GCIMicrosaic secures €571k order for water monitoring system in Qatar, eyes Gulf states market expansion
Microsaic Systems (MSYS), a developer of microelectronic instruments and analytical solutions, issued a trading update on its recently announced contract to monitor the public water system of Doha, Qatar.
Microsaic confirmed a new purchase order worth €571k to supply equipment for its water monitoring operation in Doha, Qatar. The order was placed by Microsaic's local distributor in Doha, previously served by recently acquired Modern Water, and will support 's Continuous Toxicity Monitoring (CTM) instruments that continually monitor Doha's water supply.
Most of the equipment and consumable items for the CTM instruments will be delivered in 2024, with invoicing expected to start by the end of June. The goods being supplied include ' proprietary MicroTox reagents that were acquired from Modern Water.
In light of growing demand for its CTM instruments, Microsaic said it has commissioned GX Group, its outsourced manufacturer in Wales, to modify and update the electronics that control the instruments. This is expected to streamline the manufacturing process for equipment sales expected to begin later this year.
On the R&D front, Microsaic continues to pursue its PFAS detector testing programme aimed at US equipment manufacturers and distributors. The programme aims to establish a very high-resolution toxicity testing system for PFAS (forever chemicals) in the water supply.
Bob Moore, Acting Executive Chairman, commenting: "We are delighted to have signed a new purchase order with our local distributor to supply consumables and associated equipment for our project in Qatar. This demonstrates the determination of the Company to deliver on our reset objectives and develop much wider analytical capabilities and solutions. We intend to build on this by scaling up supply capabilities for our newly acquired wider range of instruments and their consumable kits based on proven technology. Increasing the installed base of equipment over time will support the growth of recurring income streams from consumables."
View from Vox
Microsaic's acquisition of Modern Water is beginning to bear fruit as it secures a large €571k order for its CTM instruments used to monitor Doha's water supply. The contract was signed with 's Doha distributor, previously served by Modern Water, and should become a significant source recurring revenue as ongoing operation of the CTMs requires continual supply of essential consumables such as MicroTox reagents and tubing kits.
Microsaic is mainly targeting the Gulf states with its water monitoring solutions, building on its successful pilot project in Qatar. is targeting the market with its newly acquired Modern Water continuous monitoring technology, as well as its in-house developed mass spectrometer 4500MiD instrument. As countries in the region transition to piped distribution, there is rapidly growing demand for accurate monitoring the safety of potable (incl. desalinated) water.
This is where 's technology shines, explaining rising orders in the region. Microsaic is already seeing strong demand for its CTM instruments, 4500MiD spectrometer, and MicroTox/consumables, with a growing pipeline developing and a contractor in Wales commissioned to speed up manufacture of the equipment and broaden the supply chain, which should increase long-term profitability of the instruments.
's 4500MiD instrument is also being marketed in the US where there is growing demand for PFAS ("forever chemicals") detection and monitoring. Mass spectrometry is the only technology that can monitor PFAS to the extremely low concentration levels announced by the US EPA on April 10, 2024, which is in the range of 4-10 parts per trillion. Microsaic's PFAS detector is ideally positioned to meet demand based on the the EPA spec. The unit is still in development, but promises to disrupt the US market for PFAS detection as it is highly compact, low-cost, and energy efficient.
A complete PFAS system is undergoing stage 1 testing with a large OEM in the US, estimated to complete in Q2 2024. Investors should also expect an update regarding the planned evaluation of Microsaic's bioprocessing solution, ProteinID, by a European OEM ahead of field trials expected later this year.
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