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DXN (ASX:DXN) signs two new contracts worth a combined $1M
A DXN Cable Landing Station. Source: DXN
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  • Data centre specialist DXN (DXN) has signed two contracts with Sub.Co and Solomon Islands Submarine Cable Company (SISCC) worth a combined $1 million
  • The first contract, signed with Sub.Co and worth $650,000, will see DXN build a Cable Landing Station at Cocos Keeling Island
  • This will be part of the Oman Australia Cable system, a 9800-kilometre system of undersea cables connecting Perth to the capital of Oman in the Middle East
  • Cable Landing Stations are typically the point where undersea cables meet on-land networks and play an important role in powering and protecting the underwater cables
  • DXN's second contract, signed with SISCC and worth $350,000, will see the company supply a modular data system to Honiara in the Solomon Islands
  • SISCC is a government-backed company that owns and operates the Solomon Islands' submarine cable service
  • Shares in DXN are up almost 8 per cent this afternoon at 1.4 cents each

Data centre specialist DXN (DXN) has signed two contracts with Sub.Co and Solomon Islands Submarine Cable Company (SISCC) worth a combined $1 million.

Under the first of the two contracts, worth $650,000 and signed with Sub.Co, DXN will build a Cable Landing Station (CLS) at Cocos Keeling Island as part of the Oman Australia Cable system.

This system connects Perth to Muscat, the capital city of Oman in the Middle East, through 9800 kilometres of undersea cables.

The CLS contract is an extension of a previous contract signed between DXN and APX Parters, which was later novated to Sub.Co.

The second of today's contracts, signed with SISCC and worth $350,000, will see DXN supply a modular data centre to Honiara in the Solomon Islands.

SISCC is a joint venture entity owned by the Investment Corporation of the Solomon Islands and the Solomon Islands Nations Provident Fund — making it a 100-per-cent government-backed company. SISCC owns and operates the Solomon Islands' submarine cable services.

DXN Chief Executive Matthew Madden said the company is "thrilled" by both of today's contracts.

"The contract with Sub.Co is an extension to an existing contract announced in December 2020 and demonstrates the continued trust in our capability and teams' performance in delivering," Matthew said.

"The contract with SISCC is a brand-new relationship and demonstrated how DXN's prefabricated modular data centre reputation continues to grow in the region," he said.

What is a CLS?

A Cable Landing Station is typically the point where underwater ocean cables meet on-land networks.

With millions of kilometres of cables under the ocean connecting every continent, Cable Landing Stations play an important role in powering and protecting the undersea fibre optic cables and distributing the data carried through such networks.

"Where submarine networks meet terrestrial networks, CLS need to be designed and built to rigorous standards to last the design life of the cable systems and longer," DXN said.

The company said its CLS units can designed to withstand hard environmental conditions, including seismic events, tropical cyclones and corrosive coastal areas.

Shares in DXN are trading 7.69 per cent higher in late-afternoon trade, worth 1.4 cents each at 3:24 pm AEST. The company has a $20 million market cap.

DXN by the numbers
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