Shares of Xplore Technologies soared 30 percent on Wednesday, April 23, after the Canadian maker of rugged, portable computers announced its biggest deal to date ― a 300 million Canadian dollars letter of intent with a Dubai firm which aims to market its computers across the Middle East.
Xplore said in a statement that Emaar Properties PJSC of the United Arab Emirates would sell its products in 30 countries in the Middle East, North Africa and the Indian sub-continent.
Xplore said it has signed a letter of intent to supply Emaar, which is one-third owned by the Dubai government, with up to 50,000 of its heavy-duty computers over three years.
Shares of Xplore rose as much as 39 percent or Can$ 2.01 to a year high of Can$ 7.20 on the Toronto Stock Exchange in early morning trading, but settled back to Can$ 7.05, up Can$ 1.86, by midday.
Utility companies and police forces use Xplore's durable, vehicle-mounted computers to connect with field service workers and with officers. The company sells to the military through Thomson-CSF and is working on a waterproof computer with Argonaut Computers Inc.
Emaar, a developer of residential, shopping and leisure properties in the UAE, plans to distribute Xplore's wireless computers in 30 countries throughout the Middle East, North Africa and the Indian subcontinent.
The computers will be able to operate on radio and cellular based networks, said Xplore. Emaar plans to use the computers to help advance the UAE into a regional leader of wireless communication networks in the region.
Shares of Emaar closed down four percent at a year low of 18.3 dirhams on the Dubai Financial Market on Wednesday.
The distribution deal with Emaar is 10 times larger than Xplore's last major supply agreement, a deal to supply Home Depot with Can$ 30 million worth of pen-based tablet computers for the management and pricing of inventory.
Xplore is still a small company. It reported revenues of Can$ 5.7 million in the nine months to December 30, up from Can$ 1.3 million in the year ago period. ― (Reuters, Toronto)
© Reuters 2001
© 2001 Mena Report (www.menareport.com)