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iWOW Technology 1H2026 Net Profit Surges 372% · Investor Exchange

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  Time for another Investor Exchange podcast. Here are your hosts, Matt and Sally.
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  Welcome to the Deep Dive. Today, we are wrestling with a headline that,
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  well, it almost sounds too good to be true.
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  We're talking about a technology company, IWOW Technology Limited,
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  that just announced a net profit surge of 372%. In a single six-month period.
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  Exactly. It's an explosive number. It is. And it immediately makes you ask questions.
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  So for everyone listening, we're looking at their financials for the half year
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  that ended September 30, 2025. They call it 1H2026.
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  And our mission today is pretty critical, I think. We need to figure out if
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  this huge profit jump is a fluke, maybe a one-time thing, or if it's the start
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  of something genuinely sustainable. That's the core question, isn't it?
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  Because what our sources suggest is some kind of major strategic shift.
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  The key numbers are, on one hand, a pretty modest 12% revenue increase,
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  and on the other, that unbelievable 372% leap in net profit.
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  And it all seems to center around one big thing, a massive Agetech contract
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  they're rolling out. The wireless alarm alert system, or the OS.
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  Exactly. And, you know, when you see a huge jump in the bottom line that doesn't
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  really mirror what's happening with revenue, you know, something big has changed
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  inside the company. Right.
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  Either that or there's a big non-recurring item we need to find.
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  Let's start with those top line figures.
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  So we're comparing this half year to the same period last year.
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  Revenue climbed from about $17.1 million to $19.1 million. A 12% bump.
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  Decent. Decent, but not earth shattering. But then net profit just exploded
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  from $10.1 million to $7.6 million.
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  And there's your 372% surge. You know, what's more important than the percentage
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  itself, I think, is what it says about their profitability.
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  Last year, their net profit margin was razor thin. We're talking 0.7%.
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  Barely breaking even. Barely.
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  Now it's up to 3.0%. That's a fourfold improvement.
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  Yeah. For a company like this dealing with complex IoT infrastructure,
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  that kind of margin expansion points to some serious gains in efficiency.
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  And it really highlights how close they were to being in the red before.
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  I mean, their profit before tax went from a small loss of several 0.02 million
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  dollars. A rounding error, basically.
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  To a pretty solid profit of CO.70 million dollars this time around.
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  And that is a perfect example of operational leverage.
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  They finally hit a point where their fixed costs could handle that modest revenue increase.
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  And most of the new money just dropped straight to the bottom line.
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  Okay, let's unpack that. Because a 12% revenue increase doesn't just naturally
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  lead to a 372% profit explosion.
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  No, it doesn't. Something exceptional had to happen with their business segments
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  or their cost structure.
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  So where did the growth really come from. It's all about their diversification strategy.
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  The CEO mentioned this, and the numbers really back it up.
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  Basically, they had three segments that showed fantastic growth,
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  which more than made up for a planned decline in another.
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  Okay, so let's start with the big winners. The main engine here was their data
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  comm and enterprise solution segment.
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  DES for short, it surged 120% in revenue, leapt from S2.7 million dollars all
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  the way to 6.0 million dollars. Wow.
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  And this was all driven by more sales of network infrastructure solutions.
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  So their core enterprise business is really firing on all cylinders.
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  Is that sustainable, though?
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  You wonder if it was maybe a one-time refresh cycle for a few big clients.
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  That's a fair question, for sure. But another division, trading and others,
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  also grew by 85%. And that That was mainly from selling those same datacom products in other regions.
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  So that suggests it's not just a one-off thing, but a broader market demand.
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  Okay, so that's the enterprise side. But the big story is meant to be Agetech.
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  How did the Smart City Solutions segment do?
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  Smart City Solutions, or SCS, grew by a really impressive 114%.
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  Now, it's from a smaller base.
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  It went from $40.3 million to $40.6 million. But the key thing is,
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  this growth is explicitly tied to that new growing age tech business.
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  So those investments are already starting to pay off.
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  So that's the diversification success story. But what about the offset?
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  You mentioned a decline. Revenue from wireless engineering solutions,
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  WES, actually fell 23 percent from almost this $10 million down to $7.7 million.
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  Why the drop there? And the decline is actually a crucial context. It wasn't a failure.
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  It was the natural end of a very large non-recurring contract.
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  In the period they're comparing against, that WS revenue was artificially high
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  because they were finishing up a massive S20.0-year million dollar smart city contract.
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  So this drop was expected. And the fact that the other segments covered that
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  hole and still drove 12% overall growth?
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  Well, that makes the performance even more impressive. That's a great point.
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  It means the growth was strong enough to fill a pre-existing gap.
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  And their IoT as a service business, ISS, that stayed stable at S3.4 million
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  dollars, which is good returning revenue. Right.
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  But now we have to talk about the other thing that helped push that 372 percent
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  number so high. Other operating income. Exactly. The non-operational boost.
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  So what happened there? Other operating income shot up by 186 percent to S3.8
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  million dollars. And the main reason was an initial grant they got from the DBS Foundation.
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  It was part of an Impact Beyond Award specifically for their innovation in age tech.
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  And while that's great validation, we have to be clear, that's non-recurring
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  income. It's a one-time thing.
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  So doesn't that undermine the sustainability of the 372% figure?
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  If you strip out that grant, the profit growth looks a lot less spectacular.
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  It absolutely does, which is why we have to look past the headline.
