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#ASX Announcements
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Added one year ago

EOS and Washington H. Soul Pattinson have agreed on a New Term Loan Facility of three years for $35m, with 18 month $15m Additional Working Capital Facility. The 12month $20m Existing Working Capital Facility, announced on 7 September 2022 remains in place.

These are expensive loans for EOS, with the Total Principal available to be drawn under these facilities being $70m. If fully drawn, the arrangements require EOS to repay $127m. It buys management some time, but question marks surround SpaceLink, and if no strategic investors are found before the end of 2022, EOS is planning to cease any further investment in SpaceLink.

More details below:

REFINANCING 

Background On 6 September 2022, the Company agreed a short-term $35m term loan facility (“Existing Term Loan Facility”) with WHSP, that expired on 26 September 2022, as well as a $20m 12month working capital facility (“Existing Working Capital Facility”). As disclosed via announcements on 26 September 2022, 4 October 2022 and 7 October 2022, WHSP has provided further extensions of the Existing Term Loan Facility maturity date, with the latest extension expiring on 12 October 2022.  EOS has actively explored a number of financing paths for several weeks. Following extensive work, it was determined that the new financing arrangements entered into with WHSP is the best available alternative to provide the funding certainty needed to support EOS’ restructuring plans and future growth. 

BUSINESS UPDATE

The Company has continued to execute the actions arising from the recent Strategic Review. This includes executing the Program of Change outlined in the Investor Presentation dated 8 September 2022. This continues on schedule, including the Restructuring & Reorganisation work to reduce costs.  With SpaceLink, the work to seek strategic investors is continuing. In the event that funding from strategic investors is not secured before the end of 2022, EOS intends to cease further investment in SpaceLink.  The EOS new management team continue to complete a thorough re-assessment of the financial outlook for the Company, including an assessment of evolving risks and opportunities and any impacts on revenue. An update on the outlook for the Company is expected to be provided once this reassessment has been completed.

#ASX Announcements
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Added 2 years ago

Update on Financing – Further Extension 

Electro Optic Systems has recently made several announcements regarding financing arrangements with Washington H. Soul Pattinson, a major shareholder of EOS. These arrangements included an extension of the maturity date of a $35m term loan facility provided by WHSP, to 4 October 2022, and the provision of a $20m one year Working Capital Facility.

EOS today announces that WHSP has agreed to further extend the maturity date of the Term Facility from 4 October 2022 to 7 October 2022. The terms of Working Capital Facility remain unchanged. 

The Company continues to work with WHSP on a longer-term financing structure for EOS.

#ASX Announcements
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Added 2 years ago

Following on from @AUROPAL's straw from yesterday, EOS has finally released their H1 2022 Results and it is not pretty.

They have reported an operating loss after tax of $98,945,653 for H1 2022 (30 June 2021: $11,727,207) and said that a significant component of the loss, $54,436,435, is attributable to the impairment of assets and onerous contracts held in SpaceLink Corporation. Also included in the loss after tax is an income tax benefit of $6,580,001

Revenues from ordinary activities were $53,776,311, representing a 45% reduction on the prior comparative period (30 June 2021: $97,820,154). 

EBITDA (excluding impairment) was a loss of $34,698,825 compared to an EBITDA loss of $288,772 in the prior comparative period. 

EOS has said that the underlying H1 2022 EBIT loss (excluding impairment and onerous contract expense) was driven by: delayed revenue recognition arising from supply chain disruption, a cost structure larger than required for the current level of revenue. This is being addressed as part of the organisational restructure being implemented following the strategic review & Significant operating expenses for SpaceLink ($15m) and development and testing for new directed energy products ($3m).

The Company also announced the entry into a financing agreement with major shareholder, Washington H. Soul Pattinson and Company Limited. WHSP has refinanced an existing $35m loan (on a short term basis) and provided an additional $20m working capital facility to support the restructure of the Company’s core Defence and Space business. 

