SGX-listed IoT solutions provider iWOW Technology Limited (&ldquo iWOW&rdquo ) has been awarded a significant contract by the Government Technology Agency of Singapore (&ldquo GovTech&rdquo ) for the design, supply, installation, commissioning, operation and maintenance of the Front-End System of the Wireless Alert Alarm System (&ldquo WAAS&rdquo ), which is expected to benefit around 26,800 more seniors living in around 170 rental blocks.

 

Building on Proven Success

 

Since 2019, iWOW has deployed the WAAS in approximately 51 HDB rental blocks, offering vulnerable seniors a vital lifeline during emergencies. The WAAS allows seniors to call for help by pressing conveniently placed alert buttons in their homes. Once activated, the system currently connects them to CareLine, a 24/7 emergency hotline and nearby Active Ageing Centres. To-date, this life-saving system has facilitated emergency medical assistance for more than 800 seniors.

 

Alert Device Customized for Govtech

This new contract introduces a custom-designed Alert Device that meets GovTech&rsquo s tender specifications. The device is LoRaWAN-enabled with 4G cellular voice capability and a battery life exceeding five years. In addition, it is IP rated for use in bathrooms where the risk of falls is higher. This ensures that seniors and their caregivers can have peace of mind, knowing that help is always within reach at the press of a button.

 

As part of this contract, the custom-designed Alert Device will be deployed to around 170 HDB rental blocks, benefitting approximately 26,800 more seniors, further strengthening support for aging-in-place initiatives.

 

Additional Eldercare Solutions

The contract also allows for the provision of other IoT Solutions that will further enhance safety of seniors. These include fall detection sensors and wearable alert devices.

 

Against this backdrop, the nation will need innovative solutions to address the challenges of its rapidly ageing society. iWOW remains committed to continuously developing purpose-driven innovation, especially to support ageing-in-place &ndash keeping seniors safe, connected, and empowered to age with dignity in their communities.

Catalist-listed technology provider iWOW Technology has requested for a trading halt at 1.19pm on Jan 27. An announcement is expected to be released later.

 

On Jan 7, the company announced the unveiling of two Age-Tech products at tech event CES 2025. The products, BOP monitor and BOP presence, complement the company&rsquo s existing product, BOP button, and are part of a suite of solutions to help keep seniors safe, connected, and empowered to age with dignity.

 

For the 1HFY2025 ended Sept 30, 2024, iWOW reported a net profit of $122,000, 57% lower y-o-y. Revenue dipped by 1% y-o-y to $17.1 million.

 

Prior to its trading halt, shares in iWOW traded at 18 cents per share.

 

iWOW Technology has reported a lower net profit of $122,000 for the 1HFY2025 ended September 30, a 57% y-o-y decrease from $284,000 for the same period last year. 

 

The group says this came on the back of increased employee and operating costs, which saw a 9% y-o-y increase and 3% y-o-y increase, respectively. 

 

Earnings per share stood at 0.05 cents, down from 0.11 cents in 1HFY2024. 

 

The group&rsquo s revenue for the 1HFY2025 came in at $17.1 million, a slight decrease of 1% y-o-y from $17.3 million in 1HFY2024. 

 

That said, the group adds that its IoT-as-a-Service (Iaas) and Wireless Engineering Solutions (WES) segments showed positive growth, which partly offset declines in other segments. 

 

For the period, IaaS revenue rose by 16% y-o-y to $3.4 million, driven by increased demand for Smart Metering Services and Electronic Monitoring Solutions (EMS). The WES segment also saw 11% y-o-y growth to $9.9 million, due to contributions from the group&rsquo s $20.0 million Smart City Infrastructure contract awarded in July 2023.

 

Meanwhile, the group&rsquo s Smart City Solutions segment revenue declined by 34% y-o-y to $0.3 million, while its Datacomm & Enterprise Solutions revenue fell by 18% y-o-y to $2.7 million, due to shifts in market demand. 

 

The group says it remains confident in its outlook, due to its robust pipeline of IoT and EMS projects and an order book of $83.5 million, as at Oct 31. 

 

" Our 1HFY2025 results demonstrate the resilience of our business despite economic challenges. Demand for our core IaaS and WES solutions have remained robust, supporting our stable revenue performance,&rdquo says Raymond Bo, CEO and executive director of iWOW Technology NXR . &ldquo As we continue to enhance our IoT and Smart City Solutions portfolio, the launch of the BOP Button in 1HFY2025 will be instrumental in enabling iWOW to capture new opportunities in the public sector and consumer markets, both locally and abroad, providing a strategic advantage in the Silver Generation Solutions space.&rdquo

 

iWOW Technology has reported a lower net profit of $2.8 million for the FY2024 ended March 31, 2024, a 22% y-o-y decrease from $3.6 million for the FY2023. 

 

The group says that this is following a weaker 1H2024 performance from the completion of the trace token project and higher costs associated with increased hiring to bolster the group&rsquo s R& D and business development capabilities. 

 

iWOW&rsquo s basic earnings per share for the FY2024 is 24.8% y-o-y lower at 1.06 cents, compared to the 1.41 cents per share in the same period the year before. 

 

The group&rsquo s revenue for the full year came in at $46.4 million, a 81.5% y-o-y growth compared to the FY2023 revenue of $25.6 million. 

 

This is due to the 12-month contribution from its Smart City Infrastructure segment in FY2024. 

 

The group&rsquo s 2H2024 revenue grew by 242.5% y-o-y to reach $29.1 million as compared to $8.5 million in 2H2023. 

