What’s boosting the Electro Optic (ASX:EOS) share price today?

The company’s shares are pushing into positive territory.

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An Army soldier in combat uniform takes a phone call on his mobile phone in the field

Image source: Getty Images

The Electro Optic Systems Hldg Ltd (ASX: EOS) share price is edging higher during afternoon market trading. This comes after the defence contractor announced a successful demonstration of its C4 Edge program.

At the time of writing, the Electro Optic Systems share price is up 2.21% to $2.54.

What did the defence contractor announce?

In today’s statement, Electro Optic Systems advised that the Australian Army-sponsored industry initiative, the C4 Edge program, has achieved a major milestone.

A battlegroup and below prototype demonstration took place at the Majura Field Firing Training Range in the ACT on Monday.

The demonstration involved a number of mounted, dismounted, and uninhabited platforms across a single network in a combat environment.

Electro Optic Systems said high-ranking Australian military commanders were in attendance to watch the test.

C4 Edge is a collaborative industry program involving 30 businesses. It aims to provide battle critical communications solutions for military operations on land.

This incorporates locally-sourced combat radios, satellite terminals, cryptography, networking middleware, command applications, user interfaces, batteries, and power management into a coherent system.

The government defence industry policy has sought greater emphasis on sovereign solutions. As such, the defence department’s potential investment in all land C4 programs is estimated to exceed $5 billion over the next decade.

EOS defence systems Australia CEO, Matthew Jones, commented:

C4 EDGE as a demonstration of Australian industry capability has surpassed expectations – proving that it has the capacity, capability and will to deliver a C4 system that can meet the future needs of the Australian Army. C4 EDGE has delivered a roadmap for the development of the sovereign C4 eco-system including options to take the demonstration proof of concept through to commercial production.

Electro Optic Systems share price snapshot

It has been a difficult year for Electro Optic Systems shareholders, with the share price tumbling about 60%. The company’s share price fell to a 52-week low of $2.28 this week before rebounding strongly.

Electro Optic Systems commands a market capitalisation of $381 million and has about 150.9 million shares on issue.

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Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and 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.

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