Sarantel Making Progress on Military Radio Contracts

Half of a “substantial” order received in February from a leading military radio manufacturer has now been shipped, Sarantel said, with the group on track to fulfil the remainder of the contract by next February.

This order will generate over US$2 million in revenues.

Meanwhile, the US army's "Rifleman radio"  (JTRS) programme, which uses Sarantel’s rugged GeoHelix GPS antenna, is also making progress, it said.

The JTRS programme was awarded by the US Army to Sarantel's US military sub-contractor customer in July last year.  

Initial operational tests and evaluations have since been completed in Fort Bliss, Texas and in Afghanistan.

There is no indication that the alleged US Defense rows have had an impact on the progress of this program, Sarantel added.

When it awarded the initial contract, the US army indicated it needed more than 190,000 Rifleman radios, which would generate revenues in excess of US$6 million for the group.

David Wither, Sarantel’s chief executive said: "We continue to see strong growth in our key military market and expect revenue flows to gain momentum in the second half of 2012 and into 2013. 

Sarantel's technology is a critical component to a number of very large  military communications programs and we expect these programs to be increasingly important in the coming years. 

The backing from of a leading military customer to secure the HSBC loan facility earlier this year, further supports the significance of Sarantel's technology to our military customers."

Shares rose 6 per cent to 0.41 pence.