A leading truck manufacturer in Europe has recently awarded initial orders to Micronet Ltd., a MICT, Inc. (MICT) majority-owned subsidiary, for units of its new SmartHub and SmartTab 8 tablets. The customer who placed the orders is a significant Original Equipment Manufacturer (OEM) which manufactures and sells thousands of trucks worldwide and the orders received by Micronet are the first from that customer.
The company announced the development at the end of last month on Sep 29, 2020 which resulted into a gain of 13.45% on the day bringing stock price to $4.05 from a previous close of $3.57.
The customer initially went through conducting a field trial and decided upon entering into broader commercial framework agreement with Micronet. The initial orders are part of that broader agreement which is likely to be signed in near future. Being first and potentially significant collaboration with a leading OEM providing independent telematics services, Micronet is in believes that timing and quantities of the order will be providing the company with potentially significant revenues.
MICT’s Chief Executive Officer Darren Mercer while commenting on the key development called collaboration of Micronet with such a major OEM exciting. Selling its advanced telematics products directly to OEMs will result in integration of those products into new trucks right at the assembly lines. This will likely be resulting in more number of units sold by the company and will also help establishment of those products as standard on the trucking industry.
The initial orders and likely entering into a broader commercial agreement framework with the new OEM customer are the acknowledgement to the strength of Micronet’s innovative technology and product line. The company is expecting entering into the broader agreement and is expecting delivering the commercial orders under that agreement during the first quarter of the next year.