The Company is also facing these headwinds:

  • Working capital will remain tight until investment in contract assets can be unwound back to cash. (Refer note 1c ‘Financial Statements going concern’ in the Appendix 4D).  The Company has entered into a refinancing arrangement with WHSP (described below) for the provision of short-term working capital, but, in the medium-term, cash is expected to be recovered by converting the contract asset to cash under existing contracts.
  • Market capitalisation of the Company has fallen substantially over 30 months, reducing scale. This may mitigate against larger contract awards in some markets.
  • Inflation will impact the cost of working capital as well as increase the profit risk on larger long-term contracts. The Company is negotiating staged procurements for some larger programs to reduce this risk (although there can be no guarantee that appropriate agreements will be reached). 
#ASX Announcements
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Added 2 years ago

EOS appoints new Chief Financial Officer 

EOS has announced the appointment of Mr Clive Cuthell to the role of CFO. Mr Cuthell has over 15-years’ experience as a CFO across a range of industries, including construction materials, chemicals, satellite communications and recently FMCG at Real Pet Food Co. Mr Cuthell also brings significant global experience, having been CFO of two listed global businesses and the local Australian CFO for the global cement major, Holcim. 

Peter Leahy, AC, Chair of EOS said: 

“Mr Cuthell’s background includes a strong focus on financial discipline, commercial acumen and managing stakeholders. This appointment continues the Board’s commitment to strengthening important capabilities to support the next phase of EOS growth.”

Mr Cuthell said 

“The EOS business has significant growth potential and I look forward to joining the team and helping to realise the next stage of the Company’s global growth”  

Mr Cuthell is a member of the Institute of Chartered Accountants of Scotland and a member of Chartered Accountants Australia and New Zealand. He is also a Graduate and Member of the Australian Institute of Company Directors. 

Mr Cuthell will commence on 5 September 2022. Until then, Mr Tahir Khan will continue in the role of acting Chief Financial Officer. The Board of Directors is grateful to Mr Khan for his ongoing support of the Company. 

#ASX Announcements
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Added 2 years ago

Disappointing to see EOS finished today down almost 26% ($1.14), after exiting their trading halt. Trading at a $1.14 is less than the received binding commitments for an institutional placement to raise A$15 million, at $1.20 per New Share, that will be applied to working capital and the Company’s near-term capital requirements. The Company intends to prioritise capital into the core Defence business. The Company has also announced an SPP, capped at A$2 million, at the same price as the Placement. 

Peter Leahy, AC, Chair of EOS, said:

“We welcome the support for the Placement and the new institutional investors to the register. On behalf of the Board of Directors of EOS, I would also like to thank our existing shareholders for their ongoing support.

The Placement provides additional capital to support EOS as we finalise our Strategic Review. We are pleased to offer the opportunity for eligible shareholders to participate in the capital raising, at the same price as the Placement, under the SPP.

We look forward to updating the market on the finalisation of the Strategic Review, including ongoing funding initiatives and growth trajectory.” 

#ASX Announcements
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Added 2 years ago

EOS successfully tests directed energy drone defence  

EOS has announced the successful qualification of its directed energy (“DE”) drone defence system.

EOS’ DE system uses a powerful laser as the directed energy source and has now successfully disabled Group 1 drones at an effective rate of 20 drones/minute at ranges beyond 1,000 metres, establishing a new benchmark for neutralising swarm drone attacks. This level of performance, for the first time, meets all current customer requirements for defence against emerging threats from swarms of lightweight drones.

The DE system has been developed as a key element of the EOS TitanisTM drone defence system, specifically to disable drones in Group 1, 2 and 3 and to neutralise sensors on all drones at very long range. Safety protocols at the testing facility and its associated airspace limited this qualification to Group 1 drones. Testing will be extended to Group 2 and 3 drones at a different location in Q3 2022.

At the completion of the recent DE qualification trials the Chief Executive of EOS Defence Systems, Grant Sanderson, said:

“The introduction of the DE capability provides the Titanis drone defence system with multiple options for dealing with each type of drone threat. EOS DE systems have already demonstrated the ability to disable or degrade a drone’s sensors to prevent intelligence gathering or precision engagement with lethal force by drones. These latest results show that large numbers of drones can be directly neutralised by EOS defensive systems.

The test and qualification procedures used by EOS are provided by current and prospective customers to ensure the developed capability will meet their operational requirements. Those procedures include up-to-date profiles of successful drone attacks against military assets and critical infrastructure so these can be prevented or mitigated in future. 

During 2022 a vast amount of military equipment has been destroyed in Ukraine by drones of the type that the Titanis DE drone defence system was developed to protect against. Drones are highly likely to be used at some time in offensive roles against Australia and its allies, and there is now strong demand for drone defence from customers with current weapon system delivery contracts with EOS.

For EOS customers no CUAS system has demonstrated superior operational flexibility, maturity, and affordability to Titanis. Two major end-users that are existing EOS customers are already co-funding trials and qualification efforts.” 

