CAMBRIDGE, ON, Jan. 21, 2016 /CNW/ - COM DEV International Ltd. (TSX:CDV), a leading manufacturer of space hardware subsystems, today announced that it has signed a Strategic Supply Agreement making the company the exclusive supplier of satellite switches for a key customer over the next three years. This is the second long-term agreement COM DEV has reached with a major satellite prime contractor since the start of the company's fiscal year in November 2015, and the third overall.
The supply agreement uses a catalogue procurement approach to introduce a level of standardization and scale to the space manufacturing process which has typically operated on a custom engineering basis. The agreement establishes technical specifications, performance standards and pricing for a range of COM DEV's switch products, allowing the customer to place orders efficiently once a satellite has been awarded.
"Our customers are increasingly embracing the catalogue approach. They recognize that it secures a key element of their supply chain for major satellite programs, while at the same time streamlining processes and reducing costs for both parties," said Mike Williams, president of COM DEV's products division. "We are well positioned to offer them this option due to our high volume production capabilities and the industry-leading innovations we have introduced in a new generation of switch products."
COM DEV anticipates that the lifetime value of the contract will be up to $10 million (CAD), contingent on the number of satellites its customer is awarded over the next three years.
About COM DEV
COM DEV International Ltd. (www.comdev.ca) is a leading global provider of space hardware and services. The Company has a staff of more than 1,250, annual revenues of over $200 million, and facilities in Canada, the United Kingdom, the United States, India and China. COM DEV designs, manufactures and integrates advanced products, subsystems and microsatellites that are sold to major satellite prime contractors, government agencies and satellite operators, for use in communications, space science, remote sensing and defence applications. The Company has won contracts to supply its equipment on over 950 spacecraft. COM DEV's majority-owned subsidiary, exactEarth Ltd., provides satellite data services for global maritime surveillance.
This news release may contain certain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The Company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the Company's new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the Company's business prospects may be materially different from forward-looking statements made by the Company.
The triangular logo and the word COM DEV are each registered trademarks and the property of COM DEV Ltd. All rights reserved.
SOURCE Com Dev International Ltd.
For further information: Gary Calhoun, Chief Financial Officer, Tel: (519) 622-2300 ext. 2826, [email protected]; Jeff Codispodi, Director, Investor Relations & Communications, Tel: (519) 622-2300 ext. 2844, [email protected]