> ALEXANDRIA, Va. -- Microdyne Corporation (Nasdaq:MCDY) announced today that its Aerospace Telemetry Division (ATD) successfully completed acceptance testing of the Lock-On/Sky Screen Systems Integration contract received from the Italian Ministry of Defense. The contract, awarded to the division in December, 1996, and with a value in excess of $11 million, was issued to Microdyne by the Italian government to upgrade their capability for the testing of defense systems. The final phase of the installation and training for the new system will occur after shipment of the equipment to the island of Sardinia.
The company also reported that with completion of the acceptance testing it had received a progress payment from the Italian government of $6.2 million on January 21st. The remaining balance of approximately $3 million is expected to be received prior to March 31, 1998, the end of the company's second fiscal quarter. Commenting on the progress payment, Max Safavi, Microdyne's Chief Financial Officer, said, "As we have previously indicated, this payment significantly reduces our accounts receivable, which were $20.3 million as of December 31, 1997. At the same time, these funds have been applied to our bank facility which was at $8.2 million at the end of December. This is another step in our strategy to strengthen Microdyne's balance sheet."
Microdyne Corporation, headquartered in Alexandria, Virginia, is a full- time provider of value-added, outsourced technical support and repair services for electronic products companies, and the premier global developer and manufacturer of aerospace telemetry receivers for use in data gathering and analysis.
The information in this release contains forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially include: the effect on cash flow and liquidity of differences between the expected and the actual timing of collection of accounts receivable, and the Company's relationships with sources of external financing.
Microdyne's shares are traded on the Nasdaq Stock Market: symbol MCDY |
