Management is convinced that they will announce several large...

Management is convinced that they will announce several large orders before year’s end. Thereby creating an order backlog of 500 million +, which in my opinion will be the start of billions of revenues in the years to come.

Some interesting parts in today’ s announcement:

They currently expect orders from two other international customers, both of which exceed the current Orbital ATK contract in scale and term. At the SAME scale and size it would add up to 510 million (3x170). In my opinion, EOS is finetuning it’s forecast and now tells us to expect an order backlog at the end of 2017 which will be significant higher than 500 million, instead of 500 million+.

In fact, they say: “Either of these new programs would raise the total production capacity required for the product to more than $120 million per year”. For the current Orbital order “the annual shipment values are up to $75 million.” This means the two orders combined will result in more than 90 million of annual revenues ( (120-75) x 2 ).

So, at the end of this year, we can expect annual revenues in the years ahead, based only on the order backlog of 2017 and the R-400S-Mk2 product, of at least 165 million (75+45+45).  Capacity expansion is indeed neccessary. Looking at a profit margin of 15%, based on sales & aftersales, this backlog alone will result in an annual profit of 24.75 million for several years….

In the may presentation they mentioned a production cost per R-400S-Mk2 of 225K and a price per product of 250k, hence a profit margin of 10%. Now they say they supply approximately 600 weapons systems to Orbital ATK for 170 million. The price per product has gone up 13% to 283K. Hopefully this translates into a higher profit margin.

And this is just the R-400S-Mk2 product. EOS also expects billions in sales from the  R2000 Remote Turret System, end of 2018 onwards, and off course Space Systems, orders are expected to kick in end of 2018.


Marketcap as of close 14 september: 158 million…