Risk management services provider Ava Risk’s (ASX: AVA) new Aura Ai-X fibre optic sensing technology has been selected to protect a critical group of European Airports. Valued at about $800k, the contracts are for Satu Mare and Sibiu Airports in Romania and another Western European hub.
As per the agreement, the Company will supply detection software and equipment, complementing a five-year contract to provide software upgrades and support. The delivery of the detection software and equipment is expected to occur during Q1 FY24.
Ava Risk Group CEO, Mal Maginnis, said, “Securing these contracts is a vote of confidence in what we believe to be the most advanced perimeter intrusion detection technology on the market. We are confident that Aura Ai-X will fast become the solution of choice for the smart protection of critical infrastructure worldwide.”
Launched in March 2023, Ava’s Aura Ai-X is a data driven, fiber sensing technology transforming system, using deep learning. Aura Ai-X delivers a leading Probability of Detection (POD) combined with the lowest Nuisance Alarms Rate (NAR). Basically, the solution reduces the odds of false alarms, enhancing the overall detection systems, and improves relevant detection.
Ava Risk operates three business segments, comprising Detect, Access and Illuminate. The Detect segment manufactures ‘smart’ fibre optic sensing systems for security and condition monitoring for a range of applications including perimeters, pipelines, conveyors, power cables and data networks. Access involves developing high security biometric readers, security access control and electronic locking products, and finally Illumination specialises in the development and manufacture of illuminators, ANPR cameras and perimeter detectors.
The European airport contract validates the market opportunity for Aura Ai-X, which features an embedded deep learning engine to enhance system performance. It uses algorithms backed by the Company’s global data library for decision making.
What’s more, this is not its first European contract. In April 2023, Ava announced the first sale of its Aura Ai-X detection system, selected to protect a critical European border for $2.2 million.
In FY23, the Company’s overall sales order intake grew to $30.9 million, up 71% on FY22. Group revenue from continuing operations amounted to $28.6 million, up 54% on FY22. Underlying EBITDA was $2 million, marking a 150% increase. Ava Risk is expected its newly launched Aura Ai-X tech to give its business a leg up.
Ava Risk’s net loss from continuing operations of $1.1 million is $0.4 million higher than FY22 due to higher depreciation and interest charges associated with the acquisition of GJD. It acquired the detector equipment provider GJD’s in August 2022 for $5.5 million.
Despite the recent contracts, Ava’s cash position is far from cushy. The Company had a cash balance of $5.5 million at 30 June 2023, declining from FY22’s $15.2 million. But as countries up their defence and other such tech in light of growing global uncertainty, Aura Ai-X’s AI tech has the potential to prove itself as a worthy investment.
Alinda is a Business Reporter for The Sentiment
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