EOS 1.54% $1.28 electro optic systems holdings limited

http://www.eos-aus.com/sites/default/files/2016%20Annual%20Report...

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    http://www.eos-aus.com/sites/default/files/2016 Annual Report_3.pdf

    4. FORECAST AND OUTLOOK The operating loss of $886,692 for the 12 months ended 31 December 2016 was within management expectations. From 2017 EOS expects to rapidly increase revenue over a number of years, due to the Defence systems and Space systems businesses both maturing. Over recent years, EOS has been working closely with customers and industry partners to establish new markets for a new generation of RWS. This period of research, product development, product qualification and production preparation is nearing completion. EOS is presently negotiating multiple delivery contracts for a substantial number of next‑generation RWS.
    "EOS expects multi‑year defence contracts for advanced weapon systems to be in place within the next 60 days, with each providing strong revenue and profit growth for several years. The near‑term outlook for EOS’ Defence Systems sector is strong."
    The outlook for EOS’ Space Systems sector is positive. After program delays not associated with EOS sensor performance or market requirements, EOS is again accumulating space data capacity to meet demand for space data. EOS is confident that its Space Systems sector will independently contribute significant revenue and profit to the company from Q4 2018, commensurate with the substantial investments EOS has made in this sector. Financial uncertainties can adversely impact the governments which are EOS customers. The company cannot be certain that future customer procurements will continue as usual or that business conditions will not deteriorate from current expectations. The financial statements have been prepared on the basis of a going concern as detailed in Note 1.
 
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