Vection’s Partnership Spree Continues — VR1 Share Price Rises 6%
Few companies are seemingly as active as Vection Technologies Ltd [ASX:VR1] right now.
This tiny tech stock has confirmed yet another partnership. Their third in as many weeks. Capping off a flurry of news for the company.
If you want to read more about their recent dealings, click here.
Today though, they have landed yet another big name to work with. News that has sent the VR1 share price 6% higher in today’s trading.
New deal, new sales, new outlook
Vection has teamed up with TS Nuovamacut, an Italian-based distribution partner that works with the much larger French organisation: Dassault Systèmes.
At the heart of this deal though, is Solidworks. A computer-aided design program that is one of the most widely used in the world.
By teaming up with TS Nuovamacut, Vection is hoping to become a key part of this market. Leveraging their Italian clientele as potential customers for their own Mindesk product.
As Managing Director Gianmarco Biagi comments:
‘We are very pleased to have partnered with one of the largest Dassault Systèmes Solidworks partners globally. This relationship is a key step forward in our global distribution strategy, aligned with the June 2022 50% ARR goal.
‘Vection Technologies’ management is confidently delivering on its long-term strategy, with a clear roadmap to strong revenue generation during the second half of the current financial year.’
With no firm commitments in terms of actual revenue though, it is impossible to tell how much this partnership will be worth. If anything at all, potentially.
Because as we’ve previously noted, Vection’s biggest issue is revenue right now.
Fortunately, there is some good news on the sales front.
Vection did report last week that it had made its first few sales from its Dell partnership. A sign that perhaps all these new partners will one day pay off.
However, the $330,000 they announced is still a tiny sum compared to what they’ll need to breakeven. And their near $170 million market cap makes them one highly overpriced stock.
Nevertheless, the potential is definitely there. Vection simply needs to find a way to monetise all the hard work they are doing.
Whether that will happen sooner or later is tough to say.
One thing is for sure though, growth is all that matters for this tiny tech play.
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