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Thursday 25 July 2024

Vection Technologies (ASX:VR1): Wins multi-year defense contracts

Vection Technologies, is pleased to announce the award of two contracts valued at $1.2m on a Total Contract Value (“TCV”) basis. Of this, $0.4 million will be recognised as revenue in FY24 and the remainder across FY25 and FY26. The contracts are with technology service providers focused on cybersecurity and infrastructure security solutions for law enforcement, government agencies, and security agencies. The service is ultimately provided to international government agencies. These orders focus on cybersecurity-related ICT infrastructure and are expected to generate positive earnings. They are repeating awards from two well-established customers, highlighting Vection’s successful ongoing collaboration with customers and its consistent maintenance and enhancement of client relationships.

Highlights:

Award of Significant Contracts: Vection Technologies has secured two contracts worth a total of $1.2 million, with $0.4 million to be recognized as revenue in FY24 and the remaining amount spread across FY25 and FY26.

Focus on Cybersecurity: The contracts aim to provide ICT solutions that enhance cyber and data security for National Security Intelligence within the Defence, Space, Military, and Law Enforcement market segments. The increasing geopolitical tensions highlight the need for advanced technologies to improve monitoring capabilities and strengthen national security perimeters. Integration of AI algorithms will be crucial for accelerating and managing real-time big data analysis to support these efforts.

  Strategic Partnerships and Future Prospects: The contracts represent repeating awards from two established customers, emphasizing Vection’s successful collaboration and consistent relationship maintenance. The ongoing partnerships are expected to generate positive earnings and pave the way for future projects involving spatial computing solutions, enhancing data visualization and security management through 3D modeling and real-time analytics.

ASX announcement

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