Israeli company Dragontail Systems (ASX: DTS), traded on the Australian Securities Exchange, today announced substantial orders from Domino's Pizza Enterprises (ASX:DMP), worth over $1.2 million, for its AI camera system to be based in Domino's Pizza stores. In response, the company's share price shot up 13.6%.
Dragontail Systems' Algo solution enables fast food restaurants to optimize deliveries management. The orders were received as part of an existing agreement between the two companies dating from 2017.
Dragontail's cameras use artificial intelligence technology that, according to the company, makes it possible to inspect instantly the quality of every pizza baked at the branch - a kind of electronic eye that photographs the pizza from above to identify its type, add-ons and temperature. The customer can receive real-time updates on the pizza ordered.
Orders worth $1.2 million are significant for the company, whose revenue in the first half of 2018 totaled $310,000, which represents 260% growth over revenue in the first half of 2017. The results were released a few days ago, and the company said at the time that it expected continued growth this year.
At the end of the first half of 2018, Dragontail had $2.7 million cash (A$3.6 million), after two fund raising rounds in Australia. It made its IPO in December 2016, raising A$6 million, and it made a secondary offering in October 2017, raising A$8.8 million.
Despite the rise in the share price today, it is still low in relation to its level in the two offerings. It closed at A$0.125, giving Dragontail a market cap of A$24 million (NIS 61 million), whereas the IPO was at A$0.20 per share, and the secondary offering was at A$0.22.
Dragontail was founded by Yehuda Shamai, who set up and managed Domino's Pizza in Israel, and who is currently a franchisee of Pizza Hut. Shammai is non-executive chairman of Dragontail. The managing director is Ido Levanon. Among the company's customers are Pizza Hut in Israel, Canada and Cyprus, KFC in Asia, Cara Operations in Canada, and Domino's Pizza.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2018
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