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LAS VEGAS, July 2, 2013 (GLOBE NEWSWIRE) -- Inova Technology (OTCBB:INVA) has announced that through its wholly owned subsidiary, Desert Communications, it has a current backlog of awarded contracts worth $42 million.
Inova CEO, Adam Radly, said, "The Company's contract backlog is very healthy and gives us and our stakeholders a lot of visibility into our future revenue."
The majority of the contracts are for network solutions projects for school districts in the Texas area and involve funding from the federal Erate program. The sequence of events for Erate projects is as follows:
School districts request bids on a scope of work for specific projects
Companies like Desert Communications submit proposals
School Districts award the contract to winning bidder (all of the contracts referenced above have at least reached this level)
School districts attach the winning bid to the scope of work for the project and submit it to Erate for funding approval.
School districts receives funding
School districts and Desert schedule project implementation
Desert completes project.
Approximately $12 million of the contracts referenced above have already been approved for funding and are in the process of being implemented or are scheduled to commence implementation. The remainder have been submitted for funding approval. All Erate projects move through the sequence outlined and each project is at a different stage.
Investors and other interested parties should be aware of the following:
The sales cycle described above can range from 18 months to 36 months (or more)
Although Desert has been winning such contracts consistently for more than ten years, there is no guarantee that Desert will continue to win such contracts in the future.
Some projects may not be approved for funding for many reasons.
The awarded contracts include more than one hundred projects for more than twenty school districts. Projects range in size from as little as $10,000 to more than $5 million. Some small projects may be completed within one to two weeks while other larger projects may be implemented over multiple months or years. As a result of this variability the Company plans to continue to announce the commencement and completion of major projects.