Rail Vision Ltd (NASDAQ:RVSN) announced that it received an initial purchase order of approximately $1 million as part of a contract with a U.S.-based rail and leasing services company.

What Happened: Rail Vision said it received an initial purchase order for approximately $1 million as part of a contract valued at up to $5 million with a leading rail and leasing services company in the United States.

The order is for the purchase of Rail Vision’s AI-based ShuntingYard products, which are expected to be installed during the third quarter of this year.

“We’re delighted with the successful execution of our contract with this esteemed customer, marking the receipt of our initial order from it,” said Shahar Hania, CEO of Rail Vision.

“Since the start of 2024, we’ve been expanding our presence in the US, achieving significant milestones in collaboration with leading companies in the rail industry. We intend to persist in our marketing endeavors, recognizing the growing demand for our innovative  AI-driven safety solutions.”

Rail Vision said the first phase of the contract is valued at $1 million and follow-on orders for additional products could be valued at up to $4 million. The contract also includes specific purchase quotas that provide the customer with exclusivity in the North American industrial railyards switching segment if met.

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RVSN Price Action: Rail Vision shares were roughly flat at $1.56 at the time of publication, according to Benzinga Pro.

Photo: Wolfgang Weiser from Pixabay.