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- Surface engineering company LaserBond (LBL) has entered a licence agreement with a North American manufacturer of high-performance products and equipment
- LaserBond will supply its specialty cladding equipment which is expected to provide $1.5 million in revenue
- Reportedly, the undisclosed licensee carried out extensive testing of the performance of LaserBond’s technology with “tremendous results”
- Essentially, laser cladding is a procedure that allows various industries to reduce maintenance costs and enhance the performance of their equipment
- While revenue from this deal won’t be recognised until FY22, LaserBond expects to see a 10 to 12 per cent revenue growth from FY20 to FY21
- Company shares are up 1.24 per cent and are trading at 81.5 cents
LaserBond (LBL) has entered a licence agreement with a North American manufacturer.
While it hasn’t been disclosed who the deal has been signed with, the company is a manufacturer of high-performance products and equipment used in primary industries.
The licence agreement involves LaserBond supplying its namesake cladding equipment during the 2022 financial year which will provide revenue of $1.5 million.
Laser cladding is an additive manufacturing procedure that utilises energy from a high-power laser to metallurgically bond a surfacing material to a substrate. These technologies allow various industries to reduce maintenance costs and enhance the performance of their equipment.
Additionally, the deal will see ongoing licence fees of around $144,000 per annum and up to about $670,000 per annum in consumable sales for a seven-year term.
“The licensee carried out extensive testing of the performance of our surface layers against alternatives in their applications with tremendous results. The agreement further demonstrates the value our technology delivers in international markets,” LaserBond CEO Wayne Hooper said.
Interestingly, the surface engineering company has received multiple enquiries regarding domestic and international licence agreements. It’s confident it’ll close more agreements like this in the upcoming financial year.
While revenue from today’s agreement won’t be recognised until FY22, LaserBond expects to see a 10 to 12 per cent revenue growth from FY20 to FY21.
Company shares are up 1.24 per cent and are trading at 81.5 cents at 3:14 pm AEST.
