TZ Limited : Shareholder Update and Appendix 4C for December Quarter 2011
01/31/2012 | 07:30pm
TZ Limited
ABN 26 073 979 272
31 January 2012
Lodged by ASX Online
The Manager
Company Announcement Office
ASX Ltd
Level 4, 20 Bridge Street
Sydney, NSW 2000
Dear Sir/Madam
SHAREHOLDER UPDATE & APPENDIX 4C - DECEMBER QUARTER 2011
Please find attached the shareholder update and ASX Appendix
4C (unaudited) - Quarterly Report for entities admitted on
the basis of commitments for TZ Limited for the quarter ended
31 December 2011.
Yours faithfully, TZ LIMITED
Kenneth Ting
Director
TZ Limited Level 11, 1 Chifley Square, Sydney, NSW 2000
Australia Phone: +612 9222 8890 Fax: +612 8208 9937
TZ Limited
ABN 26 073 979 272
TZ LIMITED - SHAREHOLDER UPDATE
December Quarter 2011
1. Telezygology, Inc (TZI) Update:
The major focus this last quarter has been the successful
deployment of intelligent parcel lockers in Brisbane, St
Leonards and St Kilda as part of the Australia Post parcel
ready trial. The deployment represents an end-to-end, fully
integrated, bespoke locker solution for Australia Post which
comprises a hosted, web-based customer registration,
management and messaging system from Pitney Bowes (PB)
Software and a modular, multi-configurable, customised,
software driven parcel locker system from TZI. The high level
of customisation and integration puts TZI and PB in an
advantageous position to participate in any future parcel
locker extension and/or expansion programs that might be
undertaken by Australia Post (AP).
Market feedback on the parcel lockers appears to be extremely
positive as evidenced by several favourable public blogs on
the locker systems. We believe that the trial
has been successful and look forward to continuing to build
our relationship with AP.
The AP trial has initiated interest from other international
postal organizations and we are currently also in discussions
with large logistics and on-line retail companies who are
looking to support their B2C roll-out strategies. The
substantial growth in on-line retail purchases and the need
for practical and convenient parcel delivery options is
fuelling transformational business opportunities which the
company is aggressively pursuing in the US and Australia.
Coles refrigerated locker trials represent another customised
B2C locker solution due for deployment in mid-March across
NSW and Victoria at 6 trial locations. This trial phase will
reinforce the successful use of lockers as a means for
facilitating a convenient grocery delivery service to on-line
customers and provide the validation
for national roll-out.
Our PAD business continues to develop strongly, fuelled by
the need for corporates to support the agile workplace and
on-line businesses to pursue last mile delivery solutions. As
new trials commence, several clients have repurchased or are
considering repurchasing. This not only demonstrates system
acceptance but points to roll-out to the broader
infrastructure. TZI's excellent track record of transitioning
trials into multi-bank deployments reinforces the potential
for broad scale integration. The first PAD unit sale was
secured in January 2011 and today, there are over 40
PAD units deployed or scheduled for deployment globally. If
our early adopter roll- outs are representative of other
customers, we are anticipating that several
customers currently undertaking trials will be re-ordering in
the short to medium term.
TZ Centurion has been successfully deployed and is
operational at NextDC's Brisbane Data Centre and is scheduled
for installation at Melbourne this month. This is a major
endorsement for TZI's IXP systems and provides a solid
reference site, particularly with the increasing interest in
micro-security driven by the growth in cloud computing. Off
the back of the successful NextDC deployment, we have been
asked to quote on several projects in Australia.
TZ Limited Level 11, 1 Chifley Square, Sydney, NSW 2000
Australia Phone: +612 9222 8890 Fax: +612 8208 9937
ASX Announcement
A focus around larger strategic deals in the US and APAC has
prompted reprioritization and restructure of the current
organization, leading to a far more focused sales team.
Supporting this shift, Keith Schwartz has been appointed to
lead North American and
European sales. Keith comes with over 23 years of Sales
Management experience in the commercial and public sectors
with a technology background encompassing
security and protection, RFID - Asset Tracking, cloud
computing and connectivity
and storage networking. Keith grew the North American sales
of Imation to the highest revenue and gross margin in the
company's history.
