Tech: Mobilicom scores sales deal with Israeli defence-tech giant, shares bounce
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Communications company Mobilicom (ASX:MOB) has scored a new commercial deal for its remote network technology.
The agreement is with Elbit Systems, an Israeli-listed company that makes defence and security equipment including drones.
Elbit is the one of the world’s “largest suppliers of drones outside of the US” and posts annual revenues north of $US3.5 billion ($5.1 billion).
Mobilicom said it had been selected as a “vendor of choice” to provide its network-control technology for Elbit’s tactical drones.
The company’s core product is a communications platform that merges 4G technology with mobile MESH networks — peer-to-peer systems that can replace wi-fi or existing mobile phone carriers.
The technology is used primarily for “mission critical” projects that require an extra layer of communication stability that can be provided by existing infrastructure.
The deal with Elbit will generate revenues of more that $2m, Mobilicom said, and MOB shares bounced by around 20 per cent in morning trade following the announcement.
It’s a material amount for the company, given that revenue from customers for the nine months to the end of September amounted to $2.4m.
Mobilicom CEO Oren Elkayam said that being selected as a sole vendor for a company the size of Elbit was an “incredible achievement” for the company.
“We expect this to be a stepping stone toward additional projects and an exciting future with this customer,” he said.
Ed-tech company MGM Wireless (ASX:MWR) also announced a new sales deal, signing a distribution agreement with UK company Dixons Carphone, a retail conglomerate listed in London which owns brands such as Currys PC World. MGM said Currys PC World would stock and sell its Spacetalk product — an all-in-one device comprising a smartphone, watch and GPS navigation system.
The product will sell at retail outlets for £199 ($381), and CEO Mark Fortunatow said sales growth in the UK was 70 per cent higher than post-launch sales in Australia over the same time period. Shares in the company were up 5.5 per cent in morning trade to 28.5c, but down from 12-month highs of around 45c reached in late-October.