Ceradyne, Inc. Receives $77 Million XSAPI Body Armor Order
March 31 2009 - 7:30AM
Business Wire
Ceradyne, Inc. (NASDAQ:CRDN) announced that it has received a
delivery order for approximately $77 million for XSAPI ceramic body
armor plates. Ceradyne will begin shipping this XSAPI production
release in the second quarter of 2009 and expects to complete the
order in the fourth quarter of 2009. The release was issued under
the $2.37 billion five- year ID/IQ (Indefinite Delivery/Indefinite
Quantity) contract announced earlier in October 2008. The Company
also announced it has successfully completed all First Article
Testing and associated lot testing on its related ESAPI and XSAPI
designs.
This approximately $77 million initial XSAPI production order
replaces the $73 million XSAPI production order announced by
Ceradyne on October 9, 2008; that order was subsequently withdrawn
when a competitor protested the award.
As is Ceradyne�s policy, we book as orders only actual releases
with firm delivery dates. Therefore, this release of approximately
$77 million will become part of our backlog and not the $2.37
billion five-year ID/IQ contract.
David P. Reed, Ceradyne President North American Operations,
commented: �We are extremely pleased to have been awarded this
XSAPI contract. Although it was delayed, we intend to ship this
release in its entirety in calendar 2009. Our large installed
industrial base should allow us to provide the Army its XSAPI
requirements with on-time deliveries and high quality. We believe
that our track record on ESAPI and our vertically integrated
strategy; i.e., from powder to final product, has been instrumental
in our winning over 70% of the government�s needs.
�This new armor system was designed by Ceradyne�s extensive
ceramic, polymer and ballistic research team here in Costa Mesa and
Irvine, California. The XSAPI design is the most robust ballistic
protection available to our American fighting men and women. It not
only stops the most lethal �X� ballistic threats, but also defeats
other threats that the former ESAPI and SAPI systems were designed
to address as well.�
Reed further commented: �During the balance of 2009, our
engineers and senior staff will be working with the military to
more clearly define battlefield threats and deployment plans
through the year 2013.�
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
press 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.
These risks and uncertainties are described in the Company�s Annual
Report on Form 10-K for the fiscal year ended December 31, 2008,
and its Quarterly Reports on Form 10-Q, as filed with the U.S.
Securities and Exchange Commission.
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