Sonar Marketplace Offers Opportunities Say Northstar Electronics

Market opportunities are there for high-definition, 3D imaging sonar, Northstar Electronics tells shareholders, updates Echotec LOI

Northstar Electronics, Inc. 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.

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.