Signal Technology Awarded Microelectronic Sensor Defense Contract With Homeland Security Applications
DANVERS, Mass.--(BUSINESS WIRE)--Oct. 31, 2002--
Company Awarded Second Microelectronic Sensor Network Contract in
30 Days; Both Contracts Now Total $8.2 Million with Follow-On
Potential of More Than $25 Million
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). The award represents the first phase of a program aimed at networking large numbers of low-cost, ultra-miniaturized electronic sensors, or "micro sensors," across a wide area to collect intelligence and surveillance data for military and homeland security purposes. This follows a similar $4.1 million defense and homeland security award announced by Signal Technology earlier this month.
Awarded to Signal Technology by the Defense MicroElectronics Activity (DMEA), the contract announced today represents the first phase of the program, which is expected to require about eight months to complete. As the prime contractor for this phase of the program, Signal Technology will coordinate with its team members and subcontractors to deliver a proof-of-concept demonstration of networked micro sensor technology. An 18-24 month second phase is expected to follow, consisting of advanced technology demonstration and validation and leading to a third phase culminating in low-rate initial production. The contract has been structured on a cost-plus, fixed-fee basis.
Under a teaming agreement signed in August, Signal Technology will function as prime contractor and lead a Micro Sensor Program development group that includes North Dakota State University, Fargo, N.D. (NDSU); Superconductor Technologies Inc. (Nasdaq:SCON), Santa Barbara, Calif. (STI); and the University of Alaska Fairbanks, Fairbanks, Alaska (UAF). Program management and network systems integration activities will take place at Signal Technology's Dallas, Texas engineering design center. The teaming agreement also covers future micro sensor development and related proposal activities.
"Receiving our second award from the DMEA as prime contractor for a key microelectronics program with defense and homeland security applications further validates our strategy, which is to penetrate this emerging segment of the military electronics market as a program manager and systems integrator," said Signal Technology Chairman and Chief Executive Officer George Lombard. "Our 20-year dedication to the defense electronics business has not only proven that we can consistently deliver outstanding technology, it has also demonstrated our ability to coordinate third-party alliances and DOD funding elements in order to successfully manage complex programs. We plan to further leverage this capability in order to secure continued DOD funding for this program and future programs."
"We look forward to working with our carefully selected team to demonstrate the practical deployment of highly cost-effective microelectronic sensor networks for the first time," said James DiLorenzo, president of Signal Technology and president and chief operating officer of the Company's Signal Wireless Group. "Our university partners, NDSU and UAF, are developing world leadership positions in nanoscale science and nanosensor technology research. The centers of excellence these institutions have created are translating this research into revolutionary new products and applications. Signal Technology is excited about the prospects for leveraging our relationships with these partners into additional business opportunities. Similarly, we will be working with STI to transform cutting-edge technology into innovative products for wireless surveillance networking." |
