MiX Telematics Scores Deal from Oilfield Service Company

MiX Telematics (NYSE:MIXT) announced on Wednesday (October 17) that an oilfield service company will begin using its fleet management solution across 750 vehicles.

The company, which is a provider of fleet and mobile asset management solutions, said that the oilfield company upgraded from a plug-and-play automatic onboard recording system (AOBRD) to take advantage of the MiX Fleet Manager.

It was said that the MiX solution provides the oilfield company with compliance, safety and efficiency features apart from the MiX Fleet Manager’s electronic logging device components, such as driver safety monitoring.

“This client places high emphasis on safety and quality, and our solution can help in both areas, plus compliance,” Charles Tasker, COO at MiX Telematics, said in the release. “We’re looking forward to working closely with them to ensure they get maximum benefit out of their telematics investments.” 

According to MiX, safety was a top priority for the company as it realised that its ABORD system did not help with monitoring and coaching drivers on safe driving behaviors.

Mix provides Software-as-a-Service (Saas) solutions to wide range of customers. In early October, the company announced that it had surpassed 700,000 subscribers in more than 120 countries. The company added 22,000 new subscribers in its second fiscal quarter ending September 2018.

“Our growth – driven by new customer acquisitions and retention – is a testament to our brand being recognised as a trusted provider of telematics solutions, globally,” Stefan Joselowitz, CEO of MiX Telematics, said in the release.

The unnamed oilfield service company was the second biggest win for Mix Telematics as it announced a “major” customer in North America on October 3.

Mix said that a global fast-moving consumer goods (FMCG) company in North America will implement Mix’s telematics solution across its 1,500 vehicles as the FMCG wanted to reduce accidents by improving driver behavior.

“This further demonstrates our ability to meet the requirements of large, premium customers globally, no matter their industry, fleet size or makeup,” Tasker said in the October 3 release.

Following the announcements, shares of MiX Telematics are up 2.8 percent overall in October, closing the trading session on Wednesday at US$14.39. However, its shares are down 1.71 percent over the one-day period.

The company’s shares have gained 12.77 percent year-to-date. Mix Telematics has a “sell” ranking on TradingView with 11 verticals against, eight neutral and seven in favor. On TipRanks, the company has a “moderate buy” ranking with an analyst target price of US$25.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.