Nov 10 2005
Ceradyne has announced the receipt of a $60.1 million delivery order for its lightweight ceramic body armor. This is the sixth 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 $292 million with approximately $169 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 expect to receive additional delivery orders against this ID/IQ contract throughout the remaining 21 months of this contract. We believe that the additional ceramic armor manufacturing capacity being 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 which, in turn, has resulted in our receipt of a somewhat higher rate of orders than we originally anticipated.
“Furthermore,” Moskowitz commented, “the August 2004 acquisition of the German technical ceramic and ceramic powder company, ESK, 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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