Metal Storm serious about hand gun sales
May 22, 2004 - 8:30AM SMH
Metal Storm Ltd said it had set up a subsidiary to commercialise a civilian hand gun that could produce revenue for the cash-burn ballistics company in 2006.
At its annual general meeting in Brisbane, Metal Storm also said it was in its strongest financial position in history but declined to pinpoint when it expected to be cash flow positive.
Metal Storm reported a net loss of $6.4 million for 2003.
Chief executive Chuck Vehlow told shareholders the company was focussed on the 40mm and 9mm calibre products, with priority applications including a grenade launcher, fire-fighting system and smart gun.
"(A consumer version of the company's Variable Lethality Enforcement handgun for the general US market) has the potential to be a significant money earner for the company over the next decade," he said.
"Revenue could commence in 2006.
"We are today announcing the formation of a US subsidiary company that has been structured specifically to capitalise on the demand for the commercial vision of the O'Dwyer VLE electronic handgun
"This new subsidiary company will focus solely on commercialisation of this product."
Mr Vehlow said any commercialisation timeline for the 40 and 9mm products would be related to ongoing success of product trials and continued market support.
The company has committed to a strategy to that end, which involves developing commercialisation timelines, live fire demonstrations and expanding defence sector relationships.
"You can have confidence Metal Storm has struck the right chord," Mr Vehlow said.
"The significance of Metal Storm's achievements in the last 12 months should not be underestimated for a company at this stage of development, operating in the competitive US defence markets.
"The company is now in the strongest financial position in its history."
When asked when the company would become cash flow positive, interim chairman Terry O'Dwyer said the issue of timing was difficult for a defence firm like Metal Storm.
"What we are very comfortable about is that this is a technology that will be categorically picked up, it is indeed being picked up now," he told reporters.
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