US$2.3m North American Equipment Sale
Sydney, Dec 12, 2023 AEST (ABN Newswire) - Etherstack plc (ASX:ESK) is pleased to advise the group's North American subsidiary, Etherstack Inc., has signed a follow on US$2.3m deal to supply further digital radio communications technology to a North American channel partner, Daniels Electronics Ltd, a subsidiary of Codan Limited (ASX:CDA).
This renewal follows on from the US$1.35m deal announced in February 2020. The hardware components of the equipment to be supplied are manufactured in Australia by Etherstack.
The supply contract has an initial 6-year term and has provisions that are expected to generate Etherstack additional licensing and support revenues beyond the baseline US$2.3m. The majority of the baseline revenue will be recognised within the next 18 months.
Etherstack's CEO, David Deacon, said "We are very pleased to continue our longstanding relationship with one of Codan's North American business units. This is a good example of co-operation between Australian technology companies in the global market, and we continue to explore other areas of collaboration between the businesses".
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.