New $12.6m contract with existing OEM customer

RNS Number : 5831W

Kromek Group PLC

28 April 2016

 

28 April 2016

Kromek Group plc

("Kromek" or the "Company")

Kromek secures a five-year contract totalling $12.6m with long-standing OEM customer

Development and supply of detectors for launch of new generation of bone mineral densitometry systems

Kromek (AIM: KMK), a radiation detection technology company focusing on the medical, security and nuclear markets, is pleased to announce that it has been awarded a new contract with a current OEM customer, a worldwide producer and exporter of bone mineral density ("BMD") diagnostics systems, for developing and supplying detectors to be incorporated into the customer's new generation systems. The contract, worth $12.6m, is expected to start during the first half of the financial year to 30 April 2017 and to be delivered over a 5-year period.

Under the terms of the agreement, Kromek's detector modules will be incorporated into the customer's systems to produce some of the most accurate imaging to diagnose the strength and health of bones. The new generation of diagnostic systems will allow clinicians to accurately detect and monitor progression of osteoporosis in patients resulting in more effective treatment.

Arnab Basu, CEO of Kromek, said: "It is very pleasing to secure such a significant contract from a long-standing customer. It strengthens our relationship with them and further validates the benefits of our BMD diagnostic systems. The agreement represents the continued healthy conversion of our pipeline into orders as we continue to win new business in the medical sector and across our key target markets of SPECT, CT and networked radiation detectors."

Enquiries

Kromek Group plc
Arnab Basu, CEO Derek Bulmer, CFO	[phone]
Cenkos Securities plc
Bobbie Hilliam (NOMAD) Julian Morse (Sales)	[phone]
Luther Pendragon Ltd
Harry Chathli, Claire Norbury, Alexis Gore	[phone]

About Kromek Group plc

Kromek Group plc is a UK technology company (global HQ in County Durham) and a leading developer of high performance radiation detection products based on cadmium zinc telluride ("CZT").  Using its core CZT technology, Kromek designs develops and produces x-ray and gamma ray imaging and radiation detection products for the medical, security screening and nuclear markets.

The Group's products provide high resolution information on material composition and structure and are used in multiple applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, and the analysis of radioactive materials.

The Group's business model provides a vertically integrated technology offering to customers, from the growth of CZT crystals to finished products or detectors, including software, electronics and application specific integrated circuits ("ASICs").

The Group has operations in the UK and US (California and Pennsylvania), and is selling internationally through a combination of distributors and direct OEM sales.

Currently, the Group has over a hundred full time employees across its global operations. Further information on Kromek Group is available at www.kromek.com.

 

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