+++++++++++++++++++++++++ Leading security technology company, ECSI Limited (ASX: ECS) today released its Appendix 4C for the June Quarter showing a strong cash position of A$11.6 million.
Cash expenditure for the quarter was $0.4 million, principally incurred on rolling out its security monitoring enhancements in China.
No cash revenue for the quarter was reported, however this is expected to quickly change as ECSI's wholly owned Chinese subsidiary, EC21 Limited, collects proceeds from previously announced sales.
Additional sales are expected to be announced shortly.
ECSI Chief Executive Officer, Graeme Green, said that the company was very satisfied with the result and its progress in China given that it only listed on the ASX in April 2002.
"I have just returned from China and am pleased to announce that substantial progress has been made on the rollout of the National Alarm Response system (NAR system) and our monitoring enhancements in China."
"This progress has been achieved with minimal impact on the proceeds from our April fund raising through a combination of vendor financing and tight control of corporate expenditure".
"The company remains well capitalised to meet its objectives in China and the expected long term vendor financing agreement presently being finalised will have a significant positive impact on future working capital requirements".
ABOUT ECSI LIMITED
ECSI Limited is an electronic security technology company, which provides security-monitoring enhancements to complement the NAR system currently being rolled out by its Chinese partner, Jeton.
ECSI Limited listed on the ASX in April this year after raising approximately $13.5 million from a share issue and convertible note.
The company announced earlier this year that it had received the first order under the 10-year contract with Jeton. Further orders are expected to be announced shortly as Jeton connects clients to the NAR system in Chengdu, Dalian, Beijing and Wuxi.
As previously announced, the company is finalising advanced negotiations with several global computer equipment manufacturers who are keen to enter into sales, financing and servicing agreements over the 10-year term of the agreement with Jeton. An announcement to this effect will be made shortly.
For enquiries please contact:
Simon Owen Chief Financial Officer and Company Secretary (02) 6241 3311
ECS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
