Business
Allen-Vanguard announces $3.1 million ECM order
Allen-Vanguard announces $3.1 million ECM order.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\nVanguard robot production outsourced\n\nOTTAWA, Jan. 30 /CNW Telbec/ - Allen-Vanguard Corporation (the \"Company\"\nor \"Allen-Vanguard\") (TSX:VRS) of Ottawa, Canada today announced an additional\norder worth $3.1 million for its Electronic Counter Measures (ECM) equipment.\nAll amounts are in Canadian dollars.\nThe $3.1 million ECM order being announced today represents a\ncontinuation of the brisk pace of sales of this core product line, and was\nfrom the same overseas customer who placed a similar-sized order ten days ago,\nas announced on January 20th. ECM orders for the past 90 days now total more\nthan $15 million, with most of this received in the past 30 days. This\ncompares to sales of $2 million for ECM products for all of fiscal 2005.\nAllen-Vanguard also announced that it was outsourcing the production of\nthe Vanguard MkII robot.\n\"Effective immediately, we will outsource manufacturing of the Vanguard\nMkII robot to an Ottawa contractor,\" said David Luxton, interim Chairman and\nCEO. \"This will have the impact of reducing the overheads in our Ottawa\noperations, as well as lowering the production costs for the MkII robot. We\nare also pleased that the work will remain in Ottawa.\"\nThe Company said it expects to see implementation of today's outsourcing\ndecision as well as planned reductions to corporate overhead completed before\nthe end of March, 2006. Anticipated annual savings are in the range of\n$2.5 million. All associated restructuring charges have already been accounted\nfor as at September 30, 2005.\nAs part of the ongoing strategic review process announced recently, the\nCompany also decided that it would seek a buyer for its product line of\nvehicle bomb barriers. \"Although the sales performance of these products has\nrecently been good the target growth profile and customer base for these\nproducts do not fit with the rest of our product lines,\" said David Luxton.\n\nAbout Allen-Vanguard\n\nAllen-Vanguard Corporation and its subsidiaries worldwide operate under\nthe brand \"Allen-Vanguard\". The Company develops and markets technologies,\ntools and training for defeating and minimizing the effects of hazardous\ndevices and materials, whether Chemical, Biological, Radiological, Nuclear or\nExplosive (CBRNE). The Company's equipment is in service with leading security\nand military forces...