Norwood Reports $168K Quarterly Receipts, Launches OpenSpan, Advances CSP Deals
Norwood Systems has launched its CogVoice OpenSpan platform on Microsoft Azure, deepening global CSP engagements and securing additional funding to support its AI-driven voice technology expansion.
- Launch of CogVoice OpenSpan AI voice platform on Microsoft Azure
- Ongoing negotiations with a major Australian Tier 1 Communications Service Provider
- Secured $735,000 in funding plus $309,000 R&D loan post-quarter
- Stable half-year cash receipts and improved net operating cash outflow
- Board appointments including new Chair Dr John Tarrant and Director Paul Covich
Strategic Launch of OpenSpan on Azure
Norwood Systems (ASX: NOR) has taken a significant step forward in its AI voice technology journey with the December 2024 launch of its CogVoice OpenSpan Application Server platform, hosted on Microsoft Azure. This next-generation AI voice 'enablement' platform is designed to bridge traditional telecommunications infrastructure with advanced cloud-based AI services, enabling CSPs to rapidly deploy features such as in-call fraud detection, automated call summarisation, and real-time translation.
Built on Azure's hyperscale infrastructure, OpenSpan offers modular integration for both 4G and 5G networks, positioning Norwood as a key innovator in the telco AI space. The platform's flexible monetisation model allows CSPs to commercialise new AI-powered voice services efficiently, leveraging Azure AI Speech and OpenAI technologies.
Progress in Commercial Negotiations and Global Engagements
During the quarter, Norwood continued negotiations with a major Australian Tier 1 Communications Service Provider to refresh their core voicemail platform using Norwood's CogVoice Voicemail solution. This ongoing dialogue underscores the company's potential to secure a significant contract that could validate its technology in a critical market.
Internationally, Norwood is advancing pilot testing of its Open Services Media Gateway platform with a Tier 1 US operator, focusing on media-load and codec transcoding validations scheduled for early 2025. Additionally, the company is engaged in proof-of-concept discussions with multiple CSPs across Europe, the Middle East, and the APAC region, facilitated through collaborations with Microsoft CSP account teams. Longstanding client Spark NZ continues to provide stable recurring revenue, reinforcing Norwood’s foothold in the region.
Financial Position and Funding Initiatives
Norwood reported cash receipts of $168,000 for the December quarter, with half-year-to-date receipts reaching $574,000. The company improved its net operating cash outflow year-on-year, reducing it from $872,000 in H1 FY2024 to $387,000 in H1 FY2025, reflecting tighter cash flow management amid ongoing R&D investments.
To support its growth and R&D efforts, Norwood secured $735,000 in additional funding during the quarter, including a $505,000 convertible note issue carrying a 10% annual interest rate, maturing in December 2025. Post-quarter, the company accessed a further $309,000 from an R&D loan facility to fund expenditures from July to December 2024. These financial measures provide Norwood with critical runway as it scales its AI voice platform offerings.
Governance Enhancements and Strategic Outlook
In governance developments, Norwood appointed Dr John Tarrant as Chair in January 2025, bringing experienced oversight to guide the company’s expansion into new markets. A Commercial Subcommittee was formed to accelerate sales growth and innovation, while new director Paul Covich was added to strengthen investor relations and support future growth initiatives.
CEO and Founder Paul Ostergaard emphasized the company’s commitment to delivering world-class AI voice solutions and closing contracts with major global clients. Norwood is also preparing to showcase OpenSpan and related agentic applications at MWC Barcelona in March 2025, a key event that could catalyse further commercial traction.
Looking Ahead
Norwood’s strategic focus on AI-driven voice services, combined with its strengthened financial position and governance, sets the stage for a potentially transformative year. The market will be watching closely as OpenSpan’s adoption by Tier 1 CSPs unfolds and as the company leverages its partnerships with Microsoft and AWS to expand its global footprint.
Bottom Line?
Norwood’s OpenSpan launch and funding boost position it for pivotal contract wins and AI voice market expansion in 2025.
Questions in the middle?
- Will Norwood secure the Tier 1 Australian CSP voicemail contract and on what terms?
- How will OpenSpan’s AI capabilities differentiate Norwood in a competitive telco market?
- What impact will upcoming MWC Barcelona demonstrations have on global CSP partnerships?