Etherstack PLC (ASX: ESK) shares will be on watch this morning following the company's announcement regarding a new Australian Defence contract award. At market close yesterday, the Etherstack share price finished the day 0.8% higher at 62 cents.
It will be interesting to watch how the company's shares perform today as investors digest this morning's update.
What did Etherstack announce?
The Etherstack share price could be on the move today following the company's latest positive update.
In yesterday's late market announcement, Etherstack advised it has entered into a subcontract with Australian defence contractor, Electro Optic Systems Holdings Ltd (ASX: EOS).
The agreement will see Etherstack deliver services to an undisclosed project with the Australian Department of Defence.
The contract's value is estimated to be around $500,000, and the company expects it to be material in FY21.
Etherstack noted that this deal is now the second contract with the Australian Department of Defence. Previously the company signed a $4.1 million contract to supply its technology and associated delivery services to the Australian Government.
What did the CEO say?
Etherstack CEO David Deacon highlighted the company's attractive opportunity in the defence and government markets. He said:
We are pleased that the Australian Department of Defence are committing to Australian Industry Content via meaningful awards. Etherstack has had significant international defence wins over the past two decades and it is great to be winning and delivering projects in our home market
About the Etherstack share price
The Etherstack share price has risen more than 220% over the past 12 months. The company's shares hit a low of 12 cents in June last year, before sharply increasing later that month. Notably, its shares hit a record high of $3.70 after the company announced a global team agreement with major electronics house, Samsung.
Based on the current share price, Etherstack commands a market capitalisation of around $80 million.
