Jan 8 2013
TechPrecision Corporation (OTC Bulletin Board: TPCS) ("TechPrecision" or "the Company"), an industry leading manufacturer providing engineering, precision large-scale machined, fabricated metal and electrical components for complete tested systems with customers in the alternative energy, cleantech, medical, nuclear, defense, aerospace and other commercial industries, today announced that it has signed a five-year agreement valued at more than $115 million to exclusively produce complete product assemblies for Proton Beam cancer treatment equipment in the U.S. and Asia.
"This agreement reflects the culmination of years of work with our customer to develop, perfect, and certify an efficient manufacturing process to produce a revolutionary system that provides a significant reduction in the size, cost and complexity of operating a proton therapy center," said Mr. James Molinaro , CEO of TechPrecision Corporation. "This collaboration continues to be strategically beneficial to both organizations and now that the system has FDA clearance, pent-up demand indicates strong potential for this technology."
The Proton Beam technology was recently cleared by the FDA (Food and Drug Administration). This agreement covers exclusive production for units that will be used in the U.S. and Asia and supplied from the Company's Ranor and WCMC divisions. Under the terms of the agreement, the Company expects to begin shipping initial assemblies during Q1 FY2014 and continuing through Q4 FY2018. Individual purchase orders will be issued to TechPrecision for specific unit shipments within the terms of this agreement. These purchase orders will determine timing of shipments and revenue to TechPrecision, as well as minimum quantities for delivery. The Company has already successfully shipped five of these assemblies under a prior agreement.
"This agreement will benefit both our Ranor and WCMC divisions, as we will produce units to meet the market demand in the United States and Asia," continued Mr. Molinaro. "As this agreement goes forward, cancer patients are the big winners as it signals a new, more cost-effective and less-invasive procedure that is now an available option to the medical community. An additional benefit of this agreement is the further diversification of TechPrecision's revenue. Clearly, we are no longer reliant on the alternative energy sector, and medical shipments will become an increasingly important contributor to our top- and bottom-line results as this agreement transitions to purchase orders."
Source: http://www.techprecision.com/