#ASX Announcements
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Added 2 years ago

Export Finance Australia issues USD$80 million letter of support for SpaceLink  

EOS this morning announced that it had received conditional finance support from Export Finance Australia for up to USD$80 million of debt funding for the initial satellite communications constellation (Block-0a) to be launched by EOS’ wholly owned subsidiary, SpaceLink Corporation Inc.

On 25 February 2022, EOS announced Block-0a as a lower-cost design solution for the initial constellation of SpaceLink, reducing the initial funding requirement from USD$700 million to USD$240 million and bringing the projected launch date in line with Federal Communications Commission licensing requirements.

The non-binding letter of support provided by EFA represents one third of SpaceLink’s total initial funding requirements of USD$240 million for its initial Block-0a constellation. The funding is consistent with EFA’s mandate of supporting the Australian Government’s Defence Export Strategy.

EFA’s funding is contingent on EOS and SpaceLink meeting EFA’s requirements in respect of:

  • An independent technical review of SpaceLink’s feasibility, including satellite technology, launch arrangements, pre-launch customer procurement strategy as well as a review of SpaceLink’s pre and post-launch insurances;
  • A comprehensive funding plan for SpaceLink including an agreed minimum amount of equity and an acceptable level of contingency funds;
  • Meeting EFA’s eligibility criteria, credit and risk requirements, including, but not limited to, “know your customer” and anti-bribery requirements and checks;
  • Satisfactory ongoing financial and trading performance for EOS; and
  • SpaceLink complying with EFA’s environmental and social risk policies, including SpaceLink receiving the required regulatory and environmental approvals for its onground infrastructure.


EOS announced on 17 March 2022 a strategic review to include future funding options for the Company’s SpaceLink, Defence and Space businesses. This conditional support from EFA will add funding options to that process.

#ASX Announcements
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Added 2 years ago

OHB intending to invest USD 25 million into SpaceLink as the cornerstone investor shows confidence in EOS & Spacelink. The market has reacted positively to this news, with EOS trading at $3.760 (+9.94%)

EOS and SpaceLink select OHB as preferred tenderer for satellite manufacturing contract

Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) and its whollyowned US subsidiary, SpaceLink Corporation (“SpaceLink”), are pleased to announce that they have reached a significant milestone in the manufacture and launch of the initial constellation of four high-capacity optical relay satellites. Following a comprehensive tender process, leading satellite manufacturer, OHB Systems AG (“OHB”), has been selected as the preferred tenderer for the initial constellation.

The parties are currently in advanced negotiations in relation to a contract for the manufacture and delivery of the initial constellation (“Contract”) and expect to sign an "Authorization to Proceed" next week. An Authorization to Proceed is the legal basis for the commencement of the project, and the finalisation of the Contract. The total value of the Contract is expected to exceed USD 300 million and the relevant terms and conditions of the Contract are expected to be legally finalized in the coming week (although there can be no guarantee that any agreement will be reached).

The parties have already commenced collaborative work on the basis of terms expected to be reflected in that Contract. The terms of the Contract are expected to require that OHB deliver the four high-capacity relay satellites in Q1 2024, ahead of the regulatory “Bring-Into-Use” deadline of June 2024. Payments to OHB under the Contract are expected to be based on the achievement of milestones over the 30 month term. It is expected that, on signing of the Contract, there will be no material conditions precedent outstanding.

The satellites to be manufactured by OHB include multiple subsystems and components, roughly half of which will be provided by selected US suppliers. The four MEO spacecraft have digital payload processing, electric propulsion, and state of the art optical inter-satellite links. Special emphasis has been placed on US cybersecurity requirements enabling SpaceLink to provide a robust and secure transport layer for critical communications.

In addition, OHB intends to invest USD 25 million into SpaceLink as the cornerstone investor in the first tranche of financing for the project, expected to be in the form of a SpaceLink PreIPO Convertible Note.

#ASX Announcements
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Added 3 years ago

EOS and Nova Systems form the Sovereign Missile Alliance to compete for Commonwealth of Australia sovereign missile enterprise program

Canberra, 3 August 2021

Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) and Nova Systems Pty Limited (“Nova Systems”) have announced the formation of the Sovereign Missile Alliance (“SMA”), a 100% Australian-controlled joint venture with EOS and Nova as equal partners.

The Commonwealth has announced that it expects to outlay $1 billion from mid-2022 to establish a Sovereign Guided Weapons (principally missiles) and Explosive Ordnance Enterprise (“GWEOE” or “Enterprise”), to manage the Commonwealth’s portfolio of GWEO. The Enterprise will comprise the Commonwealth Department of Defence and one or more Sovereign Industry Partners (“SIPs”) to be selected under a competitive process.

