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Digital security provider DISA says Q4 sales more than doubled
DISA Ltd, an electronics service provider, on Wednesday said the combined code sales from its point-of-sale activation and single-scan serialisation for the fourth-quarter ended June 30, 2018 more than doubled to S$74,112 from a year ago.
This is due to the increase in product categories from new suppliers and higher sales volume.
DISA is known for developing an anti-theft protection technology using encrypted codes on consumer electronic products. It removes the need for security devices to be attached to products, by assigning a personal identification number (PIN) code to items such as consumer electronics - at the point when they are manufactured.
The item will be "locked" by the time it reaches a retailer's shelf, which means it can be displayed without the usual safeguards, such as anti-theft cords, that often deter customers from trying out a product, a The Straits Times report in 2016 showed. DISA has gotten retail giant Walmart to accept its technology in its stores.
A KGI Securities report said in June that DISA, as the first mover providing a digital point-of-sale activation solution, should get at least three top US retailers on its platform.
"The key risks are that slow user adoption and a breach in DISA's encryption could lead to reputational damages and a fall in revenue. The concern is if DISA fails to scale and to cover its burn rate," it said. "It is at an inflection point and must convince retailers and suppliers to adopt its technology as the industry standard."
DISA's full-year results will be released by Aug 29, 2018.
Shares of DISA closed unchanged on Wednesday at 0.9 Singapore cent.