Electro Optic Systems (EOS) has filed its half-year results, which revealed a 45 per cent drop in revenue and a net operating loss of almost $99 million.
EBIDTA came in at $34.7 million, compared to $288,772 in the prior comparative period.
In the results filing, EOS attributed the losses to 'delayed revenue recognition' due to supply chain disruption, a cost structure larger than required for current revenue, and most significantly a $54.4 million loss due to the 'impairment of assets and onerous contracts' held in Spacelink Corporation, the company's satellite data transfer subsidiary.
Management have announced that the company's total workforce will be reduced by 30 per cent.
EOS also announced it is undertaking a strategic review, which aims to simplify the business, undertake an organisation restructure, align R&D spending with commercial investment criteria, improve sales and marketing effectiveness, and prioritise capital towards core defence and space businesses.
Interestingly, the new 'leaner' structure will 'prioritise existing business lines' rather than 'anticipate requirements through customer planning documents.'
The announcement highlighted the potential provision of remote weapons systems to Ukraine as a short-term increase in revenue.
The company has entered into a financing agreement with major shareholder Washington H Soul Pattinson and Company, which has refinanced an existing $35 million loan and provided $20 million to support the restructure.