ROANOKE, Va., Jan. 24 /PRNewswire-FirstCall/ -- Optical Cable Corporation , today announced that the Company has entered into a five-year contract to supply Tactical Fiber Optic Cable Assemblies (TFOCA) to the U.S. Army Communications-Electronics Command (CECOM) located at Ft. Monmouth, New Jersey. CECOM deploys ground tactical fiber optic cable assemblies worldwide to support the tactical communication requirements of the U.S. military, as well as certain other allied militaries.
The U.S. Army will purchase from Optical Cable Corporation up to $2.6 million of the TFOCA assemblies over the life of the contract, if the U.S. Army exercises all delivery options. The contract also gives the U.S. Army the ability to extend the contract for a sixth year.
New Contract in Addition to Existing Contract with CECOM
The CECOM contract announced today is in addition to Optical Cable's existing five-year contract with CECOM awarded in November 2006. Under the existing contract, CECOM has the right to acquire up to approximately $4.6 million of TFOCA assemblies over the life of the contract, if all delivery options are exercised. CECOM has already purchased or ordered from the Company approximately $3.0 million of TFOCA assemblies under the existing 2006 contract.
Leading Supplier of Tactical Fiber Optic Cables to U.S. and Allied Militaries
Optical Cable Corporation believes its military tactical cables are widely recognized as the most durable and reliable fiber optic cables available, having undergone an extensive series of qualification tests. These tests have demonstrated that the Company's military tactical cables perform reliably in a wide range of extreme environments, ranging from the hot deserts of the Middle East to the extreme cold of arctic regions. In addition, the Company's military cables are extremely resistant to damage from any number of typical battlefield conditions including being exposed to harsh chemicals and being driven over by both wheel and track-driven armored vehicles.
The Company originally qualified the fiber optic cable used in TFOCA assemblies in 1999. Optical Cable also manufactures military tactical fiber optic cables in other configurations used by both the U.S. and allied militaries. The Company's military tactical fiber optic cables include products qualified to the U.S. Department of Defense's MIL-PRF-85045/8A standard, and U.K. Ministry of Defence's Def-Stan 60-1, Part 3 standard.
Optical Cable's manufacturing facility is certified by the U.S. Department of Defense as a MIL-STD-790F facility. This facility certification is considered one of the most respected in the defense industry as it requires compliance with stringent government requirements for product design, documentation, process control, and management practices.
Management Comments
"Optical Cable is very pleased to have been selected by the U.S. Army, once again, as its preferred supplier of TFOCA assemblies for ground tactical operations worldwide," said Mr. Barney Dean, Director of Military and Government Sales of Optical Cable Corporation. "Our military-grade fiber optic cables are well known for their outstanding performance by U.S. and allied militaries, and our state of the art production systems ensure that this high quality is consistently maintained," said Mr. Dean.
"Optical Cable Corporation takes great pride in being the U.S. Army's supplier of choice for battlefield cable assemblies, which form the backbone of critical battlefield communications and management systems," said Mr. Neil Wilkin, President and Chief Executive Officer of Optical Cable Corporation. "Optical Cable is committed to providing our service men and women with the most durable and reliable fiber optic cable assemblies available," said Mr. Wilkin.
Company Information
Optical Cable Corporation is a leading manufacturer of fiber optic cables primarily sold into the enterprise market, and the premier manufacturer of military ground tactical fiber optic cables for the U.S. military. Founded in 1983, Optical Cable Corporation pioneered the design and production of fiber optic cables for the most demanding military field applications, as well as fiber optic cables suitable for both indoor and outdoor use. The Company's current broad product offering is built on the evolution of these fundamental technologies, and is designed to provide end-users with fiber optic cables that are easy and economical to install, provide a high degree of reliability and offer outstanding performance characteristics. Optical Cable Corporation sells its products worldwide for uses ranging from commercial and campus installations to customized products for specialty applications and harsh environments, including military applications. The Company manufactures its high quality fiber optic cables at its ISO 9001:2000 registered and MIL-STD- 790F certified facility located in Roanoke, Virginia.
Further information about Optical Cable Corporation is available on the World Wide Web at http://www.occfiber.com/.
FORWARD-LOOKING INFORMATION
This news release by Optical Cable Corporation (the "Company") may contain certain "forward-looking" information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning the Company's outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to risks and uncertainties that may cause actual events to differ materially from the Company's expectations. Factors that could cause or contribute to such differences include, but are not limited to, the level of sales to key customers, including distributors; timing of certain projects and purchases by key customers; the economic conditions affecting network service providers; corporate and/or government spending on information technology; actions by competitors; fluctuations in the price of raw materials (including optical fiber); the Company's dependence on a single manufacturing facility; the Company's ability to protect its proprietary manufacturing technology; market conditions influencing prices or pricing; the Company's dependence on a limited number of suppliers; the loss or conflict with one or more key suppliers or customers; an adverse outcome in litigation, claims and other actions, and potential litigation, claims and other actions against the Company; an adverse outcome in regulatory reviews and audits and potential regulatory reviews and audits; adverse changes in state tax laws and/or positions taken by state taxing authorities affecting the Company; technological changes and introductions of new competing products; changes in end-user preferences of competing technologies, including copper cable and wireless, relative to fiber optic cable; economic conditions that affect the telecommunications sector, certain technology sectors or the economy as a whole; terrorist attacks or acts of war, and any current or potential future military conflicts; changes in the level of military spending by the United States government; ability to retain key personnel; the impact of changes in accounting policies, including those by the Securities and Exchange Commission and the Public Company Accounting Oversight Board; the Company's ability to successfully comply with, and the cost of compliance with, the provisions of Section 404 of the Sarbanes-Oxley Act of 2002 or any revisions to that act which apply to the Company; impact of future consolidation among competitors and/or among customers adversely affecting the Company's position with its customers and/or our market position; actions by customers adversely affecting the Company in reaction to the expansion of the Company's product offering in any manner, including, but not limited to, by offering products that compete with its customers, and/or by entering into alliances with, and/or making investments in or with, parties that compete with and/or have conflicts with customers of the Company; adverse reactions by customers, vendors or other service providers to unsolicited proposals regarding the acquisition of the Company by another company; the additional costs of considering and possibly defending the Company's position on such unsolicited proposals regarding the acquisition of us by another company; impact of weather or natural disasters in the areas of the world in which the Company operates and markets its products; changes in market demand, exchange rates, productivity, or market and economic conditions in the areas of the world in which the Company operates and markets its products and the Company's success in managing the risks involved in the foregoing. The Company cautions readers that the foregoing list of important factors is not exclusive and the Company incorporates by reference those factors included in current reports on Form 8- K.
AT THE COMPANY:
Neil Wilkin Robert Schmucker
President & CEO Senior Program Manager
(540) 265-0690 (540) 265-0690
