Bringing truly transformational, hi-tech products (eg autonomous driving) to market often takes years from initial R&D, fine-tuning & prototyping, right through to extensive field-trials and ‘proof-of-concept’. Only then to fail at either final customer sign-off or regulatory approval. Not so Kromek. Saying today that it had been awarded a 7 year $17m contract with a large US OEM to supply next generation CZT detectors to identify contaminants within production processes for quality inspection purposes. The order relates to a $660k development agreement, which was announced on 2nd November 2020. We think this is a significant achievement on numerous fronts. Not least because it’s a marvellous endorsement & statement of intent from another leading corporation. Alongside materially increasing Kromek’s orderbook and derisking our conservative forecasts, whilst equally enabling the firm to generate long term, high margin revenues across the lifetime of this platform. CEO Arnab Basu, adding: “We are delighted at the success of our collaboration with our OEM customer, who has substantial global operations and market share in this sector. Our customer is dedicated to introduce best-of-breed solutions in their next-generation products to ensure we can live healthier and safer lives. We anticipate developing further products for this customer to support their ambitions.”
26 Oct 2021
$17m contract win with major US based OEM
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$17m contract win with major US based OEM
Kromek Group Plc (KMK:LON) | 7.2 0 4.4% | Mkt Cap: 45.8m
- Published:
26 Oct 2021 -
Author:
Paul Hill -
Pages:
4
Bringing truly transformational, hi-tech products (eg autonomous driving) to market often takes years from initial R&D, fine-tuning & prototyping, right through to extensive field-trials and ‘proof-of-concept’. Only then to fail at either final customer sign-off or regulatory approval. Not so Kromek. Saying today that it had been awarded a 7 year $17m contract with a large US OEM to supply next generation CZT detectors to identify contaminants within production processes for quality inspection purposes. The order relates to a $660k development agreement, which was announced on 2nd November 2020. We think this is a significant achievement on numerous fronts. Not least because it’s a marvellous endorsement & statement of intent from another leading corporation. Alongside materially increasing Kromek’s orderbook and derisking our conservative forecasts, whilst equally enabling the firm to generate long term, high margin revenues across the lifetime of this platform. CEO Arnab Basu, adding: “We are delighted at the success of our collaboration with our OEM customer, who has substantial global operations and market share in this sector. Our customer is dedicated to introduce best-of-breed solutions in their next-generation products to ensure we can live healthier and safer lives. We anticipate developing further products for this customer to support their ambitions.”