Signal Technology Awarded $4.1 Million Electronics Contract for Defense and Homeland Security Applications
DANVERS, Mass.--(BUSINESS WIRE)--Oct. 1, 2002--
Company Selected as Prime Contractor to Design and Develop a
System of Networked Microelectronic Sensors for Intelligence,
Surveillance & Reconnaissance
Signal Technology Corporation (Nasdaq:STCO) today announced the award of a cost-plus contract valued at $4.1 million from an arm of the U.S. Department of Defense (DOD) for the first phase of a defense and homeland security electronics program. Signal Technology has been selected to lead a team from academia and industry that will design and develop a system of networked, ultra-miniaturized microelectronic sensors. The system will collect and distribute tactical and strategic data for intelligence, surveillance and reconnaissance applications.
The $4.1 million award is for the first, eight-month phase of the program, which is expected to extend through development and deployment phases over the next several years. Consequently, Signal Technology expects the contract, which has been structured on a cost-plus, fixed-fee basis, to be funded through 2004 under significant follow-on contract releases.
Program management as well as systems architecture development and network integration activities will be centered at Signal Technology's Dallas, Texas, engineering design center. In addition, the Company will develop ultra-miniaturized module technology for the program. As prime contractor and systems integrator, Signal Technology will direct a development group that includes North Dakota State University, Fargo, N.D.; Paratek Microwave, Inc., Columbia, Md.; Superconductor Technologies Inc. (Nasdaq:SCON), Santa Barbara, Calif.; and Tessera Technologies, Inc., San Jose, Calif.
"The DOD selected Signal Technology as prime contractor for this program in recognition of our proven ability to develop complex systems architecture and sub-system solutions, as well as our proprietary ultra-miniaturized modular technology," said Chairman and Chief Executive Officer George Lombard. "This award represents a milestone in our determination to grow the Company's defense business. The initial phases of the program are expected to result in follow-on development contracts amounting to $20 million to $25 million in additional revenue through 2004. Looking ahead to 2005 and beyond, we expect the full-rate production phase to add significantly to Signal Technology's revenue and profitability."
Signal Technology was awarded the contract by the Defense MicroElectronics Activity (DMEA). "We have been working closely with the DMEA and the Defense Advanced Research Agency (DARPA) to help satisfy DOD's requirements," said James DiLorenzo, president of Signal Technology and president and chief operating officer of the Company's Signal Wireless Group. "This contract award reflects the ability of Signal Technology and our strong team of partners to provide a total solution that leverages state-of-the-art technologies to meet these requirements. Together we deliver wide-ranging capabilities including systems architecture and design, receiver microelectronics expertise and ultra-miniaturized modular technology."
In view of the follow-on potential associated with the award announced today, Signal Technology has appointed David Laks to the newly created position of corporate vice president - homeland security program development. Prior to this assignment, Laks served as the Company's wireless group vice president and general manager. "In his new role, Dave will be working with agencies of the U.S. Government and with the Company's technology partners to ensure the success of the program, while also developing opportunities to deploy this groundbreaking sensor network technology in new applications," Lombard said. Before joining Signal Technology in 2001, Laks successfully executed a wide range of technical and program development responsibilities in defense electronics during his 18 years at Raytheon Company. "Given his extensive background, Dave is an excellent fit for this new position, and we are excited to have him lead our homeland security business team," said Lombard.
To provide additional management support in connection with the award announced today, Charles Stuewe has been named to the newly created position of program manager - homeland security programs. Formerly director of product management for Signal Technology's wireless group, Stuewe has more than 13 years of experience in technology development programs with extensive involvement in defense electronics program management, including positions at Texas Instruments Incorporated and Raytheon Systems Company. "We look forward to benefiting from Charlie's proven management skills in his new leadership role for this important development program," Lombard said. |
