Optex Systems Hldg InCorp (OTCMKTS:OPXS) has announced a strategic deal, worth $6 million, with Nightforce Optics Inc. As per the details of the agreement, the former would sell optical viewing equipment to the latter, through its Applied Optics Center division. The deal would be initiated in phases and span over multiple years. Additionally, the company has also added a patented product to its portfolio, the ICWS Periscope”. The new invention has been targeted at improving periscope performance for use in military applications.
The AOC division of Optex was chosen to be the premium supplier for Nightforce. AOC is a recently acquired division of Optex, a manufacturer of leading viewing systems for domestic and military purposes. As per AOC’s GM, Bill Bates, Nightforce had specific manufacturing requirements to be met and AOC was able to deliver on those requirements. Conventionally, Optex focuses mainly on defense contracts, but has recently been trying to diversify its revenue stream. The deal with Nightforce marks the first success towards this goal.
However, the company’s new patented product is again focused towards military use. The company announced that unity periscopes are used in all armored vehicles to detect any ballistic threats and the new product would enhance this protection. Additionally, the new product design would allow armored vehicle manufacturers to come up with new designs. However, the new design does not mean that old vehicles cannot be upgraded, the design has been carefully planned to make room for upgrades.
Optex also revealed that previous periscope designs had some drawbacks, some of which have now been dealt with. Optex also received encouragement from Nightforce’s product and development manager, who stated that the deal with Optex is a step in the direction to provide top of the line products to our customers. Apart from the US military, Optex also caters to the varying needs of foreign militaries, with respect to viewing equipment.
Optex Systems Hldg InCorp (OTCMKTS:OPXS) closed at $0.0081, after trading 170.91 million shares and gaining 2.53% on May 1.