EOS in loss as Covid interrupts arms exports

Defence, communications and space manufacturer Electro Optics Systems reported an operating loss of $11.7 million in the June half year on revenues up from $75 million in the previous corresponding period to $97.8 million.

EOS has suffered interruptions in the delivery of remote weapons stations (RWS) in its biggest-ever order during the half due to Covid-19, however the customer, believed to be the UAE, made a payment of $30 million in the half.

Cash receipts of $100 million are expected under this contract in the second half of 2021.

During the half EOS Defence Systems reported a profit before income tax of $5.7 million, up from a loss of $14.3 million in the previous corresponding period.

Also the value of the order from the UAE was renegotiated up from $433 million to $456 million, reflecting a revised scope of work, as well as resetting delivery expectations.

EOS Defence Systems has a sales pipeline of $2.6 billion, with a number of material contracts in advanced stages of negotiation.

The order book at June 30 was $375 million, with 30 per cent domestic orders and 70 per cent exports.

EOS told investors that the revenue from its space businesses were expected to be double that of the first half in the second half of the year.

The sales pipeline for space is $54 million.

The company’s said it was part way through the process of selecting a satellite manufacturer for the first four of a planned constellation of satellites planned by its SpaceLink venture.

The first satellites, which will provide optical intersatellite links to speed massive amounts of data to users no matter where they are located on Earth, will be operational in 2024.

The SpaceLink sales pipeline is $200 million.

Picture: Electro Optic Systems/SpaceLink

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