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  The 372% is mathematically true.
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  But the real story is that operational leverage, that margin improvement from
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  0.7% to 3.0% That was driven by
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  real segment performance and smart cost management, which is sustainable.
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  The grant was just, you know, nice icing on the cake.
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  Okay, let's dig into that efficient cost management then. Because scaling up
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  for a huge new contract while also managing costs, that's where a lot of companies
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  fall down. They were very targeted.
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  They cut costs where revenue was falling, but they strategically increased costs
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  to prepare for future growth.
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  So where did they spend more money? Two main areas, both directly tied to that
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  big S-50 million dollar Agetech contract.
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  First, employee benefits went up 9%. Okay, so hiring. Exactly.
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  Strategic hires to build out the team they need to deploy this massive multi-year
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  project. Building the team ahead of the revenue curve makes sense.
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  What about capital spending?
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  Amortization and depreciation rose by a pretty significant 31%.
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  And that's from new leasing assets they acquired specifically for the Agetech business.
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  So they're investing in the hardware and infrastructure they'll need.
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  A 31% jump in amortization is a big number. Is that
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  Is that front-loading the costs for a longer-term gain? It seems like it, yeah.
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  The contract is set to run for four years, so they have to get the assets in place now to even begin.
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  It hits the margin a little bit today, but it secures years of future revenue.
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  Okay, so those are the necessary costs of growth. But where did they find the savings?
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  This is the smart part. Their other operating expenses actually went down by 13%. How?
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  Mostly from an S.8 million dollar reduction in subcontracting expenses.
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  This lines up perfectly with the lower revenue from that WAS segment.
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  I see. So they successfully scaled down their use of third-party contractors
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  for the old project cycle whilst scaling up their own internal team and assets
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  for the new Agetech focus.
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  That's the real story, then. A very disciplined, operational pivot.
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  Now, let's shift focus entirely to the future.
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  This Agetech contract is clearly the engine.
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  What kind of visibility does the company actually have? The future looks pretty
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  well-defined, actually.
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  Their total order book as of late October 2025 stands at a really substantial
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  S-115.2 million dollars. That's a lot of revenue visibility.
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  It is. It gives them stability for many quarters to come.
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  And the centerpiece of that is the S-50 million dollar WAROS contract.
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  We know they got a new loan for it, but what's the timeline for recognizing that revenue?
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  So this is their core strategic initiative right now. They're saying the deployment
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  is still in its early phase and will probably span about four years.
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  The key thing they're pointing to is progressive month-on-month revenue growth
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  as the project scales up. So the profit we saw this half year is just the very beginning.
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  It's just the appetizer. The main course is still coming. So what about the tech itself?
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  Their Agetech subsidiary is called BOP PMLTD. What are they actually selling?
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  They have a foundational device that's already out there.
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  It's called the BOP button. It's an emergency alert system, and it's already
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  in over 10,000 homes. It even won a design award recently.
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  So they're building on that success by moving into what's called ambient sensing, right? Precisely.
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  Their newest product is called BOP Presence, a smart plug, so it's very unobtrusive.
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  And it uses Wi-Fi sensing to detect if a person is present in a room.
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  It basically tracks tiny distortions in the Wi-Fi signal caused by movement.
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  Pretty sophisticated stuff. And the key selling point here is privacy.
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  Absolutely paramount. The whole design is built around detecting presence without
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  using cameras or microphones or even wearables that someone has to remember to put on.
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  That's a huge barrier to adoption, that feeling of being watched.
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  It is. So by focusing on privacy, they're making it much easier for families
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  to say yes to this kind of technology. And they have more coming,
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  right? What's next on the roadmap?
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  Next up is the BOP monitor, which is planned for the first quarter of 2026.
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  This is an AI-driven smart sensor specifically for fall detection.
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  The goal is to be much more accurate and reduce all those false alarms you get
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  with older systems while still, you know, safeguarding that user privacy.
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  So if you connect all this product
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  development back to their overall strategy, what's the end aim here?
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  Management said they're cautiously optimistic. They're riding the wave of these
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  big smart nation initiatives in the region.
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  The plan is to execute on that huge order book while also looking for M&A opportunities
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  and expanding overseas.
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  The stated goal is to become a dominant player in the entire broader silver
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  economy. Right. So sort of bring this all together for our deep dive.
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  IWW's 372% profit surge wasn't just a flute, even if a one-time grant helped the headline number.
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  It was fueled by this perfect storm of strong growth in their data comm and
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  smart city segments, really impressive operational leverage,
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  and the very first stages of this massive multi-year age tech deployment.
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  The foundation looks very sound. That S-115.2 million dollar order book gives
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  them a clear path forward.
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  They're executing a really disciplined diversification strategy.
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  They're cutting cyclical costs from old projects while investing in the team
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  and assets for the future.
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  Everything is geared towards that big age tech contract. So their sustainability
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  really hinges on executing that $50 million SavioSol project successfully over
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  the next four years. That's the ballgame right there.
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  And as we think about the future of this kind of technology,
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  especially in sensitive areas like elder care, let's leave you with this final thought.
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  This new BOP presence sensor uses Wi-Fi sensing to keep seniors safe,
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  while explicitly avoiding cameras and microphones to protect their privacy.
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  How critical do you think that commitment will be as tech moves further into
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  our homes, and could that be the defining factor for who wins the long game in the silver economy?