The defence technology company has issued an update on the performance of its recently acquired subsidiary EM Solutions.
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ASX-listed defence technology company Electro Optic Systems (EOS) has issued an update to shareholders regarding the integration of Brisbane-based communications provider EM Solutions, which it acquired in late 2019.
According to EOS, EM Solutions has had a “successful first year”, generating growth at over 20 per cent year-on-year in both revenue and earnings before income and tax.
The group claimed that EM Solutions is expected to meet all scheduled shipments before year’s end, despite supply chain disruption caused by the COVID-19 crisis.
Over the course of 2020, EM Solutions has delivered its tri-band Cobra satellite communications terminals into the Royal Australian Navy’s Anzac frigate upgrade and new Offshore Patrol Vessel programs, and has also shipped the first of a series of Cobra terminals as part of a new $14 million order for three NATO Navies.
The EOS subsidiary has also secured a $3 million contract from a US prime for the supply of manpack satellite terminal, which will incorporate EM Solutions’ Ka-band transceivers.
According to the group, EM Solutions currently has a confirmed order backlog equivalent to 14 months’ production, and is in contract discussions with foreign defence forces that could increase the backlog to two years.
“The team at EM Solutions have worked exceptionally hard to deliver a fantastic result, demonstrating their dedication to their clients, adding to EOS’ proprietary technology base, and maximising the synergies between EM Solutions and the broader EOS group,” Glen Tindall, CEO of EOS Communications Systems, said.
“As government customers continue to evolve towards multi-orbit, multi-band satellite communications, EM Solutions is uniquely positioned to deliver products that provide maximum flexibility and resilience.
“We will be developing next generation satcom-on-the-move terminals that can support the optical technology that will be deployed by the EOS SpaceLink MEO Satellite Relay System.”