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11 October, 2012 - 07:10 By Tony Quested

Sepura’s first North America deal a pathfinder

Sepura CEO Gordon Watling

Cambridge technology business Sepura has been awarded the first significant TETRA digital radio terminals contract in North America.

Canadian utility BC Hydro has taken delivery of a substantial initial order following the successful completion of the maiden TETRA pilot project on the continent.

Sepura CEO Gordon Watling believes the breakthrough deal is a pathfinder for the UK business.

He said: “The recent positive ruling by the Federal Communications Commission in the US gives further confidence in the potential for TETRA in North America. Sepura is well placed to capitalise on the development of this important longer-term market.”

The news came in a trading update for the six months ended September 28 in which Sepura reported a strong first half trading performance with a number of deliveries ahead of schedule.

As previously reported in Business Weekly, the company also celebrated combined wins for Sepura and the business it acquired – 3T – in Malaysia and Germany. Trading is in line with full year expectations but has clearly benefited from the early delivery of several orders originally scheduled for Q3.

Trading at the acquired 3T is in line with management expectations. Significant recent contract wins include CERN and RWE, while the benefits of the combined larger group offering has been evidenced by successful tenders for contracts to supply TETRA infrastructure and terminals to four Malaysian airports and Audi's headquarters – as well as the largest production plant in Ingolstad, Germany. Watling believes the outlook is sunny despite the clouds over many international territories. He said: “We have been encouraged by a solid start to the year, securing important contracts from a range of public-safety and commercial customers around the world.

“We have a strong order book for delivery in the second half of the year, combined with a robust pipeline of opportunities. “Our market-leading ATEX product is continuing to gain traction, while the inclusion of 3T's infrastructure to our TETRA portfolio has given us a demonstrable edge that has already secured several joint contracts.

“These successes, combined with the first TETRA terminals contract in North America, give us confidence that we will be able to build on our momentum to date.”

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