Allen-Vanguard eyes possible $300-million jammer sales
Allen-Vanguard Corp (C-VRS) - News Release
2008-09-25 17:20 ET - News Release
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VRS Close 2008-09-24 C$ 0.295
Mr. David Luxton reports
ALLEN-VANGUARD SIGNS THREE-YEAR REQUIREMENTS CONTRACT WITH LOCKHEED MARTIN FOR UP TO 7,500 ELECTRONIC COUNTER-MEASURES ("ECM") SYSTEMS
Allen-Vanguard Corp. has signed a requirements contract with Lockheed Martin for up to 7,500 Symphony ECM ("jammer") component systems over three years, plus associated spares and accessories. The company also today received an initial order under the requirements contract for approximately $7-million of Symphony component systems, and expects to deliver this order in the first quarter of fiscal 2009, which commences Oct. 1, 2008.
The requirements contract signed today is in reference to the U.S. Department of Defense presolicitation notice of Jan. 31, 2008, for a sole-source indefinite delivery/indefinite quantity (IDIQ) contract to Lockheed Martin for up to 2,500 Symphony jammers per year for three years.
Allen-Vanguard is the licensor and exclusive supplier of proprietary jammer component technology under a seven-year technology license and supply agreement (TLSA) signed with the maritime systems and sensors division of Lockheed Martin in December, 2005.
Under the requirements contract signed today, Lockheed Martin has the right to exercise orders up to a maximum quantity of 2,500 units in any calendar year during the effective period, which commences Sept. 23, 2008, and terminates Dec. 31, 2011. Should the maximum annual quantities be procured the estimated value to Allen Vanguard over the three-year term of the contract would be in the range of $240-million to $300-million, depending on the quantity of spares and accessories.
As stated in the company's previous Symphony order announcement of Aug. 5, 2008, Symphony system requirements by foreign governments are expected to be processed under the U.S. foreign military sales (FMS) process. As a result, Allen-Vanguard expects that Symphony component system orders from Lockheed Martin may be placed in varying quantities at irregular intervals.
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