Software Radio Technology (LON:SRT), the AIM listed company behind a range of identification and tracking technologies used by maritime vessels, has picked up new orders for its AIS Class A product worth a total of US$750,000 during the past week. The orders are follow-on orders from existing customers and are destined for various markets around the world over the next three months.

SRT said that national mandates around the world were continuing to create a demand for all types of AIS. Earlier this year SRT added a Class A product to its established range of other AIS devices, thereby enabling it to meet the requirements of any market. In June, the company’s technology was given formal EU, US and Canadian certification, meaning that it could start shipping the units to customers. At the same time, the company has continued to invest in its core technologies, developing a new AIS architecture which will facilitate the significant cost and size reduction of AIS products for the benefit of its customers and end users whilst also improving SRT's profit margins.

Simon Tucker, SRT’s chief executive, said: “The global AIS market continues to grow and, as evidenced by this and other orders, our products and customers are being well received.”

AIS is a system which transmits and receives data via VHF. Following a 2002 IMO (International Maritime Organisation) mandate, Class A transceivers were required to be fitted to most vessels worldwide over 300 tonnes. The Class A incorporates a number of sophisticated features and functions not specified in the simpler, lower cost Class B devices and as a result is sold at a higher price. However, the Class A transceiver is considerably more complex than a Class B transceiver and requires much more rigorous formal testing and approvals, reflected in the fact that SRT began the process back in 2008.

Market demand for Class A transceivers is driven by commercial factors such as operational efficiency and safety, as well as specific mandate requirements around the world. For example, over the next 18 months the EU Inland Waterway Mandate requires certain commercial vessels operating along the Rhine to install an approved Class A transceiver by the end of 2011, thereby creating a single market worth approximately US$30m over the next 18 months.

Shares in SRT were trading at 2.7p in June 2009…

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