Astrata Group Inc. (OTCBB: ATTG), provider of information technology products and services, today discussed the recent announcement of a classified $93 million contract in Singapore, expected to generate roughly $20 million in cash as well as fiscal 2007 financials.The deal was made through its wholly owned subsidiary Astrata Singapore Pte Ltd. to manufacture, ship, and service millions of dollars in telematics products over a two-year period. Astrata has completed contracts with the Singapore Police Force, homeland security contracts with the Singapore Civil Defense Force, and other contracts with private corporations bringing a backlog in orders to $117 million.
The company is increasing its focus on homeland security and business-to-business sectors.
“With many competitors in this industry, we have superior product solutions which marry well with the needs of government for homeland security and private corporations for secure and efficient operations,” said Martin Euler, CEO of Astrata.
Euler said in the conference call the size and quantity of recent orders not only confirms, but validates Astrata’s technology.
“We have entered a phase of rapid growth, we’re converting the current backlog to revenue and responding to a number of substantial bid requests,” he said. “We expect Astrata to become a very different company during the current fiscal year.”
Astrata’s telematics and GPS (Global Positioning System) technology are applicable to homeland security, military, intelligence, mining, agriculture, marine, public safety and transportation.
The company reported $3.47 million in revenue for fiscal 2007; gross profit rose 90 percent to $1.6 million from $840,000 in fiscal 2006. Astrata’s operating loss narrowed to $6.62 million, from $7.27 million the prior year.
The company declined to give guidance for the upcoming fiscal year.
Shares of Astrata were up 14 cents, nearly 13 percent, to $1.24 Thursday morning.