The Electro Optic Systems Hldg Ltd (ASX: EOS) share price is on the move on Monday after announcing a new contract win.
At the time of writing, the defence, space, and communications company’s shares are up 3% to $6.59.
What did Electro Optic Systems announce?
This morning Electro Optic Systems announced that it has been awarded a $34.4 million contract by the Commonwealth of Australia.
According to the release, the contract is for the Command Control Communications and Computers – Evolutionary Digital Ground Environment (C4 EDGE) program.
The contract sees EOS Defence Systems become the Prime Contractor for an all-Australian industry consortium to demonstrate a sovereign Battlegroup and Below Battlefield Command System (BG-BCS).
Management believes this commitment by the Morrison Government and the Australian Army will support the development of innovative local businesses capable of providing the armed forces with the critical, world-leading communications solutions they will require in the future.
EOS Defence Systems will lead 18 Australian businesses in the C4 EDGE program to demonstrate the local industry’s ability to provide battle critical communications solutions for the land domain.
What is the C4 EDGE solution?
The release explains that the C4 EDGE solution will see EOS Defence Systems incorporate locally sourced combat radios, satellite terminals, cryptography, networking middleware, command applications, user interfaces, batteries, and power management into a coherent system.
The program will utilise Australian design, production, workforce, intellectual property, and supply chain in the development and demonstration of this capability
The CEO of the EOS Defence Systems business, Grant Sanderson, sees a lot of promise in the C4 EDGE solution.
He said: “The C4 EDGE team represents the collaborative effort of world-class Australian companies for the benefit of the Australian Defence Force.”
“The design, development and demonstration of the C4 EDGE solution over the next year will showcase the ability of Australian companies to produce high-tech materiel which EOS will integrate with its own technologies into world-class military systems. The program provides a model to continue growing a capable, connected and resilient sovereign defence industry that employs more Australians,” Mr Sanderson added.
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More reading
- Why the Electro Optic Systems (ASX:EOS) share price is shooting higher today
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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