Howin deal becomes clear for Clarity

Howin deal becomes clear for Clarity

ASX-listed Clarity International has penned an agreement with a Taiwanese telco worth $28.9 million over 18 months.

Clarity is in the fortunate position of having to revise its ASX earnings statement set out in its September prospectus after it signed the agreement with Howin Technologies for the software developer's flagship product Operational Support Systems (OSS).

Under the terms of the agreement, Clarity will integrate its OSS product to provide network management, customer billing and provisioning for Howin's fixed-line network. Clarity will also provide project management and training for Howin's staff as part of the contract.

It is a significant win for the developer, which provides software for telecommunications companies and utilities, claims Tony Kalcina, chief executive officer of Clarity.

Howin, a subsidiary of Taiwan's largest mobile carrier Pacific Cellular, recently secured a licence to roll out a fixed-wire network before putting its network software requirements up for tender over three months ago. Clarity secured the tender, under what Kalcina refers to as a "confirmation" of the Australian company's validity in the market.

"Furthermore, the ongoing support and maintenance agreement is a sign of confidence in our solution's scalability and Clarity's suitability as a long-term technology partner," Kalcina says.

The contract is valued at $25.9 million for the software sale and integration, followed by a further $3 million for an 18-month warranty period, according to a statement released by Clarity to the ASX.

As a result of the contract, Clarity is expected to exceed its prospectus for the year ending 30 June 2001 by $15.5 million to close at $35 million. Clarity's shares spiked briefly last week on the back of the announcement before levelling off at $3.30 a share.

Photograph: Clarity CEO Tony Kalcina

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