The Vection Technologies Ltd (ASX: VR1) share price rallied 50% after the company announced a partnership agreement. The Vection share price reached an intraday high of 5.4 cents before being sold down to its current price of 4.6 cents, at the time of writing.
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Details on the Vection partnership agreement
Earlier today, Vection announced that the company has completed an Original Equipment Manufacturer (OEM) partnership agreement with integrated hardware solutions firm, JMC Group.
JMC is a global provider of integrated technology solutions and is an end-to-end partner with Dell Technologies Inc. The partnership with JMC will see Vection integrate its end-to-end software solutions to the global sales program at Dell.
Vection's announcement noted that the partnership and integration between hardware and software for virtual reality is key to the development of automation. The company's management noted that the partnership will play a critical role in bringing together disruptive software and hardware technology.
In addition, the partnership agreement will see the company collaborate with JMC on marketing activities for Vection's software product suite.
What does Vection do?
Vection is an Australian-based software company that focuses on real-time technologies for industrial organisations.
The company boasts a software suite including its virtual reality platform, FrameS, its real-time 3D platform, Mindesk, and augmented reality software called Trainer Creator. According to Vection, the company's solutions are aimed at helping industries transition into the fourth industrial revolution known as Industry 4.0. Industry 4.0 involves the automation of traditional manufacturing and industrial processes.
Despite a challenging trading environment induced by the COVID-19 pandemic, Vection recently released a solid quarter of cash receipts. The company reported cash receipts for the June 2020 quarter of $577,000 and also reported $2.8 million in cash receipts for FY20.
According to Vection, the company's focus over the next six months is to expand its software-as-a-service (SaaS) solutions to the healthcare, education and automotive sectors. Vection also has an ambitious goal of achieving 50% growth in annual recurring revenue (ARR) by June 2022.
In addition to the company's recent partnership with JMC, Vection also boasts OEM distribution with other notable companies including; Logitech, Hewlett-Packard, Intel and Volvo.
About the Vection share price
As mentioned, at the time of writing the Vection share price had been sold down from its intraday high and is now trading 27.8% higher for the day at a 4.6 cents. It is 130% higher in year-to-date trading.
