New Contract Win With US Based Aerospace and Defence Company, Notice of Results and Investor Presentation
Concurrent Technologies Plc
(the “Company” or the “Group”)
New Contract Win With US Based Aerospace and Defence Company,
Notice of Results and Investor Presentation
Concurrent Technologies Plc (AIM: CNC), a designer and manufacturer of leading-edge computer products, systems and mission critical solutions used in high-performance markets by some of the world’s major OEMs, has secured a $1.57M contract with a major global US Prime Contractor (the “Contractor”), to supply Commercial-Off-The-Shelf (COTS) products and testing services as part of the Contractor’s technology upgrade program.
This contract follows a prior $0.32M purchase order placed for the initial design engineering required to scope this work, delivering a total programme value to date of $1.9M.
A significant proportion of the programme value relates to the Company’s products undergoing proof of concept work and rigorous testing by the Contractor to demonstrate the integration capability into its platform. Provision of such value-add services is an element of the Company’s strategy to be a provider of systems and systems integration services to the sector. The Company routinely sells COTS products into the defence market where thorough testing and product proving is required to qualify subsystems, which represents a new capability and revenue stream for the Company.
This product includes some uniquely configured assemblies and minor customer specific modifications, such that the Group classifies the deliverables as Mostly-Off-The-Shelf (MOTS) rather than COTS. This approach is an important aspect of the Company strategy for future growth.
In addition, the contract includes the delivery of five computer board assemblies, with the expectation of commercial scale volumes being purchased by the Contractor in due course.
The product is designed to replace existing end-of-life equipment from an incumbent supplier on an aircraft as part of that aircraft’s current upgrade programme, providing the customer and end user with a substantial technology upgrade.
This contract win further validates the Company’s strategy to supplement the delivery of standard products with a more tailored offering individual customers; an essential capability for the provision of more complex systems particularly into the defence market, which now accounts for 85% of the Group’s revenue.