Micro-X (ASX: MX1) (OTCPK: MCRXF) shares are up 9.5% today in Australia. MX1 shares have risen on the back of an extension of their contract with the Department of Homeland Security, DHS. In more detail this is the Transportation Security Administration, TSA - entirely everyone's favourite group of gropers. The aim of the technological programme is to enable airport security to be done as with supermarket self-checkout - that is, to banish the groping from the airport experience. We can all hope that it's a success therefore.
As background on Micro-X: “Micro-X Limited designs, develops, and manufactures lightweight carbon nano tube-based X-ray products for the healthcare and security imaging markets in Australia. The company offers rover veterinary, a mobile X-ray machine to diagnose and treat animals for general veterinarian practices; Carestream DRX Revolution Nano” and so on. The point is that the company is using those carbon nanotubes to produce a more accurate x-ray surveillance. That can obviously have its uses in airport security. Thus the work with TSA and DHS.
Micro-X share price from ASXThe specific contract here, it's important to note, is still a development one. This is not the nirvana of the technology being rolled out at all US airports or anything: “The Passenger Self Screening Project relates to DHS and TSA's future vision of replacing the current conveyor belt design for the screening of passengers' carry-on luggage with a bank of multiple ‘self-service' security stations capable of scanning passengers and their carry-on luggage together. This concept is based on the idea of self-service checkouts at supermarkets, moving from a staffed conveyor system to a smaller and automated self-service system to increase throughput, improve staff efficiency, and improve passenger experience. This concept is enabled by Micro-X's miniaturized CT technology.”
As we all need to grasp at this stage this is still a rumination over whether the technology will really work or not. It is, of course, good news for Micro-X that this next stage is being taken. If it weren't then the development to date would be seen as a failure. But it's also worth our recalling that bureaucracies move slowly, this isn't, other than the amount in this specific contract ($21 million in those bijou Australian dollars), anything more than a hope of revenue at some unknown future date.
Thus the relatively muted MX1 share price response to the news. As we say, this is a further development contract, not a roll out to airports across the country
