Etherstack Signs $830,000 Follow-On Deal With Codan Unit for Digital Radio Technology; Shares Up 7%

MT Newswires Live

06/22

Etherstack (ASX:ESK) said its North American unit Etherstack Inc. has signed a follow-on $830,000 deal to supply further digital radio communications technology to Daniels Electronics, a unit of Codan (ASX:CDA), according to a Monday Australian bourse filing.

The company said the latest order follows on from a previous $2.3 million deal announced in December 2023, with hardware components manufactured by Etherstack in Australia.

Etherstack management expects the follow-on revenue to be fully recognized in the current financial year ending Dec. 31, 2026, with equipment sales of this type typically providing for additional long-term support revenues, the filing added.

Management expects first half revenue ending June 30, 2026 to meet or exceed previously provided guidance, with an update to follow post the end of the half-year period, it added.

Etherstack's shares rose almost 7% in recent Monday trade, while Codan's shares shed about 1%.

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