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XTEK wins another million dollar contract with Australia Defence Force

Revenue guidance for FY2018 is between $11 million and $18 million.
unmanned aerial system
The company aims to build out its contract pipeline over the next 12 months

XTEK Ltd (ASX:XTE) has received a purchase order from the Australian Defence Force (ADF) worth A$1.4 million.

The purchase order is for additional WASP AE small unmanned aerial systems (SUAS), also known as a type of drone.

The order includes associated after-market services including technical support, training and spare equipment.

Well-positioned to continue building contract pipeline

XTEK’s managing director Philippe Odouard said: “This win represents another positive addition to our growing contract pipeline.

“We are well positioned to continue building our contract pipeline over the next 12 months, driven by further purchase orders in Australia, underpinned by increasing defence spending by the Australian Government, and in key international markets.”

This purchase order is scheduled to be delivered before the end of June 2018.

READ: Xtek poised for rapid near-term growth following major contract wins

In July 2017, the ADF revealed a $101 million investment in a new SUAS capability through XTEK.

For XTEK, this represented initial sales revenue of over $40 million and potential maintenance revenue of up to $9 million per annum for 5 to 7 years following delivery.

The company remains on track to deliver the initial range of SUAS to the ADF by July 2018.

Notably, this latest purchase order is in addition to this contract.

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