US $3.5 Million ATP is First Phase of Larger Contract Negotiation
CAMBRIDGE, ON, June 11 /CNW/ – COM DEV International Ltd. today
announced it has been awarded a US $3.5 million (approximately CDN
$4.7 million) authority to proceed (ATP) against an anticipated military
satellite contract that is expected to be formalized in the next few months.
The total value of the contract, for which final terms are still being
negotiated and which is subject to final program funding decisions, could be
worth up to US $26 million (approximately CDN $35 million). ATPs are
frequently used in the satellite industry to permit subcontractors to commence
work ahead of the contract signing, when the contract details are complex but
the program is subject to a tight schedule.
Products to be delivered comprise mostly standard COM DEV products built
to operate at military frequencies. The contract work will be carried out at
COM DEV’s facilities in Cambridge, Ontario and Aylesbury in the UK and will be
delivered over 36 months. Details will be provided following the contract
signing and customer approval of the announcement expected sometime in the
next three months.
Commenting on this award, COM DEV’s CEO, John Keating said, “This
Authority to Proceed represents important progress in our strategy of the past
three years to diversify beyond our traditional success in commercial
satellite markets.”
About COM DEV
COM DEV International Ltd. (www.comdev.ca) based in Cambridge, Ontario,
is the largest Canadian-based designer and manufacturer of space hardware
subsystems.
COM DEV, with facilities in Canada and the United Kingdom, manufactures
advanced products and subsystems that are sold to major satellite prime
contractors for use in communications, space science, remote sensing and
military satellites.
COM DEV and COM DEV Space are registered trademarks of COM DEV
International Ltd. This news release may contain certain forward-looking
statements that involve risks and uncertainties. Actual results may differ
materially from results indicated in any forward-looking statements. The
company cautions that, among other things, in view of the rapid changes in
communications markets and technologies, and other risks including the cost
and market acceptance of the company’s new products, the level of individual
customer procurements and competitive product offerings and pricing, and
general economic circumstances, the company’s business prospects may be
materially different from forward-looking statements made by the company.
For further information
Media Contact: Ron Holdway, Senior Director,
Media Relations, Tel: (613) 295-5607, Fax: (613) 569-5691,
investor.relations@comdev.ca
Analyst Contact: Gary Calhoun, Chief
Financial Officer, Tel: (519) 622-2300 ext. 2826, Fax: (519) 622-2158,
gary.calhoun@comdev.ca
