IEC Electronics Corp (NASDAQ:IEC) announced Thursday that it has been awarded a Low Rate Initial Production multi-year contract valued at more than $15 million from a top global defense contractor.
In a statement, CEO Jeffrey Schlarbaum said the Newark, New York-based company is “energized” to have won the contract with a well-established aerospace and defense company.
“This is a brand new customer for us, who we have been pursuing for more than three years as part of our focused go-to-market strategy,” Schlarbaum said. “Considering the competitive landscape, it is gratifying that IEC‘s unique technical capabilities and unmatched dependability as a vertically integrated manufacturing partner for life-saving and mission-critical products is being recognized with this award.”
Schlarbaum said IEC expects “to realize modest revenue from the initial phase” of the contract during fiscal 2020, with revenue anticipated to increase as production ramps in fiscal 2021.
“The contract is part of a well-funded, high-priority long-term defense program integral to future national security interests,” he added. “Given the fact that this is a Low Rate Initial Production order which is expected to ramp to production volumes over time, we are optimistic IEC could see significant additional future revenue from this program.“
Founded in 1966, IEC, together with its subsidiaries, provides electronic manufacturing services to the defense, medical, industrial, and aerospace sectors in the US.
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