The orders are predominantly for the supply of a range of components for the existing fleet of Small Unmanned Aerial Systems (SUAS); and the XTEK designed and manufactured Tac 2 Sniper System.
The company is expecting to secure further orders before the end of the year and in the third and fourth quarters of FY17.
XTEK also has revenue opportunities from products and solutions developed in-house such as XTatlas, XTclave, bomb disposal robots and XTviz.
XTEK is the only listed homeland security specialist in Australia, providing high quality protective, security, tactical and forensics solutions to the government, law enforcement, military and commercial sectors.
XTEK is well placed to benefit from increased defence spending by the federal government and its push to increase local content in defence procurement.
The company will also look to benefit from growing demand for its products and services due to rising geopolitical tensions and the threat of terrorism.
XTatlas is XTEK’s live contextual video and near real -time mosaic mapping technology.
It provides real time video overlays and near real time map views of a fires, floods or tactical situations to give decision makers timely and accurate information to act decisively.
The total available world market for XTatlas is in excess of $50 million.
XTclave is a composite consolidation technology that continues to be used to produce hard armour personal protective plates for the U.S. Foreign Comparative Testing (FCT) program.
Final results from the program will be provided to the FCT office in the next month.
The main objective of the program is to create lighter body armour for the U.S. Army.
The results to date are extremely encouraging.
XTEK has begun to engage with a number of manufacturers/users of protective plates which should result in orders for the design and build of XTclave manufacturing plants.
XTclave is currently being used to make parts for the XTEK Tac 2 Sniper System order.
XTEK is expecting good news during the current financial year including:
- At least doubling of FY16 revenue, which was $3.4 million;
- Signature of a sizeable contract for the SUAS Land 129 Phase 4 project where XTEK has been selected as the preferred supplier;
- Revenue from the design, build and/or upgrade of XTclave manufacturing plants;
- Revenue from the production of products utilising XTclave; and
- Additional revenue from the agency business due to a range of new country terrorism products.
XTEK recently secured $2.5 million in funding through a share purchase plan and placement to pursue near-term growth opportunities.
This includes the commercialisation of the company’s XTatlas contextual mapping technology and XTclave advanced composite product production.