute positively to our financial performance.”
Dr Ofer Miller, Chief Technology Officer of Artivision added, “AVision is a robust software that offers a high degree of accuracy when detecting, recognising and tracking video objects. Our continued focus on research and development enables us to adapt AVision to meet the changing needs of this industry and our customers.”AVision’s unique ability to accurately process changes in video patterns and perform an entire suite of object and movement detection, recognition and tracking has made it the technology of choice in the international security industry. AVision is used insurveillance applications at customs checkpoints, military facilities, airports,expressways, shopping malls and offices.
The agreement is expected to have a positive impact on the Group’s earnings per share and net tangible assets per share over the duration of the project. However, the impact to the Group’s net tangible assets per share and Group’s earnings per share for the current financial year ending 31 March 2012, is not expected to be significant.
None of the Directors or controlling shareholders of the Company has direct or indirect interest in the above contract. The Directors are also not aware of any substantial shareholders that have any direct or indirect interest in the above contract.Shareholders are advised to exercise caution when dealing with the shares of the company in relation to this announcement. A copy of Beijing Daheng’s press release issued on the Shanghai Securities Exchange today is attached for more information.
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