- Estimated value $240-$300 million assuming maximum quantities
- Initial order for $7 million
OTTAWA, Sept. 25 /CNW Telbec/ - Allen-Vanguard Corporation (TSX: VRS) ("Allen-Vanguard" or the "Company") of Ottawa, Canada today announced that it has signed a Requirements Contract with Lockheed Martin for up to 7,500 Symphony ECM (or "jammer") component systems over three years, plus associated spares and accessories. The Company also today received an initial order under the Requirements Contract for approximately $7 million of Symphony component systems, and expects to deliver this order in the first quarter of fiscal 2009, which commences October 1, 2008. All amounts are in Canadian dollars unless otherwise specified.
The Requirements Contract signed today is in reference to the U.S. Department of Defense pre-solicitation notice of January 31, 2008, for a sole-source Indefinite Delivery/Indefinite Quantity (IDIQ) contract to Lockheed Martin for up to 2,500 Symphony jammers per year for three years.
Allen-Vanguard is the licensor and exclusive supplier of proprietary jammer component technology under a seven year Technology License and Supply Agreement (TLSA) signed with the Maritime Systems and Sensors division of Lockheed Martin in December, 2005.
Under the Requirements Contract signed today, Lockheed Martin has the right to exercise orders up to a maximum quantity of 2,500 units in any calendar year during the effective period, which commences September 23, 2008, and terminates December 31, 2011. Should the maximum annual quantities be procured the estimated value to Allen Vanguard over the three-year term of the contract would be in the range of $240-$300 million, depending on the quantity of spares and accessories.
As stated in the Company's previous Symphony order announcement of August 5, 2008, Symphony system requirements by foreign governments are expected to be processed under the U.S. Foreign Military Sales (FMS) process. As a result, Allen-Vanguard expects that Symphony component system orders from Lockheed Martin may be placed in varying quantities at irregular intervals.
Allen Vanguard
Forward looking statements
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.
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 DefenderTM and VanguardTM 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 TritonTM 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".
To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our website at www.allenvanguard.com.
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