TERP has signed multiple new contracts with maritime schools in the Phillippines. Among these is the first public high school utilizing TERP technology. The new agreements kick off a restart of systematic sales.
The company started systematic sales in April 2021, resulting in a revenue leap when the school year started last fall. At the time, we expected to launch new features during the school year to support the promised value proposition. However, we failed to deliver on time and had to pause sales. We also temporarily lost some paying customers for this school year.
We had to rebuild our technology team to get on track again. Now we have a smaller but more experienced team. We have worked with company values to better deal with the cultural differences between Norway and the Philippines. The current team is solid and can deliver what we need to restart systematic sales. The productivity in the technology team has multiplied even though we have far fewer developers.
A leaner and more productive organization makes TERP adapt well to the new capital market. We also make a strategic adjustment by prioritizing break-even over growth. As maritime education is currently our most important market segment, and the school year starts in August, the following six months are essential for sales.
The new contracts are with schools and colleges connected to Philippine Transmarine Carriers Inc. (PTC), the largest manning company in the Philippines. Initially, we had an agreement with the maritime manning company Abojeb, but after PTC acquired them, the collaboration took a different direction. PTC has partnerships with multiple schools providing maritime education, and we expect to sign more of their partner school going forward.
The three new signings are with Merchant Marine Academy of Caraga, Negros Maritime College Foundation, and Sto. Rosario National High School. The latter is a public high school that is a significant signing for two reasons. First, this is the first public school we have signed in the Philippines. All other customers are private. Second, the contract includes upgrading PTC´s learning resources to utilize the TERP technology fully. Content is essential when addressing any new market segment, and we hope this will be the first of many high schools to take advantage of our technology. Entering both public schools and high schools increases the market potential significantly.