Electro Optic Systems

EOS Wins Major Weapon Systems Contracts

EOS Wins Major Weapon Systems Contracts

Electro Optic Systems

Electro Optic Systems Holdings Limited (ASX:EOS) has been awarded significant new contracts for its remote weapon systems since July 2009, requiring the delivery of up to 221 units to three existing EOS customers. The delivery schedules span 24 months commencing in early 2010, with 56 units to be delivered by June 2010.

The recent contracts, worth up to $52m, are the largest aggregate order received by EOS in its own right for remote weapon systems in any half-year since the initial product was developed by the company over 10 years ago.

EOS CEO Dr Ben Greene says the scope of the orders is especially positive because they cover both the EOS R-400 and R-600 products and customers who are actively deploying the products are expressing their satisfaction through repeat orders. "Customers have emphasised in particular the unmatched long-range effectiveness of EOS weapon systems," says Greene. "The orders will require monthly shipment rates to gradually increase to their highest levels since mid-2007, but EOS production is well prepared for this required expansion."

In the past two years the company has actively engaged with selected new markets for its remote weapon system products. Allowing for acquisition schedules typical in its industry, EOS expects orders from new customers to supplement those from existing customers from 2010.