Embedded Systems Specialist COTS Technology "Leading the Localization of the Defense Industry"

"COTS Technology will leap forward as a company that enhances the status of K-defense through the advancement of embedded system technology."

On the 26th, Jiwon Cho, CEO of COTS Technology, a specialized company in SBC (Single Board Computer)-based defense industry embedded systems, held a press conference at 63 Square in Yeouido with key executives in attendance, revealing future strategies and visions following the company's listing on KOSDAQ.

Founded in May 1999, COTS Technology is a specialized company in SBC (Single Board Computer)-based embedded systems leading the localization of the defense industry. The company develops and manufactures computer equipment that meets defense standards such as temperature, humidity, vibration, and shock based on embedded systems, and these are applied to well-known weapons such as the K2 tank and Jangbogo submarine.

The company's core competency, embedded systems, refers to computer systems with dedicated software embedded to perform specific functions. To ensure the stability and performance of weapon systems, embedded system design capability is essential. The company has recruited top-level researchers and developers in the industry to conduct in-house embedded system development.

Based on these embedded systems, COTS Technology has been developing and manufacturing products such as ▲SBC (Single Board Computer), ▲military displays, ▲weapon system-mounted computer devices, and ▲weapon system systems.

In particular, the company's main product, ▲Single Board Computer, is a defense industry computer that differs from commercial computers by integrating multiple components onto a single circuit board, enabling operation under harsh environmental conditions. To use computer devices in the defense industry, signal integrity and power integrity are required to ensure error-free operation, and especially an efficient heat dissipation frame design capable of operating at high temperatures is necessary. COTS Technology's Single Board Computers meet defense standards through proprietary design know-how and design and manufacture products by determining specifications and standards according to the requirements of customers' weapon systems.

Moreover, the company produces ▲military displays, devices that display battlefield situations and system information; ▲weapon system-mounted computer devices that perform functions such as fire control, operation control, and turret drive control; and ▲weapon system systems that control interlocking signals such as power and communication signals among equipment constituting weapon systems. Through the development of these products, COTS Technology participates in the development of various weapon systems and has built a diverse track record ranging from land, sea, and air to guided weapons.

This core competency of COTS Technology has translated into business performance, recording sales of 41.8 billion KRW last year, a 31% increase compared to 31.9 billion KRW in 2021. This growth trend is also confirmed in the first quarter of this year. Sales in Q1 reached 7.6 billion KRW, a 14% increase compared to 6.6 billion KRW in Q1 last year, and operating profit grew by 646%, achieving the highest quarterly sales and operating profit margin in history. This solid performance is based on the stability of the order backlog, with an order backlog of 95.5 billion KRW secured in Q1, raising expectations for the company's further growth.

Through this listing, COTS Technology expressed its ambition to become a specialized embedded system company leading the localization of the defense industry. This ambition is deeply related to changes in defense industry trends and global geopolitical situations. The war in Ukraine that broke out last year has intensified military competition among countries, and Korea, which offers political and strategic advantages with price competitiveness, is emerging strongly in weapon procurement trends, benefiting domestic defense companies. Especially, as the nature of warfare shifts to network-centric warfare, the importance of advanced defense computers capable of processing vast amounts of data is expanding.

Jiwon Cho, CEO of COTS Technology, stated, "These changes in defense industry trends are directly linked to the demand for localization of SBC, our core business, and are expected to have a significant impact on the company's growth," adding, "We will expand beyond Korea to the global market based on specifications and compatibility comparable to foreign companies such as Curtiss-Wright, Mercury, and Abaco."

Meanwhile, COTS Technology plans to offer 1 million shares through this listing. The expected offering price is between 10,000 and 11,500 KRW per share, with a total offering amount of 10 billion to 11.5 billion KRW. After a demand forecast on the 26th and 27th, general subscription will take place on August 1st and 2nd, aiming for a KOSDAQ listing on August 10th. Korea Investment & Securities is the lead underwriter for the listing.

This content was produced with the assistance of AI translation services.