Emerging markets, like those in South America, long ago became one of the dominant growth engines of C. Mer Industries Ltd. (TASE: CMER), the telecommunications company owned by Chaim Mer. C. Mer CEO Marian Cohen is trying to increase C. Mer's presence in South American cities, and for now it seems that his efforts have been successful.
C. Mer has won a Ministry of Defense contract with a South American country, to set up a "Safe City." The Safe City projects provide systems for monitoring and control. A Safe City is a secured area of the city that allows city residents to deal on a daily basis with local crime and natural disasters.
C. Mer did not disclose which South American country won the Safe City order, but "Globes" has been informed that it is Argentina, and the city Buenos Aires. C. Mer will supply, install and maintain telecommunications, video, and movement control systems, and will build a city-wide control center and install these systems in police vehicles.
The project is worth $41.8 million (NIS 143 million) and according to company management, about half of the project will be implemented by the end of the year, and the balance next year (except for maintenance, which will continue until 2014.)
A contract worth NIS 143 million is no simple matter for a company like C. Mer. Last year, its revenue reached NIS 531 million, therefore this contract is worth 25% of its annual revenue. C. Mer finished the first quarter this year with revenue of NIS 139.6 million and a net loss of NIS 6.9 million.
C. Mer's share price rose 2.4% by early afternoon to NIS 35.23, giving a market cap of NIS 266 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011