Ceradyne, Inc. Receives $42.8 Million Ceramic Body Armor Contract(COSTA MESA, Calif., Feb. 27, 2006) -- Ceradyne, Inc. (Company) (Nasdaq:CRDN) announced the receipt of a $42.8 million delivery order for its lightweight ceramic body armor. This is the eighth delivery order received under the $461 million indefinite delivery/indefinite quantity (ID/IQ) contract announced on August 20, 2004. Including this delivery order, orders received under this contract total approximately $335 million, with approximately $126 million in unplaced options. The contract was awarded to Ceradyne by the U.S. Army Unique Missions Division, Aberdeen Proving Grounds, Maryland.
Joel Moskowitz, Ceradyne chief executive officer, commented, "We believe that the additional ceramic armor manufacturing capacity which has been brought on stream in our new Lexington, Kentucky and Irvine, California armor facilities has enabled us to meet our quality and delivery projections to the government.
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"Furthermore," Moskowitz commented, "the August 2004 acquisition of the German technical ceramic and ceramic powder company, ESK Ceramics, ensures a steady flow of the base ceramic starting powder -- Boron Carbide.
"Under an ID/IQ type contract, the government is obligated to purchase only certain minimum quantities," Moskowitz noted. "Each delivery order is issued as a release against a maximum amount, which for this contract is $461 million. Therefore, our projections of follow-on business under this contract anticipate receipt of additional delivery orders. Ceradyne includes delivery orders as backlog only when there is a firm delivery schedule."
Moskowitz added: "Ceradyne is proud to have been awarded this contract and is confident that the Ceradyne armor systems that will be fielded in large quantities will help to save American lives."
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Source : Ceradyne, Inc.