On 8 April 2019, UUV Aquabotix Ltd (ASX: UUV), an established underwater robotic company from the industrial sector announced that it had been awarded a contract worth US$30,500 by the United States Navy for the purchase of its SwarmDiver™ system. The sale of this hardware will be to support the test and evaluation activities in contemplation of potentially substantial follow on orders.
Within a year, this was the third award related to SwarmDiver™ for Aquabotix along by the United States Navy since the launch of the product.
SwarmDiver™ is a micro-sized, hybrid unmanned surface vehicle and the underwater vehicle which possesses swarming capabilities. SwarmDiver™ system is a highly versatile and has multiple uses such as intelligence and surveillance, harbor management and port security, disruption through explosives delivery, mine and unexploded ordnance detection and classification, stealthy data transfer, as well as hydrographic surveys.
Whitney Million who is the Chief Executive Officer of Aquabotix stated that the value of the initial order placement is small; it is an important as well as a meaningful step of the company towards conducting the business with the US Navy. It is also a matter of pride for the company as the product got an opportunity for operational use. Based on this, the company is optimistic that this will lead to more sizeable opportunities in future.
On 7 March 2019, the company announced that it was awarded a $10,000 in a non-dilutive research funding grant from the New South Wales Innovation in Australia. The Defence innovation network grant was intended to provide support to the project with the focus around the development of an innovative control system for autonomous maritime vehicles.
In the investor presentation of Aquabotix on 27 February 2019, the company stated its success since the launch of SwarmDiver™. In April 2018, SwarmDiver™ was launched. In June 2018, the US Navy funded the development contracts. The first sale was on 1 June 2018 and the second was on 2 January 2019. In December 2018, the company signed a strategic agreement for the development with Thales, which is a global defence company. The company had various potential sales that have progressed with a range of domestic as well as foreign militaries for the finished products. By 2022, the company aims to secure a substantial share of market opportunities of worth $2.7 billion for an autonomous underwater system.
The company announced earlier this year that it was awarded a contract worth ~ US$70,000 to support the US Navy project. The project will require further developments to the SwarmDiver™ that will end up with the testing and demonstration given to various US Navy personnel.
For the FY2018, which ended on 31 December 2018, the company reported a fall in the revenue from the ordinary activities by 79.3% to A$154,494. The net loss for the period was A$4,833,146, down by 6% on its previous corresponding period.
By the end of the trading session on 8 April 2019, the closing price of the shares of UUV was A$0.017, up by 21.429% as compared to its previous closing price. UUV Aquabotix has a market capitalization of A$2.27 million and approximately A$162.47 million outstanding shares.