Etherstack (ASX:ESK) signs $1.7m Australian Defence follow-on contract

• Etherstack (ESK) signs a second technology licencing agreement with the Australian Department of Defence valued at $1.7 million
• The contract was signed through its subsidiary and is a follow-on order to the initial $4.1 million project announced in December 2020
• The second signed agreement is the next stage of the project, with the majority of revenue to be recognised over FY2022 and 2023
• At market close, shares in Etherstack traded at 41.5 cents

Etherstack (ESK) has signed a second technology licencing agreement with the Australian Department of Defence valued at $1.7 million.

The contract was signed through its subsidiary and is a follow-on order to the initial $4.1 million project announced in December 2020.

The second signed agreement is the next stage of the project, with the majority of revenue to be recognised over FY2022 and 2023.

As with the first stage contract, Etherstack management expects that further work packages will be contracted based on performance of the currently contracted work packages, but advises that future work packages cannot be guaranteed.

CEO David Deacon said the program builds upon existing Etherstack technology and created a significant Australian export opportunity.

“The solution is repeatable and the first of its kind that will be compliant to a specific military standard,” he said.

“Etherstack expects interest from both existing and new radio manufacturer customers internationally, as well as other sovereign nations where we will attempt to rapidly capitalise through licensing the solution.

“We have a proven track record of engaging and contracting with this customer base.”

At market close, shares in Etherstack traded at 41.5 cents.