OTTAWA, Dec. 10 /CNW Telbec/ - Allen-Vanguard Corporation ("Allen-Vanguard" or the "Company") (TSX:VRS) commented today on the U.S. Department of Defense (DoD) announcement of December 7, 2007 awarding CREW3 development contracts for electronic counter measures systems ("ECM" or "jammers") to Northrop Grumman, ITT and Sierra Nevada Corp.
"We are still obtaining follow-on information from our two U.S. partners, both of whom bid our technology into the CREW3 development program but were not included in these CREW3 announcements," said David E. Luxton, President and CEO of Allen-Vanguard. To the best of the Company's knowledge no further award announcements are expected.
"We note that no major current incumbent in U.S. DoD jammer programs was included in these CREW3 development awards," said Mr. Luxton. Through divisions of Lockheed Martin and General Dynamics, Allen-Vanguard is the incumbent in two major jammer programs in the U.S. The Company's jammers have also been procured for Homeland Security applications in the U.S. "The existing industry base of battle proven jammer technology like ours is very limited, so it is understandable that DoD might invest to see if the technology base can be expanded beyond current program incumbents," added Mr. Luxton.
CREW3 is a development program through fiscal 2008 and 2009, with no follow-on commitment to further work or production. As a result, it is impossible for the Company to predict whether the CREW3 program might result in an eventual migration to entirely new equipment and support systems, or whether, instead, ongoing upgrades and advanced new versions of equipment currently in service will meet the same objective.
"What we do know is that we've been here before," said David Luxton. Allen-Vanguard was not selected for the earlier CREW2 program, but nevertheless went on to capture major U.S. military programs on merit. "That kind of success, in the U.S. and internationally, derives from our technology design strategy, which has long anticipated the evolving requirements of users," added Mr. Luxton. "We therefore expect to field very advanced next-generation jammer technology with CREW3 level capability well in advance of the CREW3 program timetable. As before, we expect this will be attractive to customers on its merits."
The Company stated that it is also pursuing Homeland Security opportunities in the U.S. and major program opportunities overseas, leveraging its global reach and strengthening its partnerships. Jammers are one part of a core counter-IED mission capability that also includes robots and bomb suit helmets, all incorporating radio frequency systems that must be interoperable. "We are uniquely able to provide this kind of interoperable suite, and we remain confident that customers will find our offerings compelling," concluded Mr. Luxton.
The Company expects little impact from the CREW3 announcement on its revenue and EBITDA for fiscal 2008, previously projected at approximately $500 million and $160 million respectively. The Company said it would comment further should it acquire follow-on information about the CREW3 program, and as well in conjunction with the release of its financial results for fiscal 2007, scheduled for December 17, 2007.
About Allen-Vanguard
Allen-Vanguard Corporation supports the mission of military and homeland security forces around the world with leading proprietary solutions for protection and counter-measures against hazardous devices of all kinds, whether chemical, biological, radiological or explosive (CBRNE), including improvised explosive devices (IEDs) and remotely controlled IEDs (RCIEDs). Allen-Vanguard equipment is in service in more than 120 countries. Products include Electronic Counter-Measures ("ECM") equipment for jamming remote detonation of terrorist devices, specialty security equipment for Explosive Ordnance Disposal ("EOD"), remote intervention robots for hazardous applications, and personal protective wear for use in dealing with explosive and bio-chemical agents. Allen-Vanguard is the developer and/or sole, worldwide licensee of proprietary technologies such as the Med-Eng bomb suit, the Defender(TM) and Vanguard(TM) Mk2 bomb disposal robots, and the Universal Containment System and CASCAD Foam system for blast mitigation and decontamination of bio-chemical warfare agents. Professional services encompass counter-IED intelligence, training and advisory services, including the Triton(TM) Report on terrorist incidents around the world. The Company operates globally through its wholly-owned subsidiaries under the names "Allen-Vanguard", "Med-Eng" and "Hazard Management Solutions". Head office operations are located in Ottawa, Ontario, Canada, with manufacturing operations in Stoney Creek and Pembroke, Ontario; Ogdensburg, New York; Tewkesbury, U.K.; and Cork, Ireland; The Company has professional services operations in Shrivenham, UK, Canada and in the U.S. in Arlington, Virginia, plus sales offices in Canada, the U.S., the U.K. and Asia. Allen-Vanguard's shares are listed on The Toronto Stock Exchange (TSX) under the symbol "VRS".
This press release may contain forward-looking statements, which reflect Allen-Vanguard's current expectations regarding future events, its strategy, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "plans," "believes," "estimates" or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future acquisitions or dispositions, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company and economic factors. Forward-looking statements are not promises or guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made about the Company. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above-mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decision and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware that the Company disclaims any obligation to publicly update or revise any such forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Discussion and Analysis to be released by the Company or except as required by law.
To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our website at www.allen-vanguard.com.
%SEDAR: 00018026E