Etherstack Secures US$830K Order From Codan Partner for Radio Technology

Etherstack secures US$830,000 follow-on order from Codan channel partner

Etherstack has signed a US$0.83 million contract to supply digital radio communications technology to North American channel partner Daniels Electronics Ltd, a subsidiary of Codan Limited (ASX:CDA). The follow-on order builds on a prior US$2.3 million deal announced in December 2023.

The equipment will be manufactured by Etherstack in Australia. Management expects revenue from the contract to be fully recognised in the current financial year ending 31 December 2026.

This repeat order from the same channel partner indicates product satisfaction and signals potential for an ongoing commercial relationship. Hardware sales typically generate additional long-term support revenue streams associated with mission critical network communications equipment.

What are mission critical radio communications systems?

Mission critical radio communications are specialised wireless technologies designed for sectors where failure is not an option. Public safety agencies, defence forces, utilities operators and transportation networks require communications equipment that functions reliably under extreme conditions.

Etherstack develops, manufactures and licenses this technology for wireless equipment manufacturers and network operators globally. The company’s solutions are deployed in radio communications equipment used in demanding operational environments across public safety, defence, utilities, transportation and resource sectors.

These systems differ from commercial mobile networks because they prioritise reliability, security and performance in situations where lives and critical infrastructure depend on uninterrupted communication.

Recurring revenue opportunity beyond the initial sale

Management highlighted that equipment sales of this type provide scope for long-term support revenues. Mission critical communications equipment requires ongoing maintenance, software updates and technical support to maintain operational readiness.

This creates a revenue opportunity beyond the US$0.83 million headline figure. Initial hardware sales can seed multi-year support contracts, improving revenue visibility over time as installed equipment generates recurring income through service agreements.

Mission-critical government projects have demonstrated a pattern of scope expansion over their lifecycles, with Etherstack’s primary UK government contract recently adding £1.53 million in professional services revenue after the Department agreed to a functional scope change.

First half revenue tracking to guidance

Etherstack management expects first half revenue (ending 30 June 2026) to meet or exceed guidance provided on 28 April 2026. An update will follow after the half year period closes.

The confirmation provides near-term confidence ahead of H1 results without disclosing specific revenue figures.

Building a North American revenue base

The order was signed by Etherstack Inc., the group’s North American subsidiary. The Daniels Electronics relationship forms part of Etherstack’s channel partner strategy in North America, where defence and public safety markets represent significant addressable opportunity for mission critical radio technology.

Etherstack maintains a global footprint with offices and R&D facilities in:

• London, United Kingdom
• Reading, United Kingdom
• Sydney, Australia
• New York, United States
• Annapolis, United States
• Yokohama, Japan

This geographic reach positions the company to serve mission critical communications requirements across multiple jurisdictions and regulatory environments.

The North American channel partner strategy runs alongside a growing domestic government portfolio, with Etherstack’s subsidiary Auria Wireless holding an Australian Government contract with the Department of Home Affairs covering wireless network services at major ports and airports through to December 2028.

Key deal terms at a glance

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