Electro Optic Systems update on EM Solutions acquisition
Electro Optic Systems Holdings Limited is pleased to provide an update to shareholders on the successful integration of EM Solutions into the EOS Group following the acquisition announced a year ago.
Brisbane-based EM Solutions has had a successful first year of ownership under EOS, with continued strong growth, new contract wins and significant technology development.
Led by CEO Rowan Gilmore, EM Solutions continues to achieve growth at over 20% year-on-year in both revenue and EBIT. Despite delays on critical supply chain components due to COVID-19, management still expects to meet all scheduled shipments before year-end and to outperform the original acquisition business case. This represents the seventh successive year that EM Solutions has grown its business.
This year the company has delivered its tri-band Cobra satellite communications terminals into the Australian Navy’s Anzac frigate upgrade and new Offshore Patrol Vessel programs, and in November shipped the first of a series of Cobra terminals as part of a new AU$14 million order for three NATO Navies. EM Solutions has also recently received an AU$3 million order from a US prime contractor supplying manpack satellite terminals into a US Defense program. These terminals will incorporate EM Solutions’ Ka-band transceivers which are based on the same core technology that has been supplied over recent years into numerous maritime, airborne and land mobile platforms.
As a result of recent contract wins, EM Solutions now has a record confirmed order backlog equivalent to 14 months’ production, and is in contract discussions with overseas defence forces that could stretch that to two years of future production. EOS is also seeking to leverage the US EOS marketing and production capabilities in Huntsville, Alabama to address the large and growing North American market.
EM Solutions also continues to invest strongly in R&D, leveraging its intellectual property in electromagnetics and microwaves with EOS’ technology in optics to develop new hybrid RF-optical systems that will support forthcoming satellite systems.
In November, EM Solutions and the Australian Navy will also complete the Detailed Design Review of its new “Fleet” terminal which is intended to replace certain aging legacy systems currently in service.
Commenting on the update Glen Tindall, CEO of EOS Communications Systems said:
“The team at EM Solutions have worked exceptionally hard to deliver a fantastic result, demonstrating their dedication to their clients, adding to EOS’ proprietary technology base, and maximising the synergies between EM Solutions and the broader EOS group. As government customers continue to evolve towards multi-orbit, multi-band satellite communications, EM Solutions is uniquely positioned to deliver products that provide maximum flexibility and resilience. We will be developing next generation satcom-on-the-move terminals that can support the optical technology that will be deployed by the EOS SpaceLink MEO Satellite Relay System.”