Tony Taylor, CEO, Global Invacom Group
SGX-listed satellite communications equipment manufacturer Global Invacom Group Ltd. has secured an order of US$20 million from a Southeast Asian broadcaster, according to the company's chairman and CEO Tony Taylor.
Initial shipments were made in the fourth quarter of FY2012 and the bulk of the first order is expected to be recognised in FY2013.
"Southeast Asia is going to be huge for us this year," he said. "The first order we have got is for US$20 million but the final order could grow to US$30 million."
However, he did not divulge the name of the broadcaster or the country.
This deal gives the company an Asian footprint, said Taylor. He expects about 25 percent of revenues to come from Asia. "It is great to have an Asian footprint," he said. "Asia is the happening place in the future as well as it has a lot of money."
Reverse takeover of a subsidiary
Global Invacom Group, formerly known as Radiance Group Limited, has a design hub in UK, factories in China and customers in Europe, the US and Asia.
In a statement to the SGX yesterday, Global Invacom decaled a loss of US$960,000 in financial year 2012 (FY2012) owning to quality issues during contract manufacturing and assembly of the products at Radiance Electronics (Shanghai) Co. Ltd. (RESH).
RESH is Global Invacom Group's wholly owned facility in Shanghai, China, which provides electronics manufacturing services. Other reasons cited for operating loss are rising costs of wages and raw materials and the delayed shipments.
"We started manufacturing in China with Radiance group more than 12 years ago," Taylor told MIS Asia on Tuesday in an exclusive interview. The order was more than what they could handle and that's how they had decided to engage a Chinese manufacturer.
In 2010, Global Invacom had to do a reverse acquisition of Radiance group under very trying circumstances.
"We were doing a deal with another company to merge with a similar size of our own, and just that the deal was going through we learnt that the Radiance was in liquidation," said Taylor. "So I stopped that deal three days from completion, rushed over here with some guys, found the liquidator and made an offer. It would be great to have a footprint in Asia. Europe is stagnant and US is saturating. We believe there is a big opportunity in Asia. So we decided then to do this reverse takeover. Radiance was very valuable. What we did not think that it was going to take us two and half years to get it done but that's what happened."
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