T-Netix (Nasdaq: TNTX) stock rose more than 50 percent Friday after the company announced a contract with US West (NYSE: USW) worth up to $25 million.
Shares of T-Netix were up 2 13/16 to 7 9/16 on Friday morning. The provider of call-processing technology and jail communications services said its T-Netix Internet Services division has been signed as a reseller of Internet services to US West.net and !nteract customers, for 16 months with a margin ranging between 3 percent and 6 percent.
T-Netix expects $20 million to $25 million from the deal, bringing the company's total revenue to more than $100 million next year. T-Netix had $38 million in 1998 revenue.
"One of our major goals since the completion of the merger five months ago was to expand out of the inmate calling and corrections markets and provide new services to our existing telecommunication customers, which we have accomplished with this contract," CEO Alvyn Schopp said. "The contract teams us with one of the nation's strongest Internet players, especially for DSL, in the market."
T-Netix stock has generally traded between 4 and 7 for the past year.>