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Tech & Science Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project

03:50  06 november  2019
03:50  06 november  2019 Source:   stockhead.com.au

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Ocean between Asia and Australia in the west, the Americas in the east and Antarctica or the Southern Ocean in the south. The Pacific Ocean is the largest and deepest of Earth's oceanic divisions.

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Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project© Stockhead Australia Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project

Data technology company DXN Limited (ASX:DXN) is setting up shop in the Pacific Ocean.

It’s part of a $2.4m deal the company — which designs and builds data centres — announced this morning with Telstra-backed Southern Cross Cable Ltd (SCCL).

As part of the agreement, DXN will supply key components for the construction of modular cable landing stations for three locations in the Pacific, in connection with a broader $300m communications network that SCCL is building in the Pacific region.

Shares in DXN climbed by more than 8 per cent in morning trade to 6.7c.

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The Pacific Ocean Shelf Tracking Project (POST) is a field project of the Census of Marine Life that researches the behavior of marine animals through the use of ocean telemetry and data management systems.

Connecting up

The pre-fabricated landing stations will be deployed at three separate Pacific island nations — Fiji, Kiribati and Tokelau.

It forms part of SCCL’s bigger strategic objective — to create a hardware cable system providing increased connectivity between Sydney, Auckland and Los Angeles by early 2022.

The cable system will also provide increased connectivity for the three countries hosting the infrastructure.

DXN CEO Matthew Madden said he was confident the company would be able to provide a “robust and reliable solution to the people in the Pacific Islands for the 25-year plus life of the cable”.

Construction of the landing stations will start this month, and will be deployed on-site by next year.

DXN said they are built to withstand changing weather conditions, with backup power functions and the requisite security features.

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Ocean Currents Names and Maps - Ocean Blue Project . Pacific Ocean Map by Melynda Beam. Ocean Currents opposed to wind driven currents and tides the Thermohaline Circulation is part of the ocean circulation which is driven by density differences of sea water between temperature and salinity.

The Great Pacific garbage patch, also described as the Pacific trash vortex, is a gyre of marine debris particles in the north central Pacific Ocean .

Once set up, the broader infrastructure project will allow Southern Cross customers to access increased functionality across key points of contact between Australia, the US and New Zealand.

DXN said the $2.4m contract was “subject to standard termination provisions for a contract of this nature”.

Stockhead has contacted the company for comment on details around what those provisions are.

In other ASX tech news today:

B2B software company 9 Spokes (ASX:9SP) is looking to do a deal with another potential commercial partner — this time with OCBC Bank (Malaysia) Berhad. The two sides have signed a memorandum of understanding (MoU’s are only provisional agreements) to roll out 9SP’s data-aggregation platform to OCBC’s Malaysian operations. 9SP’s stock price has jumped around this year on the back of similar announcements, including deals with Microsoft and the Bank of New Zealand. Shares in the company were up 5.8 per cent at 1.8c this morning.

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Programatic advertising company Engage:BDR (ASX:EN1) provided a bullish trading update, where the company said annual revenues were up more than 200 per cent from October last year to $2.02m. Shares in EN1 ticked higher to 3c, still off from the 2019 highs above 5c reached in late-January.

And gaming company Esports Mogul (ASX:ESH) said it’s adding a propriety functionality to its product offering, with the rollout of more language formats. The company is initially targeting market opportunities in the Middle East and South America, with new simplified language formats in Mandarin, Arabic, and Portuguese. Shares in ESH edged lower in morning trade, back to 1c.

The post Tech: DXN signs $2.4m deal as part of $300m Pacific Ocean infrastructure project appeared first on Stockhead.

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