The Netlinkz Ltd (ASX: NET) share price is on the move today after the company announced the details of a new contract signed with Pinnacle (Shanghai) Information Consultation Ltd.
After trading as much as 5% higher today, NetLinkz shares are now edging 1.67% lower at the time of writing.
What does NetLinkz do?
NetLinkz provides cloud network solutions and is currently transforming to a licensing model around the world to reduce its cost base.
The company is also the creator of the Virtual Invisible Network, a global network technology that allows organisations to quickly connect devices, sites and staff over the internet through a unique solution that is generally invisible.
NetLinkz hasn't had a great run on the ASX since the middle of last year. After reaching a 52-week high of $0.30 in July, NetLinkz shares have plummetted 80% to be trading at $0.059 at the time of writing.
Details of new contract
This morning, NetLinkz announced that Beijing iLinkAll Science and Technology Co. (iLinkAll) has signed an agreement to provide software to Pinnacle Shanghai to sell to its customers. iLinkAll is majority-owned by NetLinkz and provides Virtual Secure Network (VSN) software.
Prior to this, NetLinkz went into a trading halt on Tuesday morning this week pending today's release.
Pinnacle Shanghai provides information technology services in various fields such as web technologies. Its customers include global names like Morgan Stanley, Nomura and Aon Insurance.
NetLinkz noted that the one-year contract agreement will initially generate revenues for iLinkAll of $225,000 with majority of the contract to be paid upfront.
Under the terms of this new agreement, NetLinkz notes that iLinkAll will provide development and technical services along with its software to Pinnacle Shanghai.
This new move is part of iLinkAll's strategy to provide network solutions for large scale projects. This includes its recent initiative to improve water supply and sanitation services in selected areas of Deyang Municipality of the Sichuan Province.
In addition to the Pinnacle contract, iLinkAll has signed a contract with another customer, Shanghai M-Soft Information Technology Co. Ltd., to distribute and sell its VSN and VSN Lite products.
NetLinkz added that M-Soft's clients includes China Aerospace Science and Industry Co. Ltd., and Abbott Laboratories, which is located in Shanghai.
Commenting on the update, James Tsiolis, Executive Chairman of NetLinkz said:
"We have now engaged with Pinnacle Access Solutions to provide a total solution for networking remotely and securely, following on from our selection by the Beijing Municipal authorities to assist with the fight against the coronavirus."
