Electro Optic Systems (ASX:EOS) - CEO, Dr Ben Greene
CEO, Dr Ben Greene
Source: Electro Optic Systems
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  • Defence contractor Electro Optic Systems (EOS) has landed $14 million worth of contracts through its subsidiary, EM Solutions
  • Under the contracts, EM Solutions will deliver its Cobra satellite terminals to four naval forces
  • The terminals are designed to provide broadband to ships patrolling the Australian coast, keeping them connected to the mainland in any condition
  • Electro Optic Systems bought EM Solutions in September 2019
  • Already, EM Solutions has a record backlog of orders
  • Shares in Electro Optic Solutions are trading 5.93 per cent higher in early-afternoon trade, worth $4.29 each

Defence contractor Electro Optic Systems (EOS) has landed $14 million worth of contracts through its recently-bought subsidiary, EM Solutions.

Under today’s contract, EM Solutions will be delivering its Cobra Maritime Satellite Terminals to four naval forces. The systems will be delivered throughout 2020 and 2021.

EOS took control of the Brisbane-based satellite maker in September 2019 for roughly $26 million. According to EOS, EM Solutions now has a record backlog just six months after being bought by EOS.

Cobra satellite systems

EM Solutions’ Cobra products are designed to provide critical broadband services to ships patrolling Australia’s coastline.

Essentially, the systems are made to have extremely accurate satellite tracking capabilities and, as such, can keep a ship connected to the mainland through satellite communication regardless of weather conditions or the ship’s movement.

The Cobra terminals can operate at X-Band, Military Ka-Band, and Commercial Ka-Band frequencies. Simply put, these are different ranges of radar waves which serve specific roles in communication, tracking, and traffic control.

EOS said the Cobra terminals are now in use or on order with six of the world’s largest navies across four continents.

According to EOS, the Cobra systems give users “unprecedented flexibility and assuredness” for sea operations.

ADF support

EM Solutions CEO Dr Rowan Gilmore said the new contracts are a vote of confidence for the company as a trusted supplier of broadband satellite communications.

“The orders come on the back of the tremendous support the company has received from the Australian Department of Defence in the development and commercialisation of its Cobra terminals,” Dr Rowan said.

“As we continue to support the Royal Australian Navy with the deployment of Cobra terminals on multiple vessel types, the confidence shown in Australian space communications technology by multiple allied navies is a strong endorsement of the sovereign capability that has been fostered by Australian Defence Industry Policy,” he added.

EOS Group CEO Dr Ben Greene shared similar sentiments, saying the success of the Cobra tech underpins its potential for wider use in global satellite communications.

“Cobra is presently the most versatile satellite communication terminal available, providing users with access to both MEO (mid earth orbit) and GEO (geostationary orbit) satellites in multiple military and commercial bands, and from rapidly manoeuvring platforms such as fast naval vessels,” he explained.

EOS operates in three key sectors: defence systems, space systems, and communication systems.

Investors seem pleased with today’s new contracts, too. EOS shares are trading 5.93 per cent higher in early-afternoon trade, worth $4.29 each at 12:05 pm AEST.

EOS by the numbers
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