Signs $4.1m 1st stage Australian Defence Contract
Sydney, Dec 7, 2020 AEST (ABN Newswire) - Etherstack Plc (
ASX:ESK) is pleased to report that its subsidiary Etherstack Pty Ltd has entered into a technology licensing contract with the Australian Department of Defence to supply Etherstack technology and associated delivery services to the Commonwealth of Australia.
The initial stage of multiple proposed work packages is worth A$4.1m, with the majority of this revenue to be recognised in FY2021. A modest contribution to the current financial year (ending 31st December 2020) is expected.
Management expects that further work packages will be contracted based on performance of the initial work package, but advises that these future packages cannot be guaranteed.
Anna Squires, Director of Etherstack's Waveforms Division said, "Etherstack has supplied technologies and services to allied defence organisations and radio manufacturers in Europe and North America for almost two decades. This Australian program is a significant step towards a long-term relationship with the Australian Defence Force".
Etherstack CEO, David Deacon added, "This program builds upon existing Etherstack technology and creates a significant Australian export opportunity to both other nations and international military equipment manufacturers. The supplied solution is repeatable and the first of its kind that will be compliant to a specific military standard. Etherstack expects interest from existing and new radio manufacturer customers internationally, as well as other nations, and will attempt to rapidly capitalise through licensing the solution to other countries. We have a proven track record of engaging and contracting with this customer base."
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About Etherstack Plc
Etherstack (ASX:ESK) is the world's leading licensor of wireless technologies for the digital LMR industry and the Company develops wireless products for the main digital radio communications standards known as APCO P25, TETRA and DMR. Over the past 25 years, over twenty wireless equipment manufacturers have licensed LMR technologies from Etherstack for use in their products.
MCPTT over LTE is an emerging cellular standard that provides public safety grade PTT (Push-To-Talk) solutions within 4G and 5G cellular networks. Demand for MCPTT services and equipment by telecommunications carriers and end user agencies has been steadily growing in the past few years and is expected to rise rapidly over the next 36-48 months.
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