KEY POINTS:
Wellington Drive Technologies says it has signed a $1.5 million long-term contract to provide its efficient motors to an unnamed international company.
The company would launch the products containing the motors this year and early next year.
Manufacturing revenue was expected to grow from 2009 from the long-term agreement, WDT managing director Ross Green said.
"This agreement is significant as Wellington's technology will be in products available through an established, global sales organisation.
"These distribution channels should enable fast revenue growth as the products come available and accepted by end users."
WDT had signed a confidentiality agreement covering the name and other details of the company, to protect both parties' competitive positions.
The company was not a household name, and not based in the United States, but was well-known in technical circles, Green said. It had approached WDT.
"The sort of products that they're dealing with are used everywhere, and essentially they're everywhere as well."
WDT had spent nine months on development work last year anticipating the contract completion, which would be recorded as revenue.
WDT is not greatly affected by the high New Zealand dollar as it produces mainly in China and Malaysia. The Auckland-based company was running at capacity, and was expanding so it had an adequate buffer.
"I think really what we're seeing is the fact that we've been out in the market with truly commercial products for a couple of years, and I think in hindsight we're going to say this is the year when the company began generating business on a truly commercial scale."
Shares in WDT closed up 1c to 45c.
- NZPA