The Commonwealth has forecast GWEO requirements exceeding $40 billion over the period to 2040, and industry and analyst estimates range to $100 billion. The selected SIP(s) will be responsible for some or all of the following aspects of GWEO management: manufacturing, research and development, education and training, test and evaluation, maintenance and repair, storage and distribution, and disposal.

A key requirement is the engagement of Australian industry to improve capability resilience, availability of inventory and responsiveness to demand.

The SMA will compete for selection by Defence as a SIP. The SMA has a unique set of attributes that align with requirements for a SIP in the Enterprise:

  • Sovereign. It is Australian owned and controlled. It is demonstrably “sovereign” using any definition applicable.
  • Critical Mass. It has the scale to move forward quickly to meet Enterprise objectives. Its partners, Nova Systems and EOS, jointly have over 1,000 skilled staff, 18 facilities across Australia, and over $0.5 billion in revenue.
  • Supply Chain. The SMA already has an extensive Australian supply chain network of more than 600 SMEs, with many qualified to defence aerospace standards.
  • Experience. SMA partners have jointly over 55 years of experience in defenceaerospace industry. Page 2 of 4
  • Capabilities. The SMA has design, development, systems integration, test and evaluation, certification and systems assurance for military aerospace products.
  • Technology. Through EOS, the SMA can access the largest Australian-owned portfolio of aerospace technologies, and join the largest national tertiary collaboration programs in Australian defence industry. This technology is applicable to improving missile maintenance and to the development of next-generation missiles.

The SMA will leverage its two partner companies, EOS and Nova Systems, for the resources to move rapidly through an establishment phase to quickly deliver improvements to the operational readiness and cost-effective growth of Australian missile stocks and other GWEO inventory.

“The sovereign capability to deliver guided weapons already exists in-country and the SMA creates an Australian owned entity of scale with the required capabilities, resources, funding and established relationships across the broader Defence ecosystem to start this journey with the Commonwealth now,” said Jim McDowell, Group CEO, Nova Systems.

“The SMA will establish a sustainable, domestic capacity through a Common User Facility to manufacture and support customer-selected foreign missiles under license, using our indigenous supply chain. We have the core competencies, advanced R&D capabilities, existing IP, and established technology partnerships to create the next generation of guided weapons optimised for Australian requirements with full sovereign ownership and control. The Common User Facility will progressively move to produce these missiles,” said Dr Ben Greene, Group CEO, EOS.

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#ASX Announcements
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Added 3 years ago

SpaceLink Selected to Fly Demo on International Space Station

Canberra, 2 August 2021

Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) subsidiary SpaceLink has been selected by the Center for the Advancement of Science in Space (CASIS), manager of the International Space Station U.S. National Laboratory, for a funded demonstration of its end-to-end relay service which provides secure, continuous, high capacity communications between spacecraft and the ground. The demonstration will validate the use of a 10 Gigabit per second optical terminal, for real-time voice, video, and data exchange between International Space Station (ISS) crew, on-board systems, experiments, and terrestrial users.

In a highly competitive process made available for companies and research teams to propose technology development concepts capable of being utilized in low Earth orbit (LEO), the SpaceLink concept was selected by CASIS. With this selection, SpaceLink can advance its proposal for a potential flight project to the orbiting research and technology development outpost sponsored by the ISS National Lab. The SpaceLink relay network is designed to pick up where the U.S. NASA Tracking and Data Relay Satellite System (TDRSS) leaves off and go beyond with unprecedented capacity that leverages today’s technology advances.

“Our demonstration on the ISS is the first step to proving SpaceLink’s capabilities to advance space science and the emerging space economy,” said David Bettinger, SpaceLink CEO. “Funding from CASIS marks an important milestone in SpaceLink’s roadmap to providing massive bandwidth for organisations that need real-time connectivity between space and the ground” said Mr Bettinger.

With the proliferation of spacecraft in LEO, the demand for fast, continuous, high-capacity connectivity on orbit continues to grow. SpaceLink is designed to help close the business case for Earth observation companies, commercial space stations, satellite servicers, launch vehicles and space tugs. It also meets requirements for the U.S. Government and close allies that want to leverage secure industry solutions to maximize capabilities.

On 28 July 2021 CASIS notified SpaceLink of its intent to award a User Agreement. A fully executed agreement with program schedule and milestone deliverables is expected to be completed in the coming months and is not subject to any conditions precedent. The demonstration is expected to commence in 2024.

