viewXTEK Ltd

XTEK receives $6.3 million purchase orders from Australian Defence Force

The Australian Defence Force is a key customer underpinning revenue growth.

soldier launching a small drone
XTEK achieved revenue of $17.2 million in FY18, up 91% on the prior year

XTEK Ltd (ASX:XTE) has received purchase orders totalling $6.3 million from the Australian Defence Force (ADF) for drone spare parts.

The spare parts will support the small unmanned aerial systems (SUAS) fleet under the Land 129 Phase 4a contract.

Additionally, XTEK has completed installation of a sophisticated repair facility in Canberra.

READ: XTEK to continue growth through commercialising proprietary products

XTEK’s managing director Philippe Odouard said: “These purchase orders, coupled with the repair facilities in Canberra, represent another significant milestone in XTEK’s strategy to increase the amount of work done by the company in adding value for original equipment manufacturer (OEM) products sold in Australia.

“We are excited to be providing this unique Australian Industry Capability to the ADF.”

Working with NASDAQ company for the Canberra repair facility

The Canberra repair facility incorporates key maintenance equipment from AeroVironment, Inc. (NASDAQ:AVAV) which enables electronic repairs.

A composite repair facility as also been installed in parallel.

The facilities ensure XTEK is well placed to capture future potential revenue streams from ongoing repair and maintenance of the ADF’s growing SUAS fleet.

AeroVironment general manager for drones Kirk Flittie said: "We are proud to team with CTEK in support of the Australian Defence Force.

"We look forward to secure the actional intelligence they need to proceed with certainty."

Drones a big driver of company revenue

XTEK supplies a range of products and support services to the defence, law enforcement and government sectors globally.

The main contributor to its core business revenue is supplying SUAS (hand-launched drones) to the Australian and New Zealand defence forces.

XTEK has provided FY2019 revenue guidance of $17 million to $26 million signalling another financial year of growth.

Quick facts: XTEK Ltd

Price: 0.82 AUD

Market: ASX
Market Cap: $43.6 m

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