Tomizone announces US installation partner

Auckland-based wi-fi company Tomizone [ASX:TOM] has appointed High Wire Networks as its primary installation and service delivery partner in the US.

Tomizone sells technology for managing a wi-fi network. Its customers include airports, cafes, retailers, and hotels and motels

“Having successfully delivered charter customers in market, Tomizone now has the proven capability to progress its North American growth strategy in line with the company’s international expansion plans,” a release to the ASX says.

High Wire president Mark Porter says public wi-fi has become important to the Illinois-based company’s multi-chain customers.

High Wire has 550 employees and manages more than 1000 network engineers covering over 95% of the US population.

The engineers deliver networks from three major hardware vendors — Cisco, Aruba and Ruckus.

High Wire will provide Tomizone with logistics and staging, installation and engineering and ongoing maintenance and support solutions for Tomizone products as well as the networks in which Tomizone products reside.

“The appointment of High Wire in North America aligns with our strategy of utilising key channel partners to rapidly increase our geographic coverage. A similar arrangement with Kordia Australia last month provides Tomizone with the same capability in Australia and New Zealand,” Tomizone chief executive Steve Simms says.

Tomizone says the US is the world’s largest wi-fi market and a “key pillar of Tomizone’s long-term growth plans.”

The ASX-listed company says the global wi-fi market is currently worth $US14.8 billion and is forecast to reach $US33.6 billion by 2020.

For the quarter ended June 30 2015, Tomizone had a negative operating cash flow of $629,000 on customer receipts of $560,000. This was offset by a $5 million capital raise, leaving a cash balance of $4.3 million at the end of the quarter.

Tomizone completed a backdoor listing on the ASX in June through failed wine company Prince Hill Wines.

Its share price rose to a high of A19c shortly after listing before falling to A15c a month later. It last traded at A16c.

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