Mobilicom Limited (ASX: MOB) is pleased to announce it has delivered more than 150 units of its Ground Controller Station (GCS) solution, with a combined value of more than $350,000, under its contract with a leading drone supplier.
This is the second commercial delivery of products under the contract, first announced 18 December 2019, which has now expanded to be worth more than $2.3 million with $1.1 million delivered upon thus far.
The customer is one of the largest suppliers of drones, small Unmanned Aerial Vehicles (sUAV) and robotics outside of the US and engages in a wide range of defense, homeland security and commercial programmes throughout the world with revenue of more than $3.6 billion.
Mobilicom CEO, Oren Elkayam, said the customer selected Mobilicom as vendor of choice for supply of the GCS product for the customer’s tactical drones and sUAVs. The customer is offering Mobilicom’s solution with all of its drones and sUAV platforms worldwide.
To fulfil the commercial quantities under this agreement and enable volume scalability for future projects, Mobilicom entered into an agreement with an Asia-Pacific electronic manufacturing company to build Mobilicom’s GCS system products.
Mr Elkayam said the company’s boosted manufacturing capacity enabled it to achieve greater volumes while maintaining gross margin targets, giving it more flexibility to meet customers’ needs, especially during COVID-19 related restrictions.
Working with this leading drone supplier has benefited our business in many ways. The contract with this client continues to grow from original value of $2 million to $2.3 million, and we are now capable of manufacturing our products at much higher volumes while still maintaining the high level of quality our customers expect,” he said.
“This marks the second commercial delivery under this contract and we expect to receive additional orders from this customer.”
Mr Elkayam said the customer will use also additional units to seed new projects which may ultimately lead to sales expansion beyond the existing orders.