The applications of virtual reality systems are far-reaching. From providing entertainment to strengthening military training processes—extended reality, i.e. a mix of virtual, augmented and physical reality, is widely adopted. That’s where the immersive extended reality company xReality Group (ASX: XRG)’s reality is thriving.
In Q3 FY24, the Company saw strong sales growth for its subsidiary Operator XR (Enterprise Sector) in the US. Since late January, it has locked in six new US Law Enforcement customers, including two in early April.
Operator XR is xReality’s military and police virtual reality system. The software has made progress in the United States law enforcement and military markets over the past three months and continues to achieve major milestones in line with the global expansion strategy.
In Q3, the Company secured four US law enforcement customers across Arizona, Illinois, Nevada, and Idaho. Subsequent to the quarter, as of April 19, it won two additional US Law Enforcement customers in Georgia and California. The total contract value of the six new deals comes to $583k, with cash receipts during the quarter totalling $326k. The receipts include the Garfield County Sheriff’s Department renewal in Colorado, USA.
Due to positive feedback on the product, the Garfield County Sheriff’s Department in Colorado has decided to renew its contract into the second year, six months ahead of schedule. The County has already completed its first full agency-wide training with the system and is acting as a reference customer
Operator XR is also negotiating with the US Department of Defence to develop an R&D proposal that has strong prospects for follow-on work.
xReality Group is an enterprise software development company building mission-critical military and law enforcement simulations as well as entertainment simulations. The Company’s portfolio comprises indoor skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment (FREAK), training, and production.
In Q3 FY24, its ARR grew by 25% from $489,936 in Q2 to $610,962. It recorded multiple late-stage opportunities in the US, Southeast Asia and Australia, which might result in its recurring licence fees surging in the last quarter of the financial year. Cash receipts for the quarter totalled $2.3 million, with YTD amounting to $7.3 million. xReality reported a cash burn of $771.4k, having invested in XR product development, hardware, and fabrication/logistics facilities.
The Company has 133 global opportunities with a total aggregate value of $23.7 million. It has also been performing well in Australia’s entertainment sector, thanks to the Christmas school holidays and FREAK entertainment (a virtual reality gaming arcade) bookings showing results.
Its military and professional revenue saw a 10% uptick. iFLY Downunder and iFLY Gold Coast, xReality’s skydiving centres, adopted a strategic partnership approach to bolster their business by aligning with other centres, coaches, governing bodies, and military units.
The Company ended the quarter with $1.7 million cash.
In May, it is expected to undertake the LAPD SWAT trial, which was delayed due to some customer changes. For the final quarter, xReality is anticipating 12 potential new sales, totalling $6.85 million total contract value, including the US Department of Defence proposal valued at about $5.6 million.
Alinda is a Business Reporter for The Sentiment
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1 Comment
Shraddha13
Thank you for sharing! To explore further
Replyhttps://www.360iresearch.com/library/intelligence/vr-military-training