Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Paul M. who wrote (63672)	3/23/1999 6:56:00 AM
From: Paul M.	Respond to of 119973

Pen Interconnect Signs $10 Million Manufacturing Agreement With Imaging Technologies Corporation Relationship Represents the Largest Agreement in the History of the Company Pen Interconnect Has Announced $15 Million in New Outsource Agreements Over The Past Month IRVINE, Calif., March 23 /PRNewswire/ -- Pen Interconnect, Inc. (Nasdaq: PENC - news) announced today that its wholly-owned subsidiary, InCirT Technology, has signed an annual manufacturing and outsource agreement with Imaging Technologies Corporation (Nasdaq: ITEC - news), a pioneer in the development of digital imaging solutions based in San Diego, California. The relationship is one whereby Pen will assume all of the manufacturing and fulfillment services for ITEC. This agreement contemplates $10 million in annual revenues to PEN and work under the relationship is scheduled to begin immediately. Under the terms of the contract, PEN will provide a complete turnkey out source manufacturing services and logistics support program for Imaging Technologies' color printer controller boards and printer systems. This will allow for ITEC to maintain high volume manufacturing, test, packing and shipping capabilities thereby expanding their business without the cost of setting up their own manufacturing facility. This agreement brings the total amount of new outsource agreements announced by PEN in the month of March to more than $15 million. PEN recently announced a $4 million contract award for circuit board assembly and yesterday announced new contracts totaling more than $1 million for the design and manufacturing of proprietary power products at its PowerStream division. Commenting on the announcement, Steve Fryer, CEO of Pen Interconnect, stated, ''This relationship is the largest outsource agreement in the history of PEN and is a milestone for our InCirT Technology manufacturing division. The ITEC agreement will enable InCirT Technology to significantly increase its capacity utilization at its newly expanded facility in Irvine, and consequently, move PEN into a much stronger cashflow position as we move back toward profitability. Our recent success is a result of our previously announced intent to emphasize our core divisions after selling our unprofitable non-core operations. Additionally, industry trends continue to be very favorable for outcource contract manufacturing. PEN currently has in excess of $30 million in outstanding bids and expects to be able to announce more contract activity in the near future. These recent agreements increase our current annual revenue run-rate to more than $26 million.'' ''The resources of Pen Interconnect will allow ITEC to promptly fulfill a backlog of orders for our newest generation of printers and digital imaging products,'' said Brian Bonar, Chief Executive Officer of Imaging Technologies. ''Pen Interconnect provides us with a wealth of both technical and manufacturing capabilities. Partnering with them allows us to expand our product mix, focusing our efforts on technology, without having to deal with day to day manufacturing or fulfillment issues. Our goal is to solidify our position in the industry by concentrating on our areas of greatest strength.''