Tern Plc : Statement re Portfolio Update

24 January 2018
Tern Plc (AIM: TERN)
Portfolio Update

Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), provides an update on the recent activities of its key portfolio companies. 

InVMA

• Achieved £1 million committed sales orders in 2017 through securing new customers in OEM, Oil and Gas, Asset Rental and Manufacturing markets
• Key contract wins were a UK/International Airport, Howden Process Compressors, MSE Hiller, MEMS and GCE

         
Device Authority ("DA")

• 2017 revenues impacted by delays in both customer implementation schedules and customer restructuring
• DA's new business pipeline remains strong, and the majority of the previous revenue target is now anticipated to fall in H1 2018
• DA secured a partnership with Thales, which DA believes will enable blockchain adoption with IoT and Enterprise IoT adoption
• Tern is confident that DA remains well-placed to become a leading international IoT security solutions provider:
  • Underpinned by DA's securement of a new three-year contract with a global technology consulting and digital solutions company which commits a minimum of $200,000 over the three-year life of the agreement

Shareholder call

• Tern looks forward to answering questions from shareholders during today's call at 10.30am
• To dial in, please follow the instructions provided in the announcement dated 15 January 2018
• Those wishing to view the presentation via mobile or tablet using the WebEx app, the code required is 701 887 873

         
Al Sisto, CEO of Tern, said:

"These orders and ecosystem expansions further demonstrate the progress our investee companies are making in terms of creating scalable business models in the fast-growing IoT markets. While customer/ partner timelines beyond our investee companies' control can push back our near term financial targets, the longer-term financial prospects of our portfolio companies remain strong. We are particularly pleased with the fast start InVMA has had in expanding its customer base with highly respected customers."

Further information

InVMA

Since Tern's investment in September 2017, InVMA has secured new customers in OEM, Oil and Gas, Asset Rental and Manufacturing markets, with key repeatable annual contracts won.  Amongst those are a UK/International Airport, Howden Process Compressors, MSE Hiller, MEMS and GCE.

The InVMA team expansion is also underway, with two experienced sales managers now in place.

InVMA continues to drive forward its AssetMinder(TM) product, which was only launched in September 2017 and which delivers real-time insights from remote and unmanned equipment and integrates DA's KeyScaler.  An example of this is an Etisalat IoT Partner targeting the UAE & GCC countries. AssetMinder(TM) is deployed in Etisalat's Innovation Centre in the UAE.  

Device Authority

Contract and Strategic Partnership with a global technology consulting and digital solutions company ("the Client")

DA has secured a new three-year contract with a global technology consulting and digital solutions company which commits a minimum of $200,000 over the life of the agreement. DA will receive an annual licence fee initially.  There is no minimum commitment on licence fee subscription, so any devices shipped will provide DA with additional revenue. 

At this stage, DA is unable to provide details concerning the identity of the Partner.  As is common in this sector, a customer must give permission for their identity to be released and this may not always be forthcoming due to the sensitivity and confidential nature of the services provided by DA.

The Client will be expanding the range of IoT services offered to their global customer base, and DA's KeyScaler platform will be a core component of their new IoT security service, including device registration and credential management solutions. These services will be targeted at Industrial, Smart energy and Smart City based programs, as Chief Information Security Officers (CISOs) seek guidance from the Client to solve the security challenges they are facing with IoT devices connected to the Enterprise.

Update regarding Thales Partnership

DA entered into a strategic partnership with Thales in January 2018.  DA's KeyScaler platform integrates with the Thales nShield Connect hardware security module ("HSM") to provide high-assurance device authentication, managed end-to-end encryption, and certificate provisioning for IoT devices, ideal for medical, industrial and other smart connected products.

The integration of the Thales HSM into KeyScaler provides for a very secure private key store, a critical requirement for financial and medical markets and for the use of blockchain cryptography.

Enquiries