VANCOUVER, British Columbia, April 10, 2012 /PRNewswire/ -- Northstar Electronics, Inc. (OTCBB – NEIK), which previously signed a Letter of Intent to acquire Echotec Sonar Corp., is announcing revenue opportunities within the sonar marketplace, along with an update to the LOI.
As previously announced, Echotec Sonar is developing High Definition Sonar (HDS) systems which are capable of 3-D imaging for the military, commercial shipping, and commercial fishing markets.
As the potential market sectors are investigated, early sales applications have been identified which are accelerating the development of the products and solidifying early revenue projections.
Leading market researcher, Documental Solutions, has indicated that the United States naval sonar market alone is valued at $3 billion per year in total spending and according to IBISWorld, "between now and 2016, revenue within the sonar device industry is forecast to $1.2 billion, including a 2.5% jump in 2012. During this period, demand will be driven by an increase in scientific R&D funding as businesses expand budgets after decreasing spending in 2008 and 2009, replacement demand from military customers, and rising demand from ship builders and fisheries."
Realistic opportunities for Echotec Sonar, considering sales with existing relationships and through new contacts, are expected to exceed $50 million dollars over the next five years.
Significant opportunities are seen within the defense and homeland security sectors, both of which have been growing budgets to retrofit existing equipment. Echotec and Northstar have deep relationships in this sector, giving it a strategic advantage in gaining contracts for providing threat detection systems.
Dr. Wilson Russell, CEO of Northstar Electronics, commented, "Even though these are early identifiable opportunities, I am confident in Echotec's advanced sonar technologies and, so, the strong projections come as no surprise. Echotec's expert team of engineers has been working on these technologies for a long time and the fruits of their labor should deliver excellent systems, which we believe will be widely recognized by users as exceeding their expectations for performance and quality. Our commercial systems should gain traction especially quickly with users. I'm satisfied that we can play a role in the improvement of overall safety of both our naval ships and commercial ships, as well as that of our ports."
The closing date for the Letter of Intent with Echotec Sonar has been extended until May 8, 2012 to better redefine the business plan to include new market sectors. This extension will aid both Northstar and Echotec, along with their shareholders and new investors, in the proper evaluation of these exciting market segments.
Echotec Sonar Corporation is a private Canadian company. The founders have over eighty combined man-years of expertise developing high frequency sonar products within the defense and commercial fishing industries. Echotec Sonar is a world leader in this field through experience, technical acumen, and a team diversity, which understands the needs of many defense and commercial entities.
Northstar Electronics, Inc., is a holding company with executive management specialized in design engineering, defense, advanced systems, security, sonar, systems integration, and prototyping fields. Northstar is actively pursuing opportunities through acquisition, joint venture, or merger to increase revenues and expand its base of subsidiaries.
For further information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL, [email protected], 800-631-8127 and/or Beverly Jedynak, Media Relations, Martin E. Janis & Co, Inc., [email protected], 312-943-1123
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SOURCE Northstar Electronics, Inc.