Why the Electro Optic Systems (ASX:EOS) share price is charging 5% higher

The Electro Optic Systems Hldg Ltd (ASX:EOS) share price is surging higher on Friday after announcing a major breakthrough…

| More on:
rise in asx tech share price represented by digitised rocket shooting out of person's hand

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Electro Optic Systems Hldg Ltd (ASX: EOS) share price is pushing higher on Friday morning.

In early trade, the space, defence, and communication systems provider’s shares are up over 5% to $5.69.

Why is the Electro Optic Systems share price on the rise?

Investors have been buying Electro Optic Systems shares after it announced a major breakthrough in laser technology this morning.

According to the release, the company has significantly advanced the global effort to mitigate space debris through its Guide Laser technology.

This innovation allows high speed adaptive optics to form laser beams that can track and move space debris at lower altitudes and faster speeds than ever previously possible.

This intellectual property was developed in collaboration with the Space Environment Research Centre (SERC) and will now be commercialised and owned by Electro Optic Systems. Planned applications include space debris mitigation and high bandwidth satellite communications.

The company notes that approximately US$700 billion worth of global space infrastructure currently delivers essential services globally. This includes communications, navigation, resource management, banking, weather forecasting and climate change monitoring.

This infrastructure is at risk from space debris ranging in size from spent rocket stages as large as buses, to flakes of paint measuring only 5mm. As this debris typically travels at speeds in excess of 8km per second, even very small objects can badly damage or destroy satellites. This could make the company’s technology very popular with the owners of this infrastructure.

Management commentary

Electro Optic Systems’ CEO, Dr Ben Greene, said: “Space debris is a major societal threat, globally but especially in Australia due to our heavy economic dependence on space assets. For decades EOS has been a world leader in the tracking and classification of space debris. Our accurate, dynamic database of space objects is the key pre-requisite for the active manipulation of those space objects from the ground using lasers, but this capability has long been out of reach, requiring major advances in technology.”

“EOS already makes a major contribution to mitigation of the space debris threat through our accurate space debris tracking, but after international coordination we expect to make a further contribution by actively moving hazardous debris from impact trajectories. The reduction in risk from space debris has broad societal benefits as well as direct benefits to EOS, as a satellite proprietor and space operator,” he added.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

Why is the Lake Resources share price powering up 17% today?

What's going on with the Lake Resources share price on Tuesday?

Read more »

A Cronos Australia farmer and ASX cannabis shares investor stands in a field of cannabis plants and smiles at the camera
Share Gainers

Why is the Incannex share price spiking 8% on Tuesday?

The stock has caught a bid on Tuesday.

Read more »

A little Asian girl is so excited by the bubbles coming out of her bubble machine.
Share Gainers

Why has the Redbubble share price burst 17% higher on Monday?

What pushed the e-commerce company's shares higher today?

Read more »

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
Share Gainers

Guess which ASX tech share just soared 40% on takeover news

This small-cap ASX tech share has shot up 40% today.

Read more »

Woman sits in lotus position on the sand in front of a lake as another woman leapfrogs over her.
Share Gainers

Why is the Lake Resources share price leaping 11% today?

Lake shares extend gains today.

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher

These ASX shares are starting the week strongly...

Read more »

A man leaps through the air with a swimming cap and a look of uncertainty.
Share Gainers

Why is the Appen share price jumping 10% on Monday?

What's going on with Appen shares?

Read more »

a man sits on a rocket propelled office chair and flies high above a city
Materials Shares

Why is the Sayona Mining share price surging 15% on Monday?

Why are Sayona shares rocketing 15% higher on Monday?

Read more »