Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Stakk Secures T-Mobile Contract to Power Super App Expansion
    Stakk Secures T-Mobile Contract to Power Super App Expansion
    • News

  • Medibank Backs Emyria with Landmark Depression Care Deal
    Medibank Backs Emyria with Landmark Depression Care Deal
    • News

  • NoviqTech Launches Quantum Intelligence Products, Opening Path to Enterprise-Grade Quantum AI
    NoviqTech Launches Quantum Intelligence Products, Opening Path to Enterprise-Grade Quantum AI
    • News

  • BRE Wins Final Permit to Advance Rare Earth Pilot Plant in Brazil
    BRE Wins Final Permit to Advance Rare Earth Pilot Plant in Brazil
    • News

  • Harris Technology eyes profitability as refurbished tech sales surge
    Harris Technology eyes profitability as refurbished tech sales surge
    • News

  • QIC Fund Backs Ark Mines with $4.5m to Accelerate Sandy Mitchell Development
    • News

  • Swift Secures $2.4m Chevron Contract to Extend Entertainment and Support Services
    Swift Secures $2.4m Chevron Contract to Extend Entertainment and Support Services
    • News

  • FBR’s tech could help reduce housing construction-related cost pressures
    FBR’s tech could help reduce housing construction-related cost pressures
    • News

  • Atomo Locks in US$410K Pascal Order as FebriDx Demand Accelerates in the US
    Atomo Locks in US$410K Pascal Order as FebriDx Demand Accelerates in the US
    • News

  • June 2025 quarter CPI no roadblock to August RBA rate cut
    June 2025 quarter CPI no roadblock to August RBA rate cut
    • News

Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million

  • In News
  • December 1, 2023
  • Alinda Gupta
Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million

In the midst of a debt dispute with a major lender, Australian security technology company Electro Optic Systems (ASX: EOS), which operates in the defence and space sectors, has announced a robust revenue projection for the calendar year 2023. The Company anticipates its revenue to range between $210 million and $230 million for CY23.

This comes as the Company reported total customer receipts of $220 million for the nine months to September 30, 2023, up from PCP’s $103.9 million. 

Throughout 2023, Electro Optic Systems has actively expanded its product portfolio and customer base while optimising the delivery of existing contracts. Aware of various sell-side analysts’ revenue forecasts for the year for EOS, the Company decided to put speculations to rest and provide its projections. 

Notably, the Company reported higher-than-expected revenue in October, and subsequent analysis indicates a likelihood of surpassing initial revenue projections for November and December 2023.

Key contributors to this positive outlook include ongoing work under a multi-year contract with a significant Middle Eastern customer, witnessing accelerated milestone achievements, and continuous efforts by EM Solutions in delivering contracts, such as the new SEA 1442-5 agreement with the Royal Australian Navy valued at up to $202 million.

Electro Optic Systems operates in two distinct divisions: First, defence systems, where it specialises in technology for weapon systems optimisation and integration, as well as Intelligence, Surveillance, and Reconnaissance (ISR) and C4 systems for land warfare. Second is space systems, which includes all space and communications businesses operating as Space Technologies and EM Solutions. In 2023, the Company shipped items to Ukraine and received more orders for its defence and space tech.

At the same time, Electro Optic Systems has been facing a debt dispute with Washington H. Soul Pattinson (WHSP) since October. EOS received a $4.5 million fee claim from its primary lender, WHSP, on October 9, 2023. Subsequent discussions led to an agreement with WHSP not to pursue collection until December 8, 2023, as EOS disputes the claim. 

Amid the ongoing WHSP dispute, Electro Optic Systems secured a new contract worth approximately $28 million in November to supply a customer in Southeast Asia. The Company will provide R600 Remote Weapon System (RWS) unit spares between 2024 and 2026 as part of this agreement.

The positive revenue momentum experienced in October and November 2023, coupled with an improved outlook for December, positions Electro Optic Systems to exceed its previous expectations for Q4 CY23. The Company is bolstered by the sale of its Remote Weapon Systems (RWS) products to a major customer in Western Europe, with a total contract value of $52.7 million.

As of Q3 CY23, the Company’s cash balance was $46.1 million. Its dispute resolution with WHSP will further reveal where it stands monetarily, although the impact might not be too significant.

  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
  • Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
  • CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
  •  
  •  
  •  
  •  
  • ASX: EOS
  • Electro Optic Systems
  • EOS
  • Remote Weapon System
  • WHSP
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
  • Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
  • CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
  • Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
  • CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.