Ceradyne, Inc. Receives $42.8 Million Ceramic Body Armor Contract; Deliveries Scheduled From August 2006 thru October 2006
February 27 2006 - 12:42PM
Business Wire
Ceradyne, Inc. (Company) (Nasdaq:CRDN) announced the receipt of a
$42.8 million delivery order for its lightweight ceramic body
armor. This is the eighth 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 $335 million, with
approximately $126 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 believe that the additional
ceramic armor manufacturing capacity which has been brought on
stream in our new Lexington, Kentucky and Irvine, California armor
facilities has enabled us to meet our quality and delivery
projections to the government. "Furthermore," Moskowitz commented,
"the August 2004 acquisition of the German technical ceramic and
ceramic powder company, ESK Ceramics, 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, as filed with the Securities and Exchange
Commission.
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