Ceradyne, Inc. Receives New Multi-Year ESAPI Contract With an Initial Delivery Order of $127 Million
September 26 2011 - 1:00PM
Marketwired
Ceradyne, Inc. (NASDAQ: CRDN) announced that it has received a new
three-year ID/IQ (Indefinite Delivery/Indefinite Quantity) contract
for ESAPI (Enhanced Small Armor Protective Inserts) ceramic armor
plates from the contracting activity, The Defense Logistics Agency
Group Support, Philadelphia, PA. The using services include the
United States Army, Navy, Air Force and Marine Corps.
Simultaneously, with this award an initial delivery order for
approximately $127 million was issued for delivery in 2012,
complete by March 31, 2013.
Ceradyne's practice with all ID/IQ contracts is to record as
backlog only the portion of the award which has firm delivery
orders issued against the total contract. In this particular case,
Ceradyne will only book Delivery Order 0001 for $127 million.
David P. Reed, Ceradyne President North American Operations,
commented: "We are extremely pleased to receive this multi-year
ESAPI award and its initial delivery order. We believe that this
contract was, at least in part, awarded to Ceradyne based on our
technology, in-place production capacity, past performance and our
vertical integration strategy."
Reed continued: "Our ability to produce the starting ceramic
powders, hot press the high-quality ceramic plates and finally
assemble the armor system has a long track record of success and
should serve Ceradyne and particularly our fighting men and women
well as we go forward."
Joel P. Moskowitz, Ceradyne CEO, added: "This is a very
important strategic win for our company. The absolute size and
multi-year nature of the award lays the groundwork for the defense
portion of the previously announced 5 year 'Ceradyne $1 Billion'
strategy."
About Ceradyne, Inc. Ceradyne develops, manufactures, and
markets advanced technical ceramic products and components for
defense, industrial, energy, automotive/diesel, and commercial
applications. In many high performance applications, products made
of advanced technical ceramics meet specifications that similar
products made of metals, plastics or traditional ceramics cannot
achieve. Advanced technical ceramics can withstand extremely high
temperatures, combine hardness with light weight, are highly
resistant to corrosion and wear, and often have excellent
electrical capabilities, special electronic properties and low
friction characteristics. Additional information about the Company
can be found at http://www.ceradyne.com.
Forward-Looking Statements 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, 2010 and its Quarterly Reports on
Form 10-Q as filed with the U.S. Securities and Exchange
Commission.
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