Could bring better results for FY18

Credit: Dreamstime

Sydney-based networking hardware vendor, NetComm Wireless (ASX:NTC), has secured a large contract with NBN Co that will result in revenues of $66 million.

The contract is for the provision of NetComm Wireless’ network connection device (NCD), a new hardware designed by the vendor that incorporates Gfast, VDSL (very-high-bit-rate digital subscriber line) modem and reverse power feed capability.

The NCD allows monitoring and diagnostics reporting on line performance delivered in households.

The hardware is for use with NetComm Wireless’ distribution point unit (DPU), announced in November 2016.

According to NetComm Wireless, the new deal with NBN Co will represent incremental revenues of $40 million within the 18 months following its launch, planned for the first half of 2018.

The product is to be tested before the commercial launch and NetComm Wireless expects NBN Co to order more devices over time.

“Given our success with NBN Co in respect of their fibre-to-the-curb project, NBN Co was a natural inaugural customer and we are delighted to provide this NCD technology to further enhance the effectiveness of the fibre-to-the-curb rollout,” NetComm Wireless CEO, Ken Sheridan, said.

In November 2016, NetComm Wireless announced the supply of 1-port and 4-port distribution point units (DPUs) designed specifically for the NBN Co’s fibre-to-the-curb (FttC) projects and related services.

The DPUs are to be installed outside premises to connect fibre to a household’s existing copper lines

In February this year, the company said that the first order of the DPU would result in $28 million in revenues, which was expected to be generated between June and August.

The company employs more than 200 people and closed the 2017 financial year with $107.6 million revenue, up 26.3 per cent compared to the previous year.

NetComm Wireless, however, closed the year with a net loss of $1.7 million, as opposed to the previous year’s profit of $2 million.