Business
Allen Vanguard announces $10 million in contract awards for Explosive Ordnance Disposal (EOD) equipment
Company provides update on market conditions, reminds investors of Shareholder Meeting today at 2...
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\nCompany provides update on market conditions, reminds investors of\nShareholder Meeting today at 2pm\n\n\nOTTAWA, March 16 /CNW Telbec/ - Allen-Vanguard Corporation (the "Company"\nor "Allen-Vanguard") (TSX: VRS) of Ottawa, Canada today announced that it\nreceived $10 million in contract awards for EOD equipment in the past week,\nincluding $6 million from the U.S. Department of Defense (DoD) for Iraq and $4\nmillion from Brazil and Eastern European customers. All amounts are in\nCanadian dollars at prevailing exchange rate.\n\n\n"We are seeing a pronounced increase in activity for EOD equipment\nrequirements, driven by a combination of heightened IED threats in many\ncountries and by equipment attrition in theatres of conflict and stockpiling\nof leave-behind equipment as U.S. troops draw down in Iraq," said David E.\nLuxton, President and CEO. "We are also seeing a significant increase in\ndemand for integrated packages of our equipment, reflecting the kind of\nsynergy we expected from our acquisitions."\n\n\nThe Company also provided an update on backlog and market conditions, and\nreminded investors of the Special and Annual General Meeting of Shareholders\ntoday at 2pm in Ottawa.\n\n\n"We are pleased at the general increase in market activity for our\nproducts and services, and that our sales pipeline has increased and our\nbacklog remains strong at approximately $100 million," said Mr. Luxton. "At\nthe same time we are acutely attuned to operating risks in this extraordinary\nenvironment. We are monitoring market conditions very closely to be able to\nadjust to evolving developments, both downside and upside. Very recently we\nhave seen some downside in the U.S. military jammer market, with DoD clearly\nfavoring large, established domestic suppliers, which is causing us to\nre-evaluate our strategy there regarding Chameleon jammers. At the same time,\nforeign requirements for Symphony jammers for foreign Partner and Coalition\nforces are increasing, with upside that can offset the downside to Chameleon\nprovided that order flow is timely."\n\n\nThe Company noted that explicit buy-America provisions have appeared in\nprocurement solicitations at the state and local level in some industries, as\nhas been widely reported in the media. Allen-Vanguard mitigates...