XTEK goes after big fish
2 minute read
XTEK Limited (ASX:XTE) is going after a big fish – aiming to supply the Australian Army with 78 “small unmanned aircraft systems”.
XTEK has told its shareholders that it has responded to an open tender put out by the Army last year.
The contract will include supply of the aerial vehicles, training, repair, and spares support post-acquisition.
The potential value of the tender hasn’t been worked out yet, but it expected the contract will roll on in April to July next year.
Should XTEK be successful it would be a further fillip for its unmaned aerial vehicle (UAV) unit, which got a boost last year when it moved to acquire Simmersion Holdings.
Simmersion Holdings is a 3D mapping business, and at the time XTEK eyed using its UAV’s to take data from the sky to provide to urban planners.
In other XTEK news, it said it had been named as a preferred tenderer on the supply of tactical bomb response equipment to an unnamed government client.
The contracts have the potential to bring in more than $1 million, but they still need to be worked through and the money to be signed off by the federal Government.
More about XTEK
XTEK develops, builds and sells its own hardware but to ensure a vast range of solutions, XTEK also imports and distributes a range of other products. Overall, XTEK supplies over a hundred different products ranging from rifles to explosives detection kits.
XTEK’s proprietary technology has been branded as XTclave and XTatlas.
XTclave is a manufacturing technology to make more effective bullet proof composites. This can be used in personal body armour, helmets, aircraft and vehicle components which are typically used by the Military.
XTatlas is a tool that generates detailed aerial imagery and superimposes it onto existing maps such as Google Maps.
Together, XTclave and XTatlas are unique and proprietary to XTEK with the US and Australian authorities already doing business with XTEK.
In 2014-15, XTEK’s revenues topped $12M with the company becoming cash flow positive and profitable after cost, for the first time last year.