Glen Tindall, CEO of EOS Communications Systems said:

“Working with CASIS to put optical communications on the ISS is a major milestone for SpaceLink and for the future of the global satellite communications market. It is also a landmark agreement for EOS as Australia’s largest space company and supports our vision for optical communications to serve our major customers in both the U.S and Australia.”

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#ASX Announcements
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Added 4 years ago

AU$4.25m RWS Contract for European Remotely Operated Combat Vehicle Program

Canberra, 15 September 2020

Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) has secured two contracts totalling AU$4.25 million for the supply of R400 Remote Weapon Systems (“RWS”) to a European NATO country. A number of these systems are optimised for integration onto Remotely Operated Combat Vehicles (“ROCV’s”) and include the remote control units to operate the systems. Both contracts will be delivered this calendar year.

EOS RWS products are well suited to the emerging market for ROCV’s because of their market leading accuracy, reliability and light weight.

The Company is participating in a number of tender opportunities for ROCV capabilities across multiple countries with a sales pipeline in excess of AU$1 billion. Major awards are possible in the next 12 months.

 

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#ASX Announcements
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Last edited 4 years ago

Delivery of Major EOS Overseas Contract Resumed

Canberra, 10 September 2020

Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) has achieved a key step in restoring cash flow from its major overseas contract1 that was disrupted by COVID-19 lockdowns. A team of senior engineers (EOS technical team) from Australia have travelled to an overseas delivery point to re-initiate delivery and testing for over $150 million worth of EOS products.

EOS previously advised that product delivery and acceptance had been interrupted by airport and border closures, travel prohibitions and the lockdown of EOS and customer facilities. All of these constraints are steadily easing.

The successful dispatch of the EOS technical team overseas is the latest in a series of positive developments unlocking the delivery process to key EOS customers:

1. Airports in Australia and overseas are now operating at sufficient freight capacity to allow EOS products to be exported. Over $100 million worth of EOS goods and services have already been physically imported into their destination markets since COVID-19 impacted. This is expected to reach $150 million over the next eight weeks. Physical importation is a pre-requisite for delivery to begin.

2. The EOS facility located in the customer’s country is required to support technical teams from Australia to implement the delivery of EOS goods and services in the region. This facility was closed for four months but has re-opened and staff are now permitted to attend work, and the facility is ready to support deliveries.

3. The delivery process requires systems integration of EOS products with components and vehicles provided by suppliers, then test firing of the fully integrated weapon systems. With the easing of COVID-19 restrictions appropriate firing range facilities are now available.

4. Despite a general prohibition on Australians travelling overseas, the EOS technical team recently received Commonwealth of Australia approval to travel to complete the delivery process overseas. The EOS technical team has arrived, passed COVID-19 testing requirements and commenced work on the delivery process.

EOS expects that it will take six to eight weeks to re-implement the full installation, integration, safety qualification, weapon testing and physical delivery process that was suspended in March 2020. Once the process of delivery has been re-started cash flow is expected to resume in Q4 2020 and the accumulated backlog of product deliveries is expected to be cleared in six months.

This announcement has been authorised for release to the ASX by Dr Ben Greene, Director

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#ASX Announcements
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Last edited 4 years ago

EOS Releases New Counter Drone Product

Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) has released the world’s first full-spectrum system for defence against attack from unattended aerial system (UAS) or drones. This counter-UAS system (CUAS) is named Mopoke after the native Australian bird of prey1 . CUAS are entirely defensive systems. UAS have already been widely deployed in a series of regional conflicts, with some countries suffering significant loss of civilian life and critical infrastructure from long range UAS attacks. UAS are an asymmetric weapon in that they require defensive measures which can cost 10-100 times the cost of the UAS themselves. UAS can be effective even without being fired if they can cause defensive outlays on this scale and EOS has engaged closely with its customers over the past four years to ensure the affordability of its CUAS products. CUAS capability can consist of a simple weapon designed to destroy a few drones in a particular tactical setting or may be required to defend an entire urban area or large industrial complexes from UAS attack. This wide range of capability has not been coherently addressed before EOS developed its Mopoke system.

A CUAS system may comprise some or all of the following ten elements:

1. Radar sensors: These must detect a wide range of UAS threats up to 5 km away.

2. UAS interference: UAS are neutralised using command interference.

3. Electronic and electro-optic sensors: These detect drones without themselves radiating signals that can trigger UAS attacks.

