Vection Technologies Ltd (ASX: VR1) share price surged up by 11% to a high of 16 cents in earlier trade today before retreating slightly. At the time of writing, the shares were trading at 14 cents, up 7.69%.
Let's take a look at the company and why the Vection share price is up today.
What does Vection Technologies do?
The software company has developed a technology called FrameS. It takes previously created models from software such as CAD or others and provides an immersive experience for up to six remote users. Applications include interior design, design review of industrial projects, exhibiting products remotely, and even training.
The company also develops Mindesk, the first native virtual reality interface for Solidworks. This is one of the most widely used mechanical CAD software packages in the world. It is used by more than 6 million users worldwide, primarily for industrial design. The software allows designers to quickly sketch out ideas, experiment with features and dimensions, and produce models and detailed drawings.
Mindesk then allows users and engineers to interact with the design in a virtual world. It is useful for engineers, designers and customers. The applications include industrial design, electronics designs, customer reviews of housing plans and a range of others.
Why is the Vection share price moving?
The company's share price has been moving since the partnership announcement with Nuovamacut. This has the biggest designer community in the Italian territory. Nuovamacut has more than $68 million in annual revenue and 160 employees across 9 offices. In addition, it distributes Solidworks software to 8,600 company clients and 26,000 users. Its diverse client portfolio includes sectors ranging from industrial machinery, engineering and construction to aerospace and education.
The agreement represents an opportunity for Vection to accelerate market share growth for its virtual reality software, Mindesk. It aligns with the company's goal to achieve strong annual recurring revenue growth. Although Vection Technologies advised that the financial impact of the agreement was not determinable, the company did say it anticipated the partnership to be "material for the company".
This comes after a number of additional announcements that underscore the momentum behind the company. For example, it recently announced the global launch of its first Dell Technologies powered Virtual Reality integrated solution for enterprise, VRONE. Another recent announcement focused on the acceptance into the Microsoft Corporation (NASDAQ: MSFT) Hololens 2 program.
Vection Technologies will collaborate with the Autodesk Technology Centers and the Microsoft Mixed Reality team for the integration of the Mindesk software with the Microsoft Hololens 2 device.
The company already provides VR and AR capabilities to clients including Lamborghini, Maserati, Volvo and Philip Morris, servicing luxury brands with virtual showrooms for customers.