The Company has also appointed Bharath Ram to oversee and
manage strategic product management and to pursue licensing
opportunities in Asia and potentially other industry sectors.
Bharath has an engineering and software background with over
20 years corporate experience in building and scaling
world-class companies. He was one of the early employees at
Verisign Japan and was instrumental in building Verisign's
international business from start-up to over $350 Million
over 15 years.
2. Product Development Technologies (PDT) Update:
Over the quarter, PDT has refocused its business to pursue
multi-million dollar contracts by engaging strategically on
large scale and complex multi-disciplinary projects. This
focus will underpin on-going revenue growth particularly as
the business climate remains uncertain with the 2012 US
presidential elections looming, prospect of budget cuts and
increased taxes and the on-going economic concerns in
Europe.
This initiative has led to re-alignment of the PDT
organizational structure and investment in organically
building a knowledge base and core competencies that are
capable of meeting the specialist expertise and demands of
these larger projects.
For example, the investment in establishing a solid Android
knowledge platform over the last 12 months, while steep in
learning curve, has resulted in 14 outstanding Android
project opportunities, most of which represent military
contracts.
With the current backlog of work growing PDT remains
confident in meeting its
FY2012 business targets.
3. TZ Limited:
The Company continues to position itself for growth by taking
the necessary steps to ensure its products and services are
at the intersection of fast growing market segments, new or
emerging needs, gaps in current integrated technology
solutions and/or competitor offerings.
For example PAD, as a total integrated end-to-end system
offering, addresses the latent needs for practical last-mile
delivery solutions to consumers and the provision of
convenient 24/7 choices for the pick-up and drop-off of
parcels. This emerging hot spot, driven by substantial growth
in on-line retail purchases, offers unprecedented
transformational business opportunities for TZ and its
partner, PB. The flexibility, responsiveness and technology
position of TZ coupled with the wherewithal, scale and
offerings of PB, ensure these opportunities are accessible
and can be fully realised to deliver substantial value for
our shareholders.
TZ Limited Level 11, 1 Chifley Square, Sydney, NSW 2000
Australia Phone: +612 9222 8890 Fax: +612 8208 9937
ASX Announcement
Net cash outflows were greater than anticipated with some
delayed deployments impacting sales and cash receipts.
Restructuring undertaken at TZI and PDT have yet to impact
bottom line monthly expenditure although the initiatives
should show demonstrable impact in the first quarter of
2012.
The Company has established a stand-by loan facility with QVT
for US$3 Million, subject to a number of pre-drawdown
conditions.
More detailed commentary will be provided when the audited
half yearly report due for release at the end of February
2012.
TZ Limited Level 11, 1 Chifley Square, Sydney, NSW 2000
Australia Phone: +612 9222 8890 Fax: +612 8208 9937
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Appendix 4C
Quarterly report for entities admitted
on the basis of commitments
Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005
Name of entity
TZ Limited
ABN Quarter ended ("current quarter")
26 073 979 272
31 December 2011
Consolidated statement of cash flows
Cash flows related to operating activities
1.1
Receipts from customers
1.2
Payments for
(a) staff costs
(b) advertising and marketing (c) research and development
(d) leased assets
(e) other working capital
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes refund/(paid)
1.7 Other (proceeds from settlement of litigation announced
to ASX on 17 August 2011)
Net operating cash flows
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 1
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
|
|
Current quarter
$A'000
|
Year to date
(6 months)
$A'000
|
|
1.8 Net operating cash flows (carried forward)
|
(2,334)
|
(5,178)
|
|
Cash flows related to investing activities
1.9 Payment for acquisition of: (a) businesses
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.10 Proceeds from disposal of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other (provide details if material)
Net investing cash flows
1.14 Total operating and investing cash flows
|
-
- (23) (66)
-
-
-
-
-
-
-
-
-
|
(200)
- (35) (149)
-
-
-
-
-
-
-
-
-
|
|
Cash flows related to investing activities
1.9 Payment for acquisition of: (a) businesses
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.10 Proceeds from disposal of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other (provide details if material)
Net investing cash flows
1.14 Total operating and investing cash flows
|
(89)
|
(384)
|
|
Cash flows related to investing activities
1.9 Payment for acquisition of: (a) businesses
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.10 Proceeds from disposal of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other (provide details if material)
Net investing cash flows
1.14 Total operating and investing cash flows
|
(2,423)
|
(5,562)
