Foolnomore  had a question about EOS's negative cashflow.  I don't know the absolute answer to this, but I think it is a function of the contract business model.  EOS bids for contracts worth hundreds of millions of dollars, they then need to purchases bits and bobs from suppliers to fullfil the contracts and then as they deliver to milestones they are paid money, which may take a number of years. If the number of contracts increases/grows, which is the case for EOS, there is a backlog. This increase in contracts then requires them to spend more to get the supplies to meet those contracts, which then results in a negative cash flow, because the timeframe for getting the milestone payment is a year or more in the future. 

Obviously I am not an accountant (but it makes sense in my head), but if anyone can give a more nuanced explanation that would be great!

I agree with Rapstar. The original trading halt announcment on Thursday indicated that an announcement would be made on that day.  The contract is either bigger or there is haggling over details.  $100M sounds a little cheap for 251 (why not 250) of the remote weapon systems (RWS, ~$4M each), but I wouldn't really know.

It will depend on the time frame as well.  The 2019 Dec quarter was $54.3M.  Presumably it will take some time to build 251 automatic firing turrets, so what time frame is does that $100M get spread over?.  EOS has a big back log on contracts.  Maybe they should expand?

Disclosure I hold EOS

New Weapons Boost Army Capability and Secure Jobs

The Morrison Government will acquire 251 Remote Weapon Stations that will better protect Army personnel on operations while boosting Australian jobs and opportunities for small businesses.

The Remote Weapon Stations, which allow a gunner to operate a weaponised system from a protected position, will be added to the Army’s Bushmaster and Hawkei protected mobility vehicles.

Prime Minister Scott Morrison said the new weapons were part of the $270 billion capability upgrade for the Australian Defence Force, under the new 2020 Force Structure Plan.

“The Federal Government is committed to ensuring Australian Defence Force personnel have the tools they need to protect themselves and keep Australians safe,” the Prime Minister said.

“At the same time we must have a robust and resilient defence industry that maximises opportunities for small businesses and supports Australian jobs and local investment.”

Minister for Defence Senator Linda Reynolds CSC said the 2020 Defence Strategic Update and the 2020 Force Structure Plan would strengthen the ADF’s capabilities to respond to an increasingly challenging strategic environment.

“The Morrison Government is investing a record $270 billion in Defence capability and infrastructure over the next decade,” Minister Reynolds said.

“Investments such as the acquisition of Remote Weapon Stations will make the ADF more capable for the wide range of potential scenarios and threats Australia will face in the future.”

Minister for Defence Industry Melissa Price said the investment in new remote weapon stations would provide job stability for over 200 of Electro Optic Systems’ workforce directly involved in engineering and support.

“This investment not only secures local jobs but it also provides certainty for over 100 supply chain businesses across Australia,” Minister Price said.

“More than 80 per cent of the parts that Electro Optic Systems use for these weapons are sourced through the Australian supply chain and that’s good for jobs and small businesses.

“While the Federal Government’s focus is on keeping Australians safe, our investments in Defence have a significant benefit for Australian businesses and workers – around 15,000 businesses and 70,000 workers benefit from our investments and that’s set to grow.”

EOS was mentioned in this piece on recent defence spending announcment. 

https://www.aumanufacturing.com.au/science-and-industrys-role-in-our-new-defence-posture