MICT Inc. (NASDAQ: MICT) shares soared on Tuesday after the company announced that it entered a pilot trial with a global “telematics” provider that will lead to the first substantial order for the firm’s SmartCam in the North American market.
Management noted that it expects to ship and book revenues for this sizable order toward the end of the year, and it is hopeful that this sale to a major global telematics player will lead to even more substantial orders in 2021. Again, management said that it believed greatly in this product and anticipated more conversions of pilot trials into orders later in 2020 and into 2021.
It’s worth pointing out that the company is currently piloting SmartCam with numerous other customers. However, some of these pilot trials were interrupted due to COVID-19, but now they are back on track.
Micronet’s product portfolio comprises an increasing number of technologies like SmartCam that integrate advanced artificial intelligence (AI) and software-as-a-service (SaaS) with camera technology that is designed to improve driver safety. Ultimately, this transitions its business into a software-driven recurring revenue model.
Some further background: SmartCam integrates driver-facing cameras, road-facing cameras, vehicle mechanical and operating data, vehicle location and a powerful telematics on-board computer, enabling local processing of AI and image processing algorithms. Micronet’s SmartCam provides a versatile, advanced and affordable mobile computing platform for a variety of fleet management and video analytics solutions.
MICT CEO Darren Mercer added that this first major sale justifies its recent investment into Micronet, and he believes this investment has enabled Micronet to service these kinds of orders
MICT stock traded up about 44% to $5.05 on Tuesday, in a 52-week range of $0.38 to $8.45. The company currently has a market cap of $77.8 million.