Scout Security Ltd (ASX:SCT) has received a material new purchase order for 1,000 hubs from its key resale partner Zego, a leading US provider of smart home devices to apartment residents and managers.
The order will represent more than A$157,000 in revenue and cash receipts for Scout.
Notably, this is the third material purchase order Zego has made with Scout since the parties commenced their sales partnership in October 2017.
The companies are aiming to meet smart home security demand in the 18.8 million-unit apartment community market in the US.
Zego has now ordered more than 3,000 Scout hubs and remains one of the company’s key resale partners, targeting deployment of 5,000 to 10,000 Scout systems in the 12 months to October 2018.
Rapid industry growth
The broader dynamics of the industry remain positive, as sales of voice-controlled home automation devices continue to grow strongly.
The installed base for these devices in the US now exceeds 40 million sold by Google and Amazon alone.
Positive sales momentum for Scout Alarm
Scout Alarm is a self-installed, wireless home security system that is making security more modern, open and affordable.
Scout co-founder and chief executive officer Dan Roberts said: “We are pleased to see orders and sales flourishing through our partnership with Zego.
“The positive response to the Scout Alarm among Zego customers underscores our value proposition to smart home buyers who reside in leased apartments, a valuable market which is difficult for our competitors to service.
“With Scout now embedded as an integral component of Zego’s smart home package, we look forward to growing our business more strongly through this channel as we continue to integrate our product suite more closely with Zego’s smart home solution.”