Point Roberts, Washington and Delta, British Columbia–(Newsfile Corp. – February 12, 2020)
Investorideas.com, a global investor news source covering security and defense stocks and its defense portal, Homelanddefensestocks.com release a sector snapshot following the money with news of recent contracts/revenues and acquisitions in defense stocks, featuring military robotics pioneer, A2Z Technologies Canada Corp. (TSXV: AZ).
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Global defense spending is at a record high. According to a report looking at the 2018 numbers, “Total global spending was up for the second consecutive year, to the highest level since 1988-the first year for which consistent global data is available. And world spending is now 76% higher than the post-cold war low in 1998.”
And the global growth is expected to continue.
For investors following the defense sector, the end of January saw some of the industry leaders in the US report earnings that were better than expected, with revenues easily surpassing estimates. US Aerospace and Defense ETFs also rose and benefited.
The billions of revenue realized from the industry leaders is also flowing to some of the smaller companies. A2Z Technologies Canada Corp. (TSXV: AZ), one of the top innovative technology companies in Israel, announced yesterday that the Israeli Ministry of Defense (“MOD”) has awarded the Company a three-year contract for CAN $1.5 million that will be paid over the life of the contract.
Under the terms of the contract the Israeli MOD will be leasing A2Z’s products and equipment for which A2Z will be responsible for maintenance for the duration of the contract. The equipment will remain the property of A2Z throughout. At the end of the contract the company will be able to determine how to best position the assets going forward. There is also significant potential for a new contract for the same services following the end of the three-year contract period.
“We are extremely pleased to have been awarded this contract and the continued strength we are seeing in our technologies and service businesses. This contract is not only a significant source of recurring revenues for the next three years but also deepens our relationship with one of our most long-standing government partners. A2Z and the Israeli MOD have been working together for decades now, and with our new innovative FTICS technology, which we believe is “the next seatbelt” to make automobiles safer than ever, we look forward to continue protecting the lives of both military and civilian populations in future decades as well,” said Bentsur Joseph, CEO of A2Z.
Israel’s Ministry of Defense is the governmental department responsible for Israel’s security at the political, military, and civilian levels with their primary objective being to ensure the safety of Israel. The MOD also promotes research and development in security technologies and supports veterans and their families.
A2Z is also expanding its business and robotics military technology into civilian markets and announced in mid-January that they signed a contract and received its first purchase order for $175,000CDN to provide sophisticated software for integration between applications and Point of Sale (POS) for a blue chip, New York Stock Exchange listed, Fortune 500 Company, which is a leading enterprise software and services provider in the finance, retail, hospitality, telecom, and technology industries.
Looking at future trends in the sector, Forecast International reports, “Despite a few dips in dollar-adjusted spending among large defense-spending nations, the overall market continues to reflect growth. Whether in Europe, the U.S., Russia or the countries of East and South Asia, the trend shows nations putting more money into resourcing their militaries and investing in future technologies and/or asymmetric capabilities.”
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52331