This was written back in Feb 2006, I believe the document is incorrect in a number of areas, particularly the part that says that EOS will earn the lions share, this question was asked at one of the MST AGM's, the answer was that MST would earn the lions share because it was the enabling technology, MST weapons are unique, but there are a number of other companies that make RCWS's, just look at what the US did to EOS when it chose Kronsberg for their RCWS's for instance, it does however give an indication of what sort of money they are talking about!and Ben Green told Janes last year that the Redback was going into production this year, and I believe him!
PS I believe the derivative models they speak are possibly Firestorm and the CIWS! and isn't it great that MST has chosen an Aussie firm for the FCS and Gymbal?
http://72.14.235.132/search?q=cache:y6Z84130CzkJ:firecontrolsystems.com.au/pdf/Ord%2520Minnett%2520Redback%2520update%2520220206.pdf+sales+redback+40mm&hl=en&ct=clnk&cd=1&gl=au
While it is early days, the Redback and any derivative weapon models could potentially represent another market of similar size to CROWS given its diversity of uses and versatility. It will probablybe cheaper to buy (c.$180-200k per unit) and EOS would potentially earn the majority of the revenue split, probably >75%. The EBIT margins on sales would likely be in the order of 15-20%.
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ELECTRO OPTIC SYSTEMS HOLDINGS LTD (EOS) 22 FEBRUARY 2006
Assuming sales of 6,000 Redback and derivative units at a margin of 15% gives potential EBIT of $135m spread over several years. This is significant when compared with EOS’ 2007 EBIT forecast of $10.8m
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