Historically the EM business was purchased with Spacelink in mind- i.e. create an integrated Sat Com solution. At least EOS gets something back from the debacle that was Spacelink. But you can see how they would classify this as non-core being outside of optical tracking and laser technology etc.
Selldown of EM impacts guaranteed contract backlog and revenue contribution. These are negatives in the immediate impact on the business. They need to get the Defence business up and running into postive EBITDA and get that contract backlog up with pipeline conversion.
At least this gives EOS the cash to further improve the CUAS offerring and integrate their solution with AI overlay and Laser development. Its on management now to still display capital discipline while developing the next leg of growth.
EOS Price at posting:
$1.26 Sentiment: None Disclosure: Held
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