Arotech's FAAC Incorporated Receives $63.4 Million Order for U.S. Army Virtual Clearance Training Suites -- With Options, Up to $94 Million. It has shown sharp up move of 54 %during yesterday's trading session. Volumes are quite stronger and there is no sign of profit booking traders might look for next trading session to trade the stock.
Arotech's Backlog Surpasses $100 Million for First Time Ever
ANN ARBOR, MI--(Marketwire - May 9, 2011) - FAAC Incorporated, part of Arotech Corporation's (NASDAQ:ARTX) Training and Simulation Division, has received a $63.4 million contract award for the design, development, production, and delivery of 28 Virtual Clearance Training Suites (VCTS). VCTS simulates the wide array of large and small technical devices, purpose-built mine-protected detection and clearing vehicles, and ever-evolving tactics and techniques used by the U.S. Army to combat improvised explosive devices.
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This award, from the U.S. Army Program Executive Office for Simulation, Training & Instrumentation (PEO STRI),
is a competitive small-business delivery order under the STRI Omnibus Contract known as STOC II. This base order for 28 systems is to be delivered incrementally over a 36-month period. Including all priced options this award is valued at up to $93.9 million.
is a competitive small-business delivery order under the STRI Omnibus Contract known as STOC II. This base order for 28 systems is to be delivered incrementally over a 36-month period. Including all priced options this award is valued at up to $93.9 million.
"The Virtual Route Clearance Training Suite provides a simulation-based solution to train Route Clearance Teams in coordinated operation for the set of Route Clearance equipment," said Kurt Flosky, FAAC Executive Vice President. "Our VCTS solution provides the Right Fidelity solution to satisfy the Army's urgent and long term need for training in an IED environment."
"This is a great win for FAAC and validates Arotech's commitment to the training and simulation market," noted Robert Ehrlich, Arotech's CEO. "We are proud that our training solutions are able to play a role in preparing our nation's Warfighters for their important mission," concluded Ehrlich.
Inclusive of this order, but not including the priced options, Arotech's backlog stands at a record $105 million.
Arotech also noted that due primarily to delays in shipments of orders in its Armor Division to the Israeli Army, revenues (which Arotech records as orders are shipped) in the first quarter 2011 will be down approximately 37% from the corresponding period last year. However, since these armor orders are anticipated to be shipped later this year, Arotech continues to expect its full year's revenues to be comparable to those of 2010, without taking account of any impact the new Simulation Division order may have on Arotech's results during 2011, which management is currently evaluating.
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