Key Highlights:
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- Elsight secures material order from major defence contractor for the development and supply of the first batch of a new cellular communication product
- Initial Purchase Order represents Elsight’s largest defence deal to-date and could result in orders of US$5 million in the next 1-2 years
- Order is first phase of a strategic multi-year program in partnership with leading defence contractor, with anticipated growth starting in 2025 and beyond
Elsight Limited (ASX: ELS) the carrier-agnostic, connectivity solutions company, is pleased to announce the receipt of a $US380,000 (~A$562,000) Initial Purchase Order from a major defence contractor, to develop and supply the first batch of a new battlefield communication device that is an integral part of a large strategic program.
The first order includes the development and supply of a first small early batch of units. The new product is envisaged to be deployed by defence force end users as part of a much larger strategic program scheduled to begin in 2025.
Elsight has provided the contractor with a non-binding quotation for further orders starting in 2025 based on expected volumes estimated by the contractor and pricing built into the quotation.
Should those orders proceed it is expected that revenue would grow to at least US$5 million (A$7.3 million) in the next 1-2 years. This would materially increase company revenue which was US$1.1 million in the first six months of 2024.
This is the biggest order that the Company has received from a single defence customer to date.
The order is an example of the potential in the defence market which has a much longer sales cycle but offers significantly larger revenues than those previously enjoyed by the Company.
Based on the Elsight Halo expertise
The new product is based on the experience Elsight achieved with its field-proven Halo, a highly reliable multi-link communications system with over 250,000 hours logged. The new product will be added to the Company product portfolio to serve existing and new customers in both commercial and defence sectors.
“We are thrilled to achieve this significant milestone and support this innovative approach to communicate in the most challenging environments. This order represents another validation of the value and development qualities that Elsight brings to today’s defence market,” CEO of Elsight Yoav Amitai said.
“After a long evaluation process, Elsight was chosen as an essential partner in this long-term program, and we expect to reap the benefits of much larger programs in the years ahead.”
The new product is a key element of a strategic program
The new communication device will leverage cellular and other communication technologies to support various applications of both portable and stationary sensors.
It offers a new way to communicate. The device has been designed and developed for high-scale deployments in large quantities.
In addition, this new product will be designed to support other existing and new customers in various other industries.
Another Validation for Elsight Value in the Defence Market
This order was received after an extensive evaluation process against a large group of competitors of all sizes. It is another validation of Elsight’s strong value and experience in the growing defence market. The new product is designed to meet all defence standards and regulations globally.
Authorised for release by the Board of Directors of Elsight Limited.
