The Pointerra Ltd (ASX: 3DP) share price is under pressure on Monday.
At the time of writing, the 3D geospatial data technology company’s shares are down 5.5% to 50.5 cents.
Why is the Pointerra share price falling?
Investors have been selling down the Pointerra share price after broad market weakness offset the release of a positive announcement.
According to the release, the company has won a number of contracts during September. This includes a $1.55 million contract with Florida Power & Light across four projects.
In addition, the company has signed contracts with Pacific Gas & Electric and Gridvision worth ~$0.25 million each.
What are the contracts covering?
The deal with Florida Power & Light includes a vegetation growth predictive analytics project. This will study and model the likely impact on powerline infrastructure of growth in vegetation adjacent to the powerline network over a 16-month period.
Using multiple aerial captures with multiple sensors over the project period, Pointerra3D will model change (delta) in vegetation growth and use the delta combined with species detection analytics to predict vegetation growth.
Management notes that the expected outcome for Florida Power & Light is better scheduling of vegetation management activities, which is a significant part of the utility’s ongoing network asset management operations.
In addition, other projects with Florida Power & Light include weather related network change detection and the demonstration of the integration of IkeGPS Group Ltd’s (ASX: IKE) highly regarded Poleforeman utility pole engineering software into Pointerra3D.
The contract with Pacific Gas & Electric is similar to the main Florida Power & Light contract. It is a vegetation management analytics project.
Whereas, finally, the contract with Gridvision is for mine powerline data capture and analytics campaigns for the power infrastructure network of a global tier-one miner’s Australian operations.
Management believes the endorsement of the Pointerra3D solution by electrical engineering teams could accelerate adoption and spend by its mining sector customers as other business units are exposed to the technology and how it can solve their specific challenges.