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XTEK wins million dollar purchase order

XTEK is a leading company in the Australian Homeland Security Market.
XTEK wins million dollar purchase order
XTEK has secured a purchase order with the Australian Defence Force

XTEK (ASX:XTE) has secured a $1.1 million purchase order with the Australian Defence Force (ADF) to supply x-ray generators.

This follows a separate supply contract for similar equipment to the ADF worth $0.2 million delivered in the last few weeks.

The $1.1 million contract builds on the $6.3 million of orders in hand at the end of the December quarter, up 33% from previous quarter.

Philippe Odouard, managing director, commented: “The strong sales momentum that XTEK is experiencing has allowed us to build our base of recurring revenue through the provision of maintenance services by our highly specialised technical staff.

“We have made a positive start to the year and we expect to deliver a strong revenue growth for 2017 full year as the company further positions itself as the leading supplier of choice for x-ray generators across the military, police and security markets.”


Background

XTEK is a leading company in the Australian Homeland Security Market.

XTEK’s knowledge and expertise is focused on the delivery of protection and sustainment solutions for the government, law enforcement, military and commercial sectors.

The supply and maintenance of unmanned systems are becoming a major focus for XTEK.

In addition, XTEK has developed a range of new technologies which it is now commercialising for the international market.

XTclave composite production process and products allow the highest performance ballistic protection for armed forces.

XTatlas real time geospatial video and the digitisation of unmanned ground vehicle (UGV) control systems provide novel solutions for our law enforcement agencies and military forces.


Well positioned for 2017

During the December quarter, XTEK continued to make inroads in the commercialisation of its proprietary technologies.

Contracts and purchase orders worth circa $0.5 million were recently signed for the sale and maintenance of explosive ordnance disposal (EOD) robots.

Management believes the company is well placed to secure more sales contracts in the short to medium term as most of the EOD and tactical robots used by the nation’s police services are coming to the end of their productive life and will need to be either replaced or upgraded.

XTEK is the market leader in Australia for the supply, customisation and maintenance of these systems.

The company’s existing business is moving from strength to strength as the government increases spending on defence and security during these unpredictable times, while its unique technologies are likely to make a significant step closer to commercialisation over the coming months.

Further, XTEK’s subsidiary Simmersion is also gaining more market interest than originally anticipated.

Simmersion’s 3D visualisation software, which is aimed at urban planners, architects, mining companies and environmental impact consultants, just to name a few, is being trialled by a number potential customers.

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