UK Defence Win and Guidance Upgrade
Sydney, May 27, 2021 AEST (ABN Newswire) - Etherstack plc (
ASX:ESK) wishes to advise that its UK subsidiary Etherstack Wireless Limited has been awarded a contract with UK Ministry of Defence for technology and services, with an initial value of GBP220,000 (~USD$311,000).
In conjunction with the Commonwealth of Australia win announced yesterday, these two deals will contribute collectively ~US$700,000 additional revenue to the current financial year ending 31 December 2021.
Based upon the expected revenue to be recognised in the current half year ending 30 June 2021 Etherstack wishes to revise its half year revenue guidance upwards as described below.
Management advises the following expectations:
- Revenue Uplift: Management wishes to revise the revenue guidance provided in the Trading Update dated 14th May 2021. The Company now expects revenue for the half year ending 30 June 2021 to be in the range of US$3.5m to US$4.0m, representing an increase over the corresponding H1 period in 2020 of between approximately 46% to 66%.
- Further Orders Expected: In addition to the awards announced today and yesterday, management expects that further revenues in the current half year may be derived from the successful conclusion of advanced negotiations in progress, which will be announced if and when signed.
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.
| ||
|
