Proactive Investors - Run By Investors For Investors

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.

View full XTE profile View Profile

XTEK Ltd Timeline

Related Articles

1543288499_shutterstock_760467970.jpg
November 27 2018
Covata provides software solutions that enable continuous identification, classification and secure management of unstructured data.
Partners shake hands with a US flag in the backdrop
November 14 2018
The company's recent acquisition Telerhythmics wrote US$3.2 million revenues in just nine months.
marketing
September 18 2018
New business from the likes of Vodafone and GSK and a strong contribution from The Corner, which it acquired in December, meant revenues jumped 70% in the first half

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use