Mobilarm in US Navy test deal

Marine safety equipment provider Mobilarm has achieved further progress in commercialising its submariner locator beacon, with the United States navy agreeing to purchase $300,000 worth of test units and engineering services.

Mobilarm said that following further testing, the United States Naval Sea Systems Command (NAVSEA) will look to purchase the beacon for its entire submarine fleet.

NAVSEA, which engineers, manufactures and maintains the US Navy fleet, agreed to the purchase after taking part in a training exercise on Garden Island.

Mobilarm was contracted by NAVSEA in April 2010 to develop a modified version of its submariner locator beacon for the US Navy, and now full-scale sea trials of the device are expected by mid-2011.

NAVSEA has stated that Mobilarm is the only known company with the required technology to meet the navy's technical and schedule requirements.

Mobilarm chief executive Lindsay Lyon said the purchase marked another key milestone in the company's relationship with NAVSEA.

"Their commitment to undertake a very costly and large-scale capacity exercise clearly indicates their enthusiasm for the technology," Mr Lyon said.

"We have already received enquiries from Navy surface fleets as a result of our ability to deliver on this project."

Mr Lyon said the US Navy had 71 commissioned submarines, meaning the potential for strong initial revenue was high.

Shares in Mobilarm, which listed in September last year, were up 6.67 per cent to 8c in morning trade.