Elsight Halo design win strategy keeps proving itself with new repeat order

Recognised industry leader in drone connectivity solutions Elsight is continuing its upward trajectory with a repeat order from Spright, a subsidiary of a leading provider of airborne medical services in North America.

This is Elsight’s (ASX:ELS) second repeat commercial order for Halo units received from Spright in the past 45 days following the five year agreement announced earlier this year.

That agreement saw Halo chosen as the command and control (C2) reliable link provider on all Spright’s unmanned aerial vehicles (UAVs). The Elsight developed platform delivers fast and secure data transmission and end-to-end connectivity for UAVs, ensuring safe flying Beyond Visual Line of Sight (BVLOS).

As part of the initial agreement Spright also became an official US reseller of Halo.

Similar to the first order from Spright, this latest one consists of both upfront hardware revenue as well as recurring Elsight cloud and service level agreement (SLA) revenues.

Further orders are expected over the second half of calendar 2022.

Critical service

Privately-owned Air Methods Corporation provides emergency services to more than 100,000 patients annually across 48 American states and Haiti.

Spright is its wholly owned drone division and was created to help solve many of the toughest challenges facing health services for communities across the US.  Its goal is to be the United States’ largest drone operator in the medical delivery sector.

Another Design Win

Beyond its commercial value, this order is additionally another validation of Elsight’s Design Win strategy that embeds Halo as a critical component in drone design by manufacturers in the burgeoning industry.

CEO Yoav Amitai said of Elsight’s latest order: “This repeat order from Spright confirms the compelling value of ‘Halo’ as the ultimate connectivity solution for our customers.”

“We are delighted to continue this close partnership with Spright as they use the ‘Halo’ to provide an improved range of services for their customers.”

“Also, as a repeat order that required minimal intervention from our sales team, it’s another strong validation of our ‘Design Win’ strategy and its enormous power as a growth engine for the Company.”

“The flexibility inherent in ‘Halo’ means the various use cases being fielded by Spright will all be supported.

“We look forward to seeing Spright continuing to expand across the United States and into Europe, building a long-term positive relationship between Elsight and Spright.”

Taking off

Elsight’s deep tech has attracted some other high-profile clients over the past few months in particular.

As presented in the company previous Investors Webinar following the 2Q22 quarterly report, Elsight continues its great momentum with new customers onboarding from various industries and regions.

Elsight announced its contract to supply its Halo technology to Brazilian company Speedbird Aero for the critical task of controlling its drones delivering packages for commercial, industrial, and healthcare uses.

Amitai believes that Elsight has the right strategy in place to continue to deliver critical connectivity to the fast evolving drone industry.

“While the embryonic drone market starts to develop, our Design Win strategy continues to prove the fruits of patience as we grow organically alongside the market expansion. We see this happening as our Design Win partners begin to move from the testing phase to implementation and service launch” he said.

This article was developed in collaboration with Elsight, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.