|
|
Cash flows related to financing activities
1.15 Proceeds from issues of shares, notes, etc.
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings
1.18 Repayment of borrowings
1.19 Dividends paid
1.20 Other - Share issue Cost
Net financing cash flows
|
210 (210)
-
-
|
423 (423)
-
-
|
|
Cash flows related to financing activities
1.15 Proceeds from issues of shares, notes, etc.
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings
1.18 Repayment of borrowings
1.19 Dividends paid
1.20 Other - Share issue Cost
Net financing cash flows
|
-
|
-
|
|
Net increase (decrease) in cash held
1.21 Cash at beginning of quarter/year to date
1.22 Exchange rate adjustments to item 1.21
1.23 Cash at end of quarter/year to date
|
(2,423)
3,483 (52)
|
(5,562)
6,627 (57)
|
|
Net increase (decrease) in cash held
1.21 Cash at beginning of quarter/year to date
1.22 Exchange rate adjustments to item 1.21
1.23 Cash at end of quarter/year to date
|
1,008
|
1,008
|
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 2
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Payments to directors of the entity and associates of the
directors
Payments to related entities and associates of the related
entities
Current quarter
$A'000
1.24
1.25
Aggregate amount of payments to the parties included in item
1.2
Aggregate amount of loans to the parties included in item
1.11
389
-
1.26
Explanation necessary for an understanding of the
transactions
Being directors' fees & allowances, expense
reimbursments, accounting fees, marketing, insurance and rent
paid to the directors and their related entities during the
period.
Non-cash financing and investing activities
2.1
2.2
Details of financing and investing transactions which have
had a material effect on consolidated assets and liabilities
but did not involve cash flows
N/A
Details of outlays made by other entities to establish or
increase their share in businesses in which the reporting
entity has an interest
N/A
Financing facilities available
Add notes as necessary for an understanding of the position.
(See AASB 1026 paragraph 12.2).
3.1 Loan facilities
3.2 Credit standby arrangements
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 3
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in
the consolidated statement of cash flows) to the related
items in the accounts is as follows.
Acquisitions and disposals of business entities
5.1 Name of entity/business
5.2 Place of incorporation or registration
5.3 Consideration for acquisition or disposal
5.4 Total net assets
5.5 Nature of business
Compliance statement
1 This statement has been prepared under accounting policies
which comply with accounting standards as defined in the
Corporations Act (except to the extent that information is
not required because of note 2) or other standards acceptable
to ASX.
2 This statement does /does not* (delete one) give a true and
fair view of the matters disclosed.
Sign here:
................................................................
(Director/Company secretary)
Print name: Kenneth Ting
Date: 31 January 2012
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 4
Appendix 4C Quarterly report for entities
admitted on the basis of commitments
Notes
1 The quarterly report provides a basis for informing the
market how the entity's activities have been financed for the
past quarter and the effect on its cash position. An entity
wanting to disclose additional information is encouraged to
do so, in a note or notes attached to this report.
2 The definitions in, and provisions of, AASB 1026: Statement
of Cash Flows apply to this report except for the paragraphs
of the Standard set out below.
6.2 - reconciliation of cash flows arising from
operating activities to operating profit or loss
9.2 532
9.4 - itemised disclosure relating to disposals
12.1(a) - policy for classification of cash items
12.3 - disclosure of restrictions on use of cash
13.1 - comparative information
3 Accounting Standards. ASX will accept, for example, the use
of International Accounting Standards for foreign entities.
If the standards used do not address a topic, the Australian
standard on that topic (if any) must be complied with.
+ See chapter 19 for defined terms.
24/10/2005 Appendix 4C Page 5
