Ken Nagy, CFA
Arotech Continues Order Momentum
Arotech Corporation (ARTX) is a defense and security products and services company, engaged in three business areas: interactive simulation for military, law enforcement and commercial markets; batteries and charging systems for the military; and high-level armoring for military and nonmilitary air and ground vehicles. ARTX has a very strong diversified revenue stream which cuts across both foreign and domestic military, municipalities, and private firms. In several of the business divisions the Company faces fragmented or often times no competition
On June 7, 2011 FAAC Incorporated, (which operates as part of Arotech Corporation’s Training and Simulation Division), received a contract award valued at $5.7M from the U.S. Marine Corps Systems Command, Program Manager for Training Systems (PM TRASYS) to increase the capability of the currently fielded Marine Operator Driving Simulators (ODS). The order is slated to be delivered in installments over the next 24 months.
$63.4 Million Order with Potential for $93.9 Million
This comes on the heals another large order. Recall that on May 9, 2011 FAAC announced it had received a $63.4 million contract award for the design, development, production, and delivery of 28 Virtual Clearance Training Suites (VCTS). VCTS simulates the wide array of large and small technical devices, purpose-built mine-protected detection and clearing vehicles, and ever-evolving tactics and techniques used by the U.S. Army to combat improvised explosive devices.
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