 

This is due to full six-month contributions from both its Wireless Engineering Solutions (WES) and Datacomm & Enterprise Solutions (DES) segments (collectively Smart City Infrastructure), as compared to two months' contribution in 2H2023, following the acquisition of Roots Communication Pte Ltd (Roots). 

 

As at April 2024, the group has an order book of $93.5 million. The current order book is anticipated to generate revenues over the next five years.

 

iWOW remains optimistic about its long-term growth prospects, driven by strategic opportunities from Smart Nation initiatives and the rising demand for innovative IoT solutions in Singapore and the region. 

 

The recent launch of the Buddy of Parents (BOP) Button by its subsidiary, BOP Pte Ltd, signifies a major step into the eldercare technology market and is expected to boost the group&rsquo s revenue and earnings in the coming years. 

 

&ldquo While FY2024 presented its fair share of hurdles, our revenue growth trajectory and strategic advancements signal brighter prospects ahead," said Raymond Bo, CEO and executive director of iWOW Technology NXR 0.00% . " Our strategic focus on higher-margin subscription services, will further enhance our earnings visibility and long-term profitability.&rdquo  

It is also looking to take its smart solutions to overseas markets

COVID-19 turned out to be a boon to Catalist-listed tech provider iWOW Technology, whose biggest claim to fame is being the manufacturer of the TraceTogether tokens used during the pandemic.

 

With the use of these tokens discontinued, the company is looking to take its expertise in Internet-of-Things (IoT) to ride other megatrends &ndash such as digitalisation, ageing population, urbanisation and sustainability &ndash to fuel its growth.

 

iWOW&rsquo s IoT expertise is in the embedding of sensors into devices connected to a network, which can transfer data without human intervention.

 

&ldquo We&rsquo ve been around since 1999, it&rsquo s our 25th year and we are a veteran in the Internet-of-Things,&rdquo said Raymond Bo, iWOW&rsquo s chief executive officer.

 

The company segments its business into three key verticals: smart city solutions, IoT-as-a-service and Smart City Infrastructure. Some of iWOW&rsquo s products include a prisoner electronic monitoring solution, smart utility meters and a recently launched device and service called BOP or Buddy of Parent.

 

The BOP device allows seniors to call for help if they fall or are in distress. The device, which is wirelessly connected via the 4G cellular network, will direct them to a call centre that is manned around the clock with operators who will assess the situation by speaking to the senior.

 

The retail price for the device is S$200, with a monthly subscription fee of S$20 per home for the service.

 

&ldquo This is to help seniors to age at home safely, that is one of our very exciting focuses for the year,&rdquo said Bo.

 

There are plans to bring BOP to overseas markets as well, starting with Japan, which is also facing an ageing population issue.

 

Besides BOP, Bo is looking to bring the prisoner monitoring solution overseas after its good performance here in Singapore. The solution is now in its 10th year, and has helped in rehabilitation of prisoners and lowering the recurrence of reoffending.

 

Other business units, such as the wireless engineering solutions, will look to tap recent Singapore government announcements in upgrading the broadband networks on the island.

 

The main draw for iWOW&rsquo s customers is that its contracts are not capex-heavy. Instead, it utilises a leasing model with a subscription service for an operating expense-oriented model.

 

This has helped the company win government contracts as governments pivot to leasing models rather than taking on capital expenses, said Bo.

 

&ldquo This is in our favour, we prefer a model where the barrier to entry is higher,&rdquo he said.

 

Life after TraceTogether

For its latest half-year ended Sep 31, 2023, iWOW saw revenue from its Smart City Solutions segment &ndash which includes TraceTogether token sales &ndash tumble 97 per cent to S$0.4 million, from S$12.9 million in the same period the year before.

 

However, this was offset by revenue from new segments &ndash Wireless Engineering Solutions (WES) and Datacomm and Enterprise Solutions (DES) &ndash which commenced in the second half of its FY2023 ended March 2023. WES contributed S$8.9 million in revenue and DES contributed S$3.3 million in revenue.

 

For the H1 FY2024 ended September, iWOW&rsquo s total revenue inched up 1.2 per cent to S$17.3 million, from S$17.1 million the previous year.

 

Earnings, however, fell 88.2 per cent to S$0.3 million, from S$2.4 million in H1 FY2023.

 

One of the reasons for this decline was a big bump in expenses for employee benefits, as iWOW grew from 54 full- time employees to 164 by the end of H1 FY2024.

 

This increase is part of preparation for future opportunities, said Bo, as the company&rsquo s strength lies in its in-house research and development (R& D).

 

&ldquo One of the (initial public offering) promises was to invest in R& D and innovative products, which we have been pursuing,&rdquo said Bo.

 

A key challenge for iWOW remains in talent retention Bo emphasised that efforts have been made to benchmark salaries to what&rsquo s out in the market.

 

Another contributor to the increase in expenses, he added, was the company&rsquo s moves to grow overseas.

 

Currently, iWOW has only one overseas office in Kuala Lumpur, Malaysia, relying on partnerships for the other markets in Asia. Should the business in a market grow big enough, the company would open a local office to support it, said Bo.

 

Already, the orders are rolling in as iWOW moves towards capturing other megatrends post-TraceTogether tokens.

 

The company&rsquo s order book stood at S$100.4 million as at the end of October 2023, almost doubling from S$54.4 million the year before.

 

&ldquo We should see meaningful results in the next one or two years,&rdquo Bo said.