The airport security market continues to make headways with a market valuation totaling US$13.25 billion in 2022, and companies like Liberty Defense Holdings (TSXV:SCAN) are leading the revolution.
Projected to reach an estimated valuation of $25.91 billion by 2031 and growing at a compound annual growth rate of 7.74 per cent during the forecast period 2023 to 2031, airport security is a crucial component for transit hubs and international business operations.
As a multi-technology security solutions company focused on concealed weapon detection in high-volume traffic areas such as airports, the company has been locking in several contracts.
Case in point at the end of October Liberty Defense was awarded a contract with the Transportation Security Administration (TSA) valued at $1.25 million, with the option for a total valuation of $3.86 million.
Contract with the TSA
In a press release, the company said that through the contract, Liberty Defense Holdings will provide the TSA with open architecture software, end-to-end engineering development and the maturation of the high-definition advanced imaging technology (HD-AIT) wideband upgrade kit that will offer improved detection and passenger experience.
“We’re honored to receive this award from TSA, as it represents further validation of Liberty’s commitment to advancing the agency’s ability to detect emerging and evolving threats concealed on-person while enabling the efficient and effective use of screening resources at the airport checkpoint,” Michael Lanzaro, president and CTO of Liberty Defense Holdings, said in statement.
Lanzaro explained the kit will provide advanced threat detection as well as allow the TSA to bring third-party providers that could potentially provide other operational capabilities at the checkpoint.
The company’s HD-AIT platform is a millimetre-wave body scanner that enables new upgrades or new deployments in airports and is a next-generation high-resolution imaging system.
In a previous interview with The Market Herald Canada, Bill Frain, CEO of Liberty Defense Holdings, explained that the kit is a follow-on award that the company received from the TSA for the development of this upgrade kit to the existing body scanners that are used in airports across the US.
The kit that we’re providing at Liberty is an in-field replacement of that hardware that’s going to improve the detection, lower the false alarm rate, and actually improve the throughput capability, which will then overall improve the passenger experience,” Frain said.
He also said that the kit will save the TSA “hundreds of millions of dollars” by doing these infield upgrade kits.
Liberty Defense notches purchase order from Rapiscan Systems
In addition to its recent contract with the TSA, the company also locked in a purchase order from Rapiscan Systems for Liberty Defense’s HEXWAVE system.
The company said in a statement that Rapiscan Systems is purchasing 20 of the HEXWAVE units to sell internationally in security and aviation markets. It is expected that Liberty Defense will deliver five of the systems before the end of the year to meet initial demand.
“Over the past several months, we have seen demand increase significantly for HEXWAVE for enhanced screening at checkpoint applications, and it was important for Liberty to enter into this significant agreement with Rapiscan to meet that demand,” Frain said in a statement.
Under the terms of the distribution agreement, Rapiscan will add HEXWAVE to its security product and services portfolio. The agreement effectively expands Liberty Defense’s international reach in markets such as Europe, the Middle East, Africa, the Asia/Pacific region and Australia.
The investment corner
Over one month, shares of Liberty Defense have increased over 13 per cent, while its year-to-date increase totals 7.50 per cent. As of the time of this writing, Liberty Defense’s share price sits at $0.22.
As the company continues to address a much-needed market with its unique technology capabilities, Liberty Defense will only continue generating investor interest.
With the implementation of its HD-AIT across the US and deployment of the HEXWAVE platform all around the world, the sky’s the limit for Liberty Defense Holdings.
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