An update from Hansen Technologies Limited (ASX: HSN) has propelled the company's share price to a 52-week high today. At the time of writing, the billing software provider's shares are trading 17.2% higher to $4.91. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has swung into the negative, down 0.1%.
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New contract, who this?
After the market closed yesterday, Hansen Technologies snuck in an announcement that contained uplifting information for shareholders.
As previously reported this morning, the company signed a significant agreement with German-based Telefonica. The agreement entails Telefonica using Hansen's Cloud Native Communications product suite.
Furthermore, the important details of the agreement are the 5-year fixed term, amounting to expected revenue of $25 million for Hansen.
Factoring in the additional revenue, Hansen updated and upgraded its guidance for the FY21 full year.
Hansen share price having a blast
Since 2016, the Hansen share price has been trending downwards. Investors seemed to have fallen out of love with the company's technology, as earnings appeared to stagnate.
With the sudden influx of all the new fandangled instalment payment systems gaining more interest, the simple billing system had been forgotten.
Yet, today's large contract win has rejuvenated Hansen's share price, with it now the highest it has been in roughly 4 years.
Hansen's market capitalisation now stands at $834 million, making the billing system provider a small-cap stock.
