ESK receives digital radio network expansion order

By Megan Graham. Published at Dec 6, 2016, in Technology

Specialist wireless communications technology company Etherstack plc (ASX:ESK) today announced it had received an order for its equipment to be deployed on new sites for an existing P25 digital radio network established by the group in Australia.

The order, placed by ESK’s system integrator partner BAI Communications, is to expand the existing network at a value of AUD$422,000.

Importantly for the company’s balance sheets, the transaction is expected to come under revenue for the current financial year – thus boosting the numbers recovery after a quiet few years across the industry.

Etherstack plc CEO, David Deacon said of the expansion order: “During 2016 the company has continued to drive revenue growth through both new greenfield customers and our expanding installed user base. Substantial expansion orders demonstrate our customers’ high satisfaction with our products as well as fundamental improvements in our long term recurring revenues.”

In October, the company announced it had signed a substantial licensing contract with Japanese company NEC Corporation. The deal involved NEC – a company who integrate IT and network technologies, and have been around for over a century – incorporating ESK’s wireless technology into their products.

A month earlier, ESK announced a US$2.6 million contract with Ergon Energy which will bring in revenue over a five year period.

Both contracts boost Etherstack’s revenue guidance for 2016, which is currently on track to dwarf their figures for 2015.

Below is the company’s recap of contract wins for the 12 months to August 2016:

ESK has seen some share price fluctuations this year, and it could be argued that the current price doesn’t truly reflect the achievements listed above.

Here is a look of ESK’s share price over the last 12 months:

However it should also be noted that ESK is an early stage play and past or current share price performance is not reflective of current performance. Investors should seek professional financial advice if considering this stock for their portfolio.

If ESK can report robust revenue figures for FY 2016 as expected, it could be the catalyst the company needs to return to its 2015 highs.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!