The Electro Optic Systems Hldg Ltd (ASX: EOS) share price has been a positive performer on Friday morning.
In early trade the aerospace and defence-focused technology company's shares are up 1.5% to $6.00.
Why is the Electro Optic Systems share price pushing higher today?
Investors have been buying Electro Optic Systems shares on Friday after it announced another new contract win with the Australian government.
This follows a recent announcement which revealed that the company had signed a $94 million contract to supply the government with 251 Remote Weapon Stations and related materiel to enhance the Australian Army's capability. The 251 Remote Weapon Stations will be integrated on to Bushmaster and Hawkei protected mobility vehicles. Forty Remote Weapon Stations are scheduled for delivery in the fourth quarter of 2020, with the remainder due to be delivered in calendar year 2021.
Today's announcement reveals that Electro Optic Systems has been awarded a $5.1 million contract through its Space Systems business by the Australian Department of Defence.
The company hasn't provided many details about the contract, other than that it involves technical development services and is scheduled to commence in the fourth quarter of calendar year 2020. The contract is then expected to run for two years.
What does the company's Space Systems business do?
The Electro Optic Systems Space Systems business specialises in applying company-developed optical sensors to detect, track, classify and characterise objects in space.
Management notes that this information has both military and commercial applications. This includes managing space assets to avoid collisions with space debris, missile defence, space control, and space protection.
With the Electro Optic Systems share price down 20% since the start of the year, shareholders will no doubt be hoping this announcement is the rocket fuel it needs to get it heading back in the right direction again.
