Netlinkz set to beat 2020 guidance as it strengthens Asian presence with new LNS International partnership

Netlinkz Ltd (ASX:NET) expects to beat its 2020 guidance of $15.3 million, with receipts from customers expected to be approximately $17 million.  The virtual secure network company will update the market on its final results in the next quarterly update. Netlinkz is further buoyed by the signing of a strategic partnership with LNS International for distribution and delivery of total solutions in Asian and Japanese regions.  Another ‘fantastic quarter’ Netlinkz chief executive officer and chairman James Tsiolis said: “We are pleased to announce that the business is on track to close out the year with another fantastic quarter of sales, with the total receipts from customers for calendar year expected to be circa A$17 million. “Further, we are delighted to announce our new relationship with LNS as a core part of our global expansion, and we are very excited by the opportunities we are already working on together. “We have definitely hit the ground running with LNS and it is great to work with a partner covering this key region. “Our expectation is that partnerships such as the existing successful partnership with iSoftStone, and now with LNS, are the kind that will accelerate Netlinkz’s growth.” Number of clients identified LNS International chief executive officer John Tan added: “This is a very strategic partnership for LNS and we have appointed a dedicated team to work with Netlinkz across all our markets and industries. “This adds a new dimension to our existing services, allowing LNS to deliver end to end solutions across multiple sectors. “We have already identified a number of clients where our joint value proposition is very relevant. “We are targeting to generate $15 million of sales for Netlinkz in the first year of the partnership, and expect this to increase over subsequent years.” Key to global expansion The LNS partnership is targeting to yield $15 million in new sales for Netlinkz in its first year, opening up new revenue streams to accelerate growth. This partnership is key to Netlinkz’ global expansion and is in line with its objective of bringing its world-leading VSN product set to new markets. LNS is providing the system integration skills, local presence, consulting and local industry knowledge, while Netlinkz will provide its VSN technology, along with a set of partner-enabled solutions in IoT, cybersecurity, COVID prevention/track and trace, and international and local secure communications. Participating in tenders Anticipated revenue for the new partnership will be from a blend of government tenders in the ASEAN region, existing LNS customers and new business. The partnership is currently participating in tenders exceeding $600 million and the company is currently working on closing sales to meet its target of $15 million and will advise the market in due course. LNS – major system integrators in Asia Founded in 2014, LNS is one of the major system integrators in Asia, providing consulting, business development and professional services to clients in various industries including to Fortune-500 companies in the pharmaceutical, healthcare and technology sectors. It has operations, with presence in Japan, Malaysia, Singapore, Hong Kong and Thailand.