Intelligent access control specialist TZ has secured a new contract with the NSW Government, further fuelling the company’s recent growth.

The recently inked deal will see TZ upgrade 3000 of the government’s day lockers to provide the state’s staff with an “agile personal storage solution”.

The retrofitted lockers will also be controlled by TZ’s centralised locker management cloud platform, the company said, with several bespoke features added at the request of the NSW Government.

As well as an upfront value for the TZ hardware used in the upgrade of $1.34 million, the two parties have entered into a five-year software-as-a-service (SaaS) contract for the platform.

TZ chief executive Mario Vecchio said it is encouraging to see the ways businesses are adapting their offices after the pandemic.

“This is creating new opportunities for our cloud-based solutions, which are designed to support the new workplace,” he said.

“This latest deal with the NSW Government is proof of that.”

Cash flows lift after strong March quarter

TZ’s latest quarterly report showed “significantly improved” cash receipts of over $8 million, resulting in $0.4 million net cash generated from operating activities for the quarter.

The company expects this strong revenue and cash flow momentum to carry through into the last quarter of the financial year.

Year-to-date unaudited revenues now sit at $13.2 million, up 11% on the prior corresponding period.

The company’s monthly recurring revenue base in this quarter stood at $235,000.

Journey to the cloud

During the latest quarter, the company also made progress on its plan to migrate existing customers onto its comprehensive set of TZ cloud subscription services, noting these solutions have so far been met with “great uptake”.

TZ also intends to grow its sales reach by offering the cloud services platform for resale through third-party, software-only providers, and is currently in negotiations with a number of these businesses.

“We expect the first of these partners to sign up with us within Q4,” the company reported, with the plan to roll out these new partnerships globally over the next 12 months.

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Sources

• TZ Limited ASX Announcement, TZ transaction with NSW Government and a General Business Update 
• TZ Limited ASX Announcement,  Business Review for the Quarter