Tech: AVA scores additional orders for its perimeter-defence technology
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Security tech company AVA Risk Group (ASX:AVA) had some good news for the market this morning with a couple of new government orders.
Both orders are from AVA’s Future Fibre Technologies (FFT) division, which makes products that integrate with CCTV cameras, infra-red devices, motion detectors, and anti-penetration and thermal sensors.
FFT products are used as part of perimeter-defence systems for secure sites across government, defence and commercial industries.
There’s a $630k order out from the US government for FFT’s Aura Ai-2 platform, which applies artificial intelligence to detect and locate intruders looking to climb or cut their way into protected sites.
The company also has a $350k purchase order for the SecureFence platform, to “protect military installations in a South East Asian country”.
Products equivalent to around half the value of those orders will ship before the end of the year and be booked as revenue in Q4.
AVA CEO Scott Basham said the income was semi-recurring in nature, with over half of the new products purchased made for the purpose of “upgrading sites protected by FFT’s legacy technology”.
The additional order demonstrates the “large addressable market to upgrade the 1,900 systems already installed within our large global customer base”, he said.
The company reaffirmed previous revenue guidance for the December quarter, sticking to its quarterly income forecast of $9m for Q2.
The forecast is broadly in line with AVA’s Q1 result when it booked $9.9m of revenue, over half of which came from the FFT division. Shares in the company have bounced off October lows, but the stock is still down from its January highs above 20c.