Etherstack plc’s (ASX:ESK) subsidiary Etherstack Pty Ltd has entered into a technology licensing contract with the Australian Department of Defence to supply its technology and associated delivery services to the Commonwealth of Australia.
The initial stage of multiple proposed work packages is worth A$4.1 million, 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.
Anna Squires, Director of Etherstack’s Waveforms Division, said,management expects that further work packages will be contracted based on performance of the initial work package, but that these future packages cannot be guaranteed.
Etherstack has supplied technologies and services to allied defence organisations and radio manufacturers in Europe and North America for almost two decades,” Ms Squires said.
“This Australian programme is a significant step towards a long-term relationship with the Australian Defence Force.”
Etherstack CEO, David Deacon, said the programme 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,” Mr Deacon said.
“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.”
Etherstack is a wireless technology company specialising in developing, manufacturing and licensing mission critical radio technologies for wireless equipment manufacturers and network operators around the globe.