MTI Wireless Edge’s subsidiary signs contract renewal
(MWE ) said Mottech Water Solutions, its subsidiary in the wireless irrigation control solutions sector, has signed a renewal of an existing service agreement worth $0.65m.
The technology company, which is focused on comprehensive communication and radio frequency solutions across multiple sectors, said today’s contract renewal is with one of the five largest municipalities in Israel as well as one of Mottech's largest service customers.
The Group explained that Mottech’s services will be provided over the next two years and includes the options to increase its term of the services for up to a further two years.
Mottech's General Manager Dudi Shani, said, "The initial term of this renewal agreement is for two years, but the municipality has the option to extend it for an additional two years.
Our experience shows that this customer usually provides us with more work during the service contract and in the past several years, additional work totaled c.$0.3m per annum.
Shares in MTI Wireless Edge have increased by over 70% in value since the beginning of November 2020 to open 1.85% higher this morning at 82.5p following the announcement.
As such, we consider it likely that this will be a four-year renewal agreement with a total value of US$2.5m, with the potential for increases as the agreement includes price adjustments."
Commenting on its services, the Vice President of Landscape and Special Areas at the municipality said, "We have been a user of Mottech's wireless water management solutions for over 20 years now, as they have consistently delivered an efficient and effective service.
He stated that since 2004, the client has tripled the area of the plant life and vegetation, which today covers over 2,000 acres of city landscapes. He said that over the same period, it was able to grow the wireless monitored and irrigated area from 30% of the landscape to over 95%, resulting in a reduction of the water consumption per cubic meter by two thirds.
He added that, “This is critical to the City budget, saving millions of NIS per year, as the climate requires irrigation on 75% of the days of the year to maintain the City greens."
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