CANBERRA, Australia,
July 27, 2011 /PRNewswire-Asia/
--
Electro Optic Systems Holdings Limited ("EOS") continues to
expand its remote weapon systems business with increasing market
success.
New Market Penetration
In June 2011 EOS executed
agreements to supply remote weapon systems to a significant
military customer which had not previously purchased remote weapon
systems from any source.
The sale was achieved in open competition and after competitive
firing trials in the foreign country, where the EOS product
excelled. The program requirement is approximately 400 weapon
systems over approximately 5 years, subject to annual budget
appropriations. Delivery of this order will commence within
2011.
EOS expects the longer term requirements of this customer to be
substantially in excess of this initial program requirement, and
the current order places EOS and its local partners in a strong
position for future procurements.
This order represents a significant breakthrough for EOS, since
the customer is a major military organisation not in the Australian
region which has made its decision only after an exhaustive
selection process open to all RWS providers globally.
EOS Incorporates in Singapore
In June 2011 EOS Defence Systems
Pte Limited was established as a wholly-owned subsidiary of EOS in
Singapore. Singapore is the
3rdrd country where EOS has established subsidiaries,
after the US and Germany.
The Singapore subsidiary has
three key objectives:
- Serve as a marketing and customer liaison office for the ASEAN
region, where EOS has current and potential customers;
- Coordinate an expanding EOS supplier network in the region,
enhancing EOS' ability to respond to production volume fluctuations
through a coordinated supplier network; and
- Establish depot spare parts and repair facilities in
Singapore, leveraging excellent
regional transport links to enhance EOS product support.
EOS Defence Systems Pte Limited is led by Mr Henry Heng, an aerospace industry specialist
with over 20 years of industry experience in military systems.
This subsidiary is already operational.
Executive Appointment
EOS has appointed Mark Bornholt
AM to a senior executive position in its weapon system
business to support expanding foreign customer requirements in the
face of challenging local conditions in Australia.
Mr Bornholt will oversee EOS marketing, which will be
re-organised with particular emphasis on closer coordination with
EOS internal programs for expansion and improvement of its remote
weapon systems family.
Mr Bornholt is a recently retired Australian Army Brigadier.
His extensive military experience and relationship with key
customers will facilitate the efficient allocation of EOS marketing
and development resources.
Economic Conditions and Capacity
During 2011 EOS Australian operations are contending with an
escalating exchange rate and a tight labour market, especially for
skilled staff. Consequently EOS will expand its Australian
operations at a slower rate than the expected growth in demand for
remote weapon systems.
Expansion of Australian operations going forward will be focused
on activities currently achieving the highest yield and with
competitive advantages resistant to further exchange rate
rises.
The EOS production facility in Tucson [USA]
was substantially expanded and upgraded in 2010, and it will
increase output to meet demand.
CROWS Developments
The US Army has recently released draft tender documents for the
CROWS program. This is the penultimate pre-tender phase, and
signifies that the Army is on schedule to release the formal tender
to qualified bidders late in 2011.
EOS has teamed with Northrop Grumman Corporation for this
opportunity and the team is actively positioning to provide a
highly competitive response to any request for tender from
Army.
Summary
The US Army CROWS program is currently on schedule for contract
award in early 2012 and extensive preparations for this competition
are in hand.
Independent of CROWS, the EOS remote weapon systems business
continues to grow, with a significant new customer added and
existing customers forecasting new orders.
EOS is taking prudent steps to expand and consolidate is
regional business, and laying foundations for further expansion
with key management appointments.
EOS contingency planning for the current economic conditions is
in effect with pre-positioned capacity in the US able to meet
demand.
Information:
Ben Greene
Ph: +61 414 365 658
www.eos-aus.com
ABOUT ELECTRO OPTIC SYSTEMS (ASX: EOS; OTC: EOPSY)
EOS has two main business divisions – military and space – where
it develops, manufactures and sells highly sophisticated technology
with a wide range of applications.
EOS remote weapon systems (RWS) are already in wide use with
advanced military organisations globally. In brief, EOS
remote weapon systems enable a weapon mounted atop a vehicle to be
fired rapidly and highly accurately by a gunner safely inside the
vehicle.
In its space division, EOS is a producer of telescopes and
technology to support space surveillance, space situation awareness
and space ablation. In space surveillance, EOS laser tracking
technology can track orbiting objects – as small as 2 cm in size.
EOS has around 140 employees, based in Canberra Australia, Tucson Arizona, Singapore and Deggendorf in Germany. The company also has
manufacturing centres in Queanbeyan and in Tucson, Arizona.
Forward-looking statements
This release may contain certain forward-looking statements with
respect to the financial condition, results of operations and
business of EOS and certain of the plans and objectives of EOS with
respect to these items. By their nature, forward-looking statements
involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future and there are
many factors that could cause actual results and developments to
differ materially from those expressed or implied by these
forward-looking statements.
SOURCE Electro Optics Systems
