A deal agreed in a far-off country was the spark that ignited chemical analysis device maker 908 Devices (MASS -2.56%) this week. The company’s stock burned hot, finishing the period over 18% higher in price, according to data compiled by S&P Global Market Intelligence.
A Central European deal
Before market open on Wednesday, 908 Devices announced — no doubt happily — that the Romanian Customs Authority has deployed 27 of the company’s MX908 devices throughout its organization.
Image source: Getty Images.
These are handheld machines that pack sophisticated chemical analysis capabilities; the company claims they can identify a range of chemical substances in a matter of seconds. According to 908 Devices, this gives users the ability to detect even trace amounts of compounds on surfaces such as vehicle exteriors and containers.
The company said it delivered all 27 MX908s to the central European country earlier this year. Its deal was done through a program headed by the European Union, of which Romania is a member country. That program, Customs Control Equipment, aims to assist E.U. nations in obtaining the latest, state-of-the-art border control assets.
In its press release touting the deal, 908 Devices quoted CEO Kevin Knopp as saying, “The Romanian Customs Authority has taken a proactive step to arm its officers with fast, trace chemical identification, and we are committed to supporting their efforts to ensure enhanced safety and security at the border.”
Reputation enhancer
One piece of information missing in 908 Devices’ press release was the financial particulars of the Romania deal. It’s hard to gauge the true impact of such an arrangement on the fundamentals without getting some sense of how large it is in terms of revenue and/or profitability.
Regardless, this is undoubtedly a win for the company; not only will it bring in revenue, but transacting with a high-level governmental authority can only enhance its reputation and (hopefully) draw in new clients. Investors were right to cheer this news.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