4. Command and control (C2) system: Controls and coordinates multiple sensors and drone kill systems to defeat “drone swarms”.

5. UAS destruction at short range: Kinetic weapon (7.62 mm machine gun) to rapidly destroy UAS threats at short ranges of 50-500 m.

6. UAS destruction medium range: Kinetic weapon (30 mm cannon) to destroy UAS threats at ranges of 100–1500 m.

7. UAS destruction long range: Kinetic weapon (30 mm high velocity cannon) to destroy UAS threats at ranges of 200–3000 m.

8. Large UAS destruction long range: Surface-to-air missile for very large UAS at ranges up to 5 km.

9. UAS destruction long range: Directed energy (laser) to destroy UAS of any size and at any range which might otherwise penetrate or overwhelm UAS defences.

10. Tactics and training, including safe operating procedures for energy weapons and collateral damage minimisation. This is a key element since defences must often be mounted for civilian populations and respond autonomously against sudden swarms of drones.

There is substantial market demand for a scalable CUAS system that can deploy in large scale formations with all capabilities, and also deploy on a smaller scale to defeat smaller threats. This scalability requires strict compliance with the C2 architecture implemented.

EOS is the only aerospace provider that has internally developed eight of the ten CUAS elements listed above. Only the first two elements are outsourced by EOS for Mopoke which integrates all ten elements in a coherent C2 architecture. This significantly reduces the complexity of the system integration, and delivers unprecedented scalability.

No competitor can offer more than four elements from a single source, requiring each competitor’s CUAS implementation to be designed from the ground up. Furthermore, the individual elements of the Mopoke system have surpassed any competitor’s corresponding elements in customer trials and testing against active UAS.

Industry market surveys and forecasts estimate the Total Addressable Market globally for CUAS products to be US$48 billion (average of five independent market surveys) for the decade ending 2030. EOS estimates the CUAS market amongst its usual customers is around US$21 billion over the same decade. This is consistent with the global market estimates.

Following an international tender process, EOS has recently been down selected as the preferred provider for a major international CUAS requirement and contract negotiations with that customer have commenced. The company expects these to be concluded for the first phase of this contract over the next six months. Four additional customers have initiated discussions with EOS about this important defensive technology.

Announcing the product release, Grant Sanderson, Chief Executive of EOS Defence Systems said:

“EOS customers suffered over US$20 billion in losses of critical infrastructure due to drone attacks in 2019. Globally this figure would be higher and the inestimable cost of drone attacks in human lives adds to these high economic costs. EOS has applied its capability to manage complex systems to fast-track to production the most capable and coherent suite of counter-drone technologies in the world. The Mopoke suite offers several unique elements including the world’s first proven directed energy (laser) kill system for drones, and the first overlapping capabilities in kinetic defence. The EOS suite of capabilities is already being recognised in key markets where scalable performance is required to meet sophisticated asymmetric threats.”

This announcement has been authorised for release to the ASX by Dr Ben Greene, Director.

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#ASX Announcements
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Added 4 years ago

1H20 Key Operational Highlights

Revenue growth of 31%

  • Revenue of $75m, up 31% on pcp despite COVID-19 interruptions to deliveries
  • Net loss after tax of $14m as revenue and profit deferred into H2 2020 and 2021
  • H2 strong revenue growth and positive profit forecast. Guidance reaffirmed

COVID-19 challenges managed effectively

  • Staff well-being prioritised. Safety procedures allow for continued momentum
  • Supply chain disruptions to delivery for major overseas customer. Deliveries, testing and cashflow to resume in Q4
  • $134 million institutional placement and $10.8m SPP well supported by shareholders. Cash of $128m at 30 June 20

Industry tailwinds accelerating globally

  • Geopolitical tensions, asymmetric threats, defence spending, and manufacturing stimuli in key EOS locations are increasing
  • Australian 2020 Defence Strategic Update expands spending by $70bn to $270bn over 10 years. All EOS sectors are impacted
  • Global demands for advanced technology, real value-for-money, increased automation, and responsive delivery all favour EOS

Major growth initiatives

  • New ADF 251 RWS contract. New product developments include Counter-UAS, directed energy, containerised weapons and remotely operated combat vehicles. Production capacity built to $450m pa at Australian and US facilities, with planned path to $900m pa
  • Space Systems continues to drive R&D. $250m of space sensor opportunities expected to drive shift into profitable backlog
  • EM Solutions in line with acquisition targets. SpaceLink satellite communications generating strong interest from funders and customers