BRITISH COLUMBIA--(Marketwire - Oct. 20, 2009) - Cantronic Systems Inc. ("Cantronic" or the
"Company") (TSX VENTURE:CTS)(PINK
SHEETS:CRIXF) announced today that its China subsidiaries have recently
been awarded three network video software and camera contracts worth
approximately RMB5.6 million (CDN$0.85 million) with three customers in
Beijing, Ningxia and Suzhou, China.
the three contacts with a total of RMB3.3 million in value are primarily
software contracts for intelligent video surveillance while the third one is a
video surveillance solution contract involving both software and hardware
valued at RMB2.3 million. We expect deliveries to happen within the next two to
the company announced on July 14, 2009 that the company has been awarded
through public tender a Safe City contract worth approximately RMB14 million
(CDN$2.4 million) with the local government in Kaili City. With these recent
contract wins, Cantronic's Safe City related projects now total to approximately
RMB20 million in new contracts since the completion of the acquisitions of
Yellow River and ANINFO. Installation for Kaili City project is well underway
and we expect it to be completed during Cantronic's current fiscal year.
China represents a unique opportunity, as the highly-fragmented Chinese
surveillance and security market has been growing at an annual rate in excess
of 30%. It is estimated to reach $43 billion by 2010, according to China Public
Security Guide (published by the Chinese Security and Protection Association)
due in part to the Chinese government's mandate for nationwide installation of
surveillance and security systems. Programs such as the Safe City Initiative
cover 666 cities country-wide.
expect that China will be the most important growth market for Cantronic. In
fact, revenues from China alone in 2009 will likely exceed our total revenues
in 2008," noted James Zahn, President and Chief Executive Officer of
Cantronic Systems Inc. "The RMB2.3 video surveillance solution contract is
for an integrated solution using software from AVINFO and hardware from Yellow
River, validating our strategy to acquire companies with complementary
products. Total solution sales provide us an opportunity for repeat sales as cities
build out their security and surveillance networks. Cantronic is benefiting
from the USD$586 billion stimulus package from the Chinese government as cities
speed up the installation of security and surveillance networks. We are making
great progress in our strategy to become a leader in China's growing security
market through complementary acquisitions and organic growth."
manufactures, distributes, and provides training and services in the fields of
infrared vision and video security surveillance technologies, specializing in
passive and active infrared cameras, infrared illuminators, low light infrared
sensitive CCD cameras and long-range night vision surveillance systems for
demanding homeland security and surveillance application.
through its US subsidiary QWIP Technologies, Inc. ("QWIPTECH"), holds
a worldwide, exclusive license from the California Institute of Technology
("Caltech") to produce and sell infrared detectors and sensors based
on Caltech's Quantum Well Infrared Photodetector technology.
Cantronic, through its China subsidiaries Cantronic
Security Systems (China) Co. Ltd., Beijing Advanced Videoinfo Technology Co.
Ltd. ("AVINFO") and Shenzhen Huanghe Digital Technology Co. Ltd.
("Yellow River"), provides digital networked video surveillance
solutions to government and corporate customers in China. Cantronic is a Tier 1
issuer on the TSX-V exchange, trading under the symbol CTS. For further
information about Cantronic and QWIPTECH, please visit our websites at www.cantronics.comand www.qwip.com.