Ava Risk Group Ltd (ASX:AVA) has confirmed the purchase order of Future Technologies SecureLink technology has been received by its in-country manufacturing partner SFO Technologies Private Limited (SFO).
The technology will be used for a major military Cybersecure data network project.
AVA will receive an estimated US$11.9 million over the next 14 months, paid as licence fees with an expected further revenue after the initial 3-year warranty period from a subsequent 7-year spares and maintenance contract (estimated at US$3.4 million over the warranty period).
Data network to “contribute significant earnings in financial year 2020”
Ava group chief executive Scott Basham said: “This large-scale deployment of our data network security solution will generate further interest in our cybersecurity solutions and contribute significant earnings in financial year 2020 and beyond.”
Under the revised contract terms, Ava will be paid on 12-day terms and benefit from a bank guarantee equivalent to 200 units of product (about 20% of total production volumes).