Elsight has secured a major order from a prominent defence contractor to develop and supply a new battlefield communications device. This order, valued at USD $380,000 (approximately AUD $562,000), represents Elsight's largest defence deal to date.
The initial order is part of a more extensive strategic programme that is anticipated to start in 2025.
Elsight's CEO, Yoav Amitai, expressed excitement over the new partnership. "We are thrilled to achieve this significant milestone and support this innovative approach to communicate in the most challenging environments. This order represents another validation of the value and development qualities that Elsight brings to today's defence market," Amitai said. He further explained, "After a long evaluation process, Elsight was chosen as an essential partner in this long-term programme, and we expect to reap the benefits of much larger programmes in the years ahead."
The first order includes the development and supply of a small initial batch of units, with the new product expected to be deployed by defence forces as part of a much larger strategic initiative scheduled to commence in 2025. A non-binding quotation for additional orders starting in 2025 has been provided to the contractor, with estimated potential revenue of at least USD $5 million (AUD $7.3 million) over the next one to two years. This would significantly increase Elsight's revenue, which stood at USD $1.1 million for the first half of 2024.
The new product is derived from the expertise Elsight gained with its Halo system, a highly reliable multi-link communications system. The Halo boasts over 250,000 operational hours, and this new device will be added to Elsight's product portfolio to serve both existing and new customers in commercial and defence sectors.
The communication device will leverage cellular and other technologies to support various applications involving both portable and stationary sensors. It has been designed for high-scale deployments in large quantities and adheres to all global defence standards and regulations.
Elsight intends to support other existing and new customers across a range of industries with this product.
Securing the order involved an extensive evaluation against several competitors, thereby affirming Elsight's strong value and expertise in the defence market. The order highlights the potential in the defence sector, which traditionally has longer sales cycles but can result in significantly larger revenues.
The communication device forms a key part of a strategic programme intended to enhance battlefield communications.
As the programme matures, Elsight anticipates increased orders and continued growth in the defence market, starting from 2025 and beyond.
