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Electro Optic Systems Holdings executes major weapon system order

The system can operate a variety of weapons including machine guns.

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Orders worth more than A$500 million expected in 2017

Electro Optic Systems Holdings (ASX:EOS) has executed a A$170 million contract to supply weapon systems to aerospace and defence systems company Orbital ATK Inc (NYSE:OA).

The contract, deliverable from 2017 to 2020, relates to Electro’s new R-400S-Mk2 weapon system product, released to the market early in 2017.

Electro Optic produces robotic or remotely-controlled weapon systems, tailored to mount customer weapon inventories.

The R-400S-Mk2 weapon station is specifically developed to provide 30 mm firepower.

It can also operate a variety of other weapons including machine gun and automatic grenade launcher.

Prior to market launch, Electro developed a variant of the system to extract optimum performance from weapons produced by Orbital ATK for U.S., NATO, Commonwealth and other forces.

Electro has now secured access to sufficient resources and supplies to expand its order intake for 2017 well beyond this initial A$170 million contract.

Significantly, the company now expects to exceed A$500 million in 2017 orders for its new weapon system.

Electro’s share price increased more than 70% since the start of 2017, closing at A$3.13 on Wednesday.

Quick facts: Electro Optic Systems Holdings Ltd

Price: 5.61 AUD

ASX:EOS
Market: ASX
Market Cap: $819.45 m
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