Conversation 182: Icetana trading at all-time lows of a year ago, yet this video anomaly detection company has added numerous contracts since then.
Icetana [ASX:ICE] is a business built off the back of some CSIRO self-training system technology designed to pick up video anomalies.
As an example, imagine a security camera that watches the same spot, day in day out.
Over a few weeks, the ICetana system learns what a normal environment shot looks like at a pixel by pixel level.
If a pixel doesn’t move for a certain amount of time that is considered normal by the system.
However, once it’s learned “normal” if something changes, like a person opening a door they are not supposed to, the system immediately:
Notifies the control room operator.
Rewinds the video capture by fifteen seconds.
Starts showing the operator what is going on.
ICE claims its system turns traditional “record for later use” security surveillance into an active and reactive one and that can increase the number of monitors controlled by a single operator, by a factor of 60.
The technology has resulted in numerous sales, including a recent 600 camera contract in the Middle East.
That customer ultimately has 2.5k cameras covering multiple shopping malls.
In February ICE announced a three-year contract with a Singapore integrated resort operator worth about half a million dollars.
But like the Middle East deal, this represents only 5% of the potential business that ICE could pick up if the system delivers on its claims.
Power plants and prisons are also sectors that have shown to be rich target areas for the company, with the signing of a Canadian utility company and a number of prisons in the United States.
And yet the companies share price is at an all-time low.
Morningstar’s quantitive rating system [as of 17/03/2021] has Icetana’s Fair Value at $0.16c. A Fair Value Percentage Difference of 31.53%.
At the time of writing the shares were trading at $0.105
I caught up with Icetana CEO Matt Macfarlane a little while ago.
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MORE FROM MY INTERVIEW WITH MATT MACFARLANE
Due to COVID Icetana has streamlined its installation system and turned it into a remote install process rather than a time consuming and expensive fly to site approach.
A 200 to 400 camera system can be set up and going live in about 8 weeks.
Implemented a video training program for new clients, again streamlining the old process.
At the time of this interview CEO Matt Macfarlane told me he had ~$800k in purchase orders waiting to be implemented.
Now has 4 out of 20 staff just handling implementation of new systems.
