Retalix wins first major contract in Australia

Deal with Woolworths estimated to generate $4-7m. in revenue in 7-10 years.

Ra'anana-based Retalix has won a multi-million dollar contract with Woolworths Australia to supply its Retalix StoreLine(TM) in-store solutions across all of the group's chains, the two companies said Monday in a joint statement. While the value of the deal was not disclosed, Dani Moshaioff, Chief Financial Officer at Retalix, said in an interview that "customers of this magnitude generate between $4 million and $7m. in revenue per year on similar agreements." The average life span of such a project is between seven and 10 years, he added. It's not the company's first entry into Australasia, however, as Moshaioff noted that Retalix already has several customers in Australia and New Zealand. It also established a new Software Competence Center in Sydney last year to provide support and development facilities. The significance, Moshaioff said, is that it is the first tier-1 company in the region that they will be working with. Woolworths is one of Australia's largest retailers, with a food, liquor and grocery market share of 28% and annual sales of over $20 billion. Under the agreement, Retalix will deploy StoreLine as a consistent platform throughout all Woolworths stores in the Asia Pacific region. Starting with 730 Woolworths Supermarkets and 120 BIG-W general merchandise stores, the first phase of the project involves the solutions implementation in 850 stores and 14,500 point-of-sale terminals. Having completed an initial pilot program in Woolworths and BIG-W stores, the project is scheduled for rollout through 2006. Retalix StoreLine is a Windows(TM)-based in-store solution that offers retailers hardware-independent point-of-sale and front office applications and the ability to address extensive in-store functionality requirements. The company specializes in providing software solutions to retailers and distributors and won its first major deal from UK retailer Tesco in July last year in a similar contract to the Woolworths agreement. Following the agreement, shares in Retalix rose 0.18% to NIS 114.4 in Tel Aviv and by 0.17% to $24.26 in afternoon trade on the Nasdaq.