Elsight awarded sole supplier status for Israeli defence agency
Elsight’s first significant order is worth approximately US$217,000 plus support and maintenance.
Mobile security and surveillance solutions provider Elsight (ASX: ELS) has been awarded sole supplier status for a key agency in Israel’s Ministry of Defence and will fulfil a contract for the supply of a product, support and maintenance package worth US$217,000 over three years.
While specific details of the client and package have remained confidential for Israeli national security reasons, Elsight has confirmed the order includes an initial configuration of its product as well as a small support and maintenance component.
Elsight was the only company from a number of respondents to the original public tender which was able to meet the technical requirements of the project.
The tender process was eventually converted to a “Single Supplier” procurement route after Israeli officials conducted extensive field tests and evaluations of Elsight’s technology, including the use of its products in live training scenarios.
Sole supplier status allows any agency within Israel’s Ministry of Defence to purchase products under the Elsight contract without needing to go to tender or seek competitive bids.
Elsight chief executive officer Nir Gabay said the Israeli contract is the first direct result of a strategic sales effort launched after the company’s 2017 initial public offering.
He said due to the relatively long sales cycle with large customers, the order may be a leading indicator of similar sales results in the same industry.
Multichannel technology
Formed in 2009, Elsight gained early commercial success with its Multichannel video communications technology for special forces clients worldwide, providing live video, audio and other data transmission as well as recording capabilities via multiple 3G networks, Wi-Fi or satellite.
Multichannel has been marketed as a standalone solution or a “gateway” to the rest of the company’s product range.
Today, Elsight is a strong player in the military and para-military space, as well as in the civilian market for applications relating to the security of sensitive facilities such as airports and oil and gas farms.
Last month, Elsight said its focus for the remainder of 2018 will be to build sales and marketing capability, develop and close deals in progress, and grow a research and development capacity to support its growth.
“Management looks forward to continued growth from [the next quarter] and onwards based on progress [with] Israeli Defence, UK homeland security and south-east Asian sectors, as well as an increase in the dollar amount of prospective orders in the pipeline,” the company said.