Elsight Limited (ASX:ELS) has been awarded sole supplier status by a key agency in the Israeli defence establishment following a year-long comprehensive governmental tender process.
The company has received an initial purchase from the agency, which cannot be named for national security reasons, which is expected to lead to additional orders in the future.
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The order includes an initial configuration of Elsight product, worth about US$217,000 (to be booked this quarter) and a small support and maintenance order to be spread and recognised over the next three years.
Details of the product configuration are also confidential for reasons of national security.
Notably, this order is the first direct result of the strategic sales effort that Elsight launched after the 2017 initial public offer.
Due to the relatively long sales cycle with large customers, the company expects this order to be a leading indicator of similar sales results in this area.
Elsight founder and chief executive officer Nir Gabay said: “We are grateful and pleased to be awarded this contract which validates the investment we have made in creating technically superior products for this industry.
“In particular, sole supplier status allows any part of the customer and agencies under the Ministry to be able to purchase the products under the contract from Elsight without needing to go to tender or seek competitive bids.”