Yesterday I discussed how xG Technology scored with a big $6M win and today the company has announced Cornet Technology has entered into an agreement with xG to resell $5M worth of the company’s products to the government and DoD.
Cornet Technology, Inc. is a privately-held concern which designs, engineers, and manufactures a wide range of advanced command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) solutions targeted at U.S. and international defense and aerospace agencies.
The deal covers part of an end-to-end two-way video streaming solution for vehicles that is currently under development.
For a company which so many predicted wouldn’t make it – the potential for $11M in sales in two days is pretty impressive. Still, while the news of this partnership is great for company backers and employees, it isn’t a done deal quite yet.
A few other points. If the company is successful selling to the government via this deal - it could do exceedingly well selling to other governments around the world and to more US agencies as well. Also, M2M could be a market which can benefit from the company's solutions.
On the negative side of the ledger is the potential for ubiquitous WiFi coverage and Super-WiFi technologies to make the company's solutions less valuable over time.