Canberra-based electronics and systems developer Electro Optic Systems (ASX: EOS) has completed the takeover of communications business EM Solutions and released increased profit forecasts for the year.
The company is now a subsidiary and a foundation for EOS’s new communications division, alongside its divisions in defence and space business.
EOS’s expertise is in laser communications in space – it built and now operates its own satellite, now known as EOSCOM (pictured), testing space communications and optical counter-measures.
The company, best known for its remotely operated weapons systems, now expects EBIT for the year ended 31 December, 2020 to be $31 million, up from the previous forecast of $28 million.
EBIT forecast for the current year is unchanged at $20 million.
The company said in a statement to investors: “A combination of EMS and EOS technologies fills a significant void in the market for space communications.
“For example the EOS space tracking sites will be employed to provide new capabilities to EMS customers, and EMS communications terminal now allow EOS to offer 24×7 operations to its customers.”
EOS is sitting on a significant order backlog which will see EBIT grow by 45 per cent a year in 2020 and 2021 without achieving new sales.
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