01 December 2023
EOS expects 2023 revenue of $210m to $230m
Electro Optic Systems Holdings ("EOS" or the "Company" or the "Group) announces today that it expects revenue for 2023 to be between $210m and $230m.
EOS has not previously provided 2023 revenue guidance and has previously noted that revenue recognised depends on the level of new business secured and the timing of achievement of contract milestones, including project activity and the outcome of discussions with EOS customers.
During 2023, the Group has continued to widen its product and customer base, and to optimise the delivery under existing contracts. EOS has published quarterly activity updates on 30 January, 28 April, 31 July and 30 October 2023, setting out updates on market, customer and business matters.
EOS is however aware that a number of sell-side analysts have published their revenue forecasts for EOS for 2023 and EOS has been monitoring actual performance relative to these, in line with its continuous disclosure obligations. As a result, EOS is today publishing revenue guidance for 2023.
2023 Revenue Outlook
During November 2023, it was determined that the group had generated higher than expected revenue in October and, following further analysis completed this week, is likely to generate higher than initially anticipated revenue in November 2023 and December 2023.
This includes the impact of:
- Ongoing work during the period under an existing multi-year contract with a large customer in the Middle East. Deliveries and contract milestones have progressed positively during the period, particularly during Q4 2023, with some acceleration of milestone achievement compared to EOS’ previous expectations.
- Ongoing work by EM Solutions to deliver to customers, including initial ramp up work under the new SEA 1442-5 contract to supply terminals to the Royal Australian Navy. This contract was previously announced on 19 May 2023 and is for up to A$202m. The level of revenue achieved during October and November 2023, and an improved outlook for December, mean Q4 2023 EMS revenue will exceed EOS previous expectations.
- Work related to the sale of Remote Weapon Systems (RWS) products in July 2023 to a key customer in Western Europe, under a contract that was previously announced on 13 June 2023. This contract is for a total of EUR 32m.
Andreas Schwer, Chief Executive Officer for Electro Optic Systems said, "As we announce strong growth in our expected revenue for 2023, we recognise the extraordinary collaborative efforts that have brought us to this point. Throughout the past year, teams from across EOS, encompassing Defence, Space, KiwiStar, and EM Solutions, have united in delivering exceptional products to our global customers.
"Looking ahead to 2024, we take pride in knowing that EOS products are among the best in the world. Our Counter-Drone products stand as the most accurate and effective in the market. Our Satcom terminals are providing world-class connectivity to the Royal Australian Navy and a growing fleet of European customers. In the Space domain, our expertise in tracking remains unrivalled. The upcoming year will see us focusing on commercialising these products more effectively than ever.
Thank you to the EOS team, and our stakeholders for supporting EOS over the last 12 months."