SDS - Star Defense Systems Ltd. (TASE:SDS) has received a NIS 153 million order for three types of night vision equipment for targeting and observation from India's Ministry of Defense. Deliveries will begin in the third quarter and continue through 2012.
The order brings SDS's orders backlog to NIS 250 million. The company says that it expects follow-on orders from India.
SDS controlling shareholder Motti Solomon told "Globes", "This is a substantial deal for the company, as it involves systems we developed specially for the customer. We're already developing other new products for them, and in view of our success with this customer, we expect that it will continue to buy more products in the future."
Solomon added, "Over the next five years, the Indian Army will carry out massive procurements of new equipment, and since we specialize in equipment for the single soldier, we expect that we can continue to offer it more products." He said, "In the coming year, the company should enter into a partnerships with an Indian night vision equipment manufacturer, so will be closer to the customer and offer it support."
India's Ministry of Defense previous orders night vision equipment from SDS include a NIS 40 million order in February, a NIS 13 million order in September 2010, and a NIS 130 million order in August 2010.
As for other customers, Solomon said, "In the past six months, we began sales of thermal sights to countries in South America, and recently to Eastern Europe as well. We intend to offer these products to India. We're also testing smart helmets for the infantry and helicopter pilots, and I believe that we'll receive our first order by the end of the year."
Solomon controls 84% of SDS through Star Night Technologies Ltd. (TASE:STNT). SDS's share price rose 10.8% today to NIS 1.34, giving a market cap of NIS 82 million, and Star Night's share price rose 8.1% to NIS 3.73, giving a market cap of NIS 47 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2011
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