02 Maret 2012

EOS Awarded Defence Contract

02 Maret 2012

Electro-Optic Systems (EOS) R-600 remote weapon station (all photos : EOS)

Electro Optic Systems (ASX:EOS) has announced a new contract valued at $25 million for the manufacture and delivery of remote weapon systems over the next 30 monthsfor an existing customer.

Announcing the contract, the Chief Executive of EOS’ Defence Systems business, Mr Mark Bornholt, said:“This order is for our most advanced model of remote weapon system and brings to over 300 units the total number of orders for this model. It will be filled in EOS’ production facilities in Australia and the USA.

“This product has been in reliable production in the exact configuration now ordered for more than12 months and no changes to our supply chain or production processes will be required. This order will see production of that configuration continue with regular monthly shipments to late in 2014.

“We expect a significant proportion of this order will be produced in Huntsville, Alabama, under the consolidation of remote weapons system capabilities announced by EOS in December 2011.”

EOS CEO, Dr Ben Greene, said that the contract award was particularly satisfying as it is from an existing customer.“EOS is proud of its products and customer-focused culture, but the most important indicator of how well we embody these qualities is customer feedback and follow-on contracts.

“The order raises EOS’ backlog of confirmed, unfilled orders for all products and services to around $45 million deliverable over the next 2.5 years. This backlog is around 1.5 years of revenue at current performance levels, and is strong in terms of past sales performance.

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