ASX-listed Elsight Limited has received a USD380,000 initial purchase order from a major defence contractor to develop and supply the first batch of a new battlefield communication device that forms an integral part of a large strategic program.
The first order includes developing and supplying a 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 the contractor’s estimated expected volumes and pricing built into the quotation.
Should those orders proceed, Elsight expects that revenue would grow to at least USD5 million in the next one to two years. This would materially increase company revenue which was USD1.1 million in the first six months of 2024. This is the biggest order that Elsight has received from a single defence customer to date.
The new product is based on the experience Elsight gained 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.
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.
“We are thrilled to achieve this significant milestone and support this innovative approach to communicate in the most challenging environments,” said Elsight CEO Yoav Amitai. “This order represents another validation of the value and development qualities that Elsight brings to today’s defence market. 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.”
Elsight says the order is another validation of its strong value and experience in the growing defence market.
