Ceradyne, Inc. Receives $47.8 Million Ceramic Body Armor Contract; Deliveries Scheduled from February 2006 thru April 2006
October 24 2005 - 7:30AM
Business Wire
Ceradyne, Inc. (Company) (Nasdaq:CRDN) announced the receipt of a
$47.8 million delivery order for its lightweight ceramic body
armor. This is the fifth delivery order received under the $461
million indefinite delivery/indefinite quantity (ID/IQ) contract
announced on August 20, 2004. Including this delivery order, orders
received under this contract total approximately $232 million with
approximately $229 million in unplaced options. The contract was
awarded to Ceradyne by the U.S. Army Unique Missions Division,
Aberdeen Proving Grounds, Maryland. Joel Moskowitz, Ceradyne chief
executive officer, commented: "We expect to receive additional
delivery orders against this ID/IQ contract later this year and
throughout the remaining 22 months of this contract. We believe
that the additional ceramic armor manufacturing capacity being
brought on stream in our new Lexington, Kentucky and Irvine,
California armor facilities have enabled us to meet our quality and
delivery projections to the government which, in turn, has resulted
in our receipt of a somewhat higher rate of orders than we
originally anticipated." "Furthermore," Moskowitz commented, "the
August 2004 acquisition of the German technical ceramic and ceramic
powder company, ESK, ensures a steady flow of the base ceramic
starting powder -- Boron Carbide." "Under an ID/IQ type contract,
the government is obligated to purchase only certain minimum
quantities," Moskowitz noted. "Each delivery order is issued as a
release against a maximum amount, which for this contract is $461
million. Therefore, our projections of follow-on business under
this contract anticipate receipt of additional delivery orders.
Ceradyne includes delivery orders as backlog only when there is a
firm delivery schedule." Moskowitz added: "Ceradyne is proud to
have been awarded this contract and is confident that the Ceradyne
armor systems that will be fielded in large quantities will help to
save American lives." Ceradyne develops, manufactures and markets
advanced technical ceramic products and components for defense,
industrial, automotive/diesel and commercial applications.
Additional information about the Company can be found at
www.ceradyne.com. Except for the historical information contained
herein, this news release contains forward-looking statements
regarding future events and the future performance of Ceradyne that
involve risks and uncertainties that could cause actual results to
differ materially from those projected. Words such as
"anticipates," "believes," "plans," "expects," "intends," "future,"
and similar expressions are intended to identify forward-looking
statements. Other risks and uncertainties are described in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2004, and its Quarterly Report on Form 10-Q for the
quarter ended June 30, 2005, as filed with the U.S. Securities and
Exchange Commission.
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