Micron Solutions, Inc. Announces Multi-Year Exclusive Manufacturing Agreement with its Largest Customer
February 27 2018 - 12:21PM
Micron Solutions, Inc. (the “Company”) (NYSE American:MICR) is
pleased to announce that its wholly owned subsidiary Micron
Products, Inc. (“Micron”) with offices in Fitchburg, MA has entered
into a multi-year agreement with its largest customer (“Customer”)
to supply a variety of their patented components and assemblies
which are fabricated by Micron.
Under this agreement, Micron is the exclusive manufacturer of a
variety of injection molded products which are sold by the Customer
worldwide. The supply and manufacturing agreement sets forth the
general terms and conditions, including product quality, product
changes, deliveries and pricing pursuant to which Micron will
exclusively manufacture and sell required product and tooling to
its Customer against purchase orders. The agreement provides
for initial order quantities, volume-based pricing and rebates as
well as rolling forecasts. Micron has received purchase
orders for $3.4 million for the first year of production with the
expectation that shipments will be at least $3.0 million to $4.0
million for subsequent years of the multi-year agreement. The
Company expects production under the agreement to commence in the
first quarter of 2018.
“After more than 5 years of close collaboration, we are pleased
to be a part of our Customer’s success in developing and selling
these components. Micron has developed a number of highly
automated and accurate manufacturing cells which can produce
millions of parts per day,” commented Salvatore Emma, Micron’s
President and CEO. “Micron and its Customer share in the
automation investment to keep costs competitive while improving
quality and delivery reliability.”
About Micron Solutions Inc.Micron Solutions
Inc., through its wholly-owned subsidiary, Micron Products, Inc.
(collectively, the “Company”), is a diversified contract
manufacturing organization that produces highly-engineered,
innovative medical device components requiring precision machining
and injection molding. The Company also manufactures
components, devices and equipment for military, law enforcement,
industrial and automotive applications. In addition, the
Company is a market leader in the production and sale of
silver/silver chloride coated and conductive resin sensors used as
consumable component parts in the manufacture of integrated
disposable electrophysiological sensors. The Company’s
strategy for growth is to build a best-in-class contract
manufacturer with a specialized focus on plastic injection molding
and highly-engineered medical devices and components requiring
precision machining.
The Company routinely posts news and other important information
on its websites:http://www.micronsolutionsinc.com and
http://www.micronproducts.com
Safe Harbor StatementForward-looking statements
made herein are based on current expectations of Micron Solutions,
Inc. (“our” or the “Company”) that involve a number of risks and
uncertainties and should not be considered as guarantees of future
performance. The factors that could cause actual results to differ
materially include our ability to obtain and retain order volumes
from customers who represent significant proportions of net sales;
our ability to maintain our pricing model, offset higher costs with
price increases and/or decrease our cost of sales; variability of
customer delivery requirements; the level of and ability to
generate sales of higher margin products and services; our ability
to manage our level of debt and provisions in the debt agreements
which could make the Company sensitive to the effects of economic
downturns and limit our ability to react to changes in the economy
or our industry; failure to comply with financial and other
covenants in our credit facility; reliance on revenues from exports
and impact on financial results due to economic uncertainty or
downturns in foreign markets; volatility in commodity and energy
prices and our ability to offset higher costs with price increases;
continued availability of supplies or materials used in
manufacturing at competitive prices; variations in the mix of
products sold; continued availability of supplies or materials used
in manufacturing at competitive prices; and the amount and timing
of investments in capital equipment, sales and marketing,
engineering and information technology resources. More
information about factors that potentially could affect the
Company's financial results is included in the Company's Annual
Report on Form 10-K and other filings with the Securities and
Exchange Commission.
For more information,
contact:
Derek T.
Welch
Chief Financial Officer
978.345.5000