Sparton Awarded $24.9 Million for Q53F, Q62E, and Q36B Sonobuoy SubcontractsMarch 29, 2012
For Immediate Release
SCHAUMBURG, Ill. – March 29, 2012 – Sparton Corporation (NYSE: SPA) today announced the award of subcontracts valued at $24.9 Million, for the manufacture of three types of sonobuoys for the United States Navy as part of the Company’s ERAPSCO joint venture. Production will be performed at Sparton’s DeLeon Springs, Fla., facility and is expected to be completed by January 2014.
The Company was awarded an $18.1 million contract for the AN/SSQ-53F sonobuoy, a passive acoustic sensor used for detection, classification, and localization of adversary submarines during peacetime and combat operations. A contract in the amount of $4.7 million was awarded for the AN/SSQ-62E DICASS sonobuoy, an active acoustic sensor used in the final localization and attack phase of submarine prosecutions and the Company received a $2.1 million contract for the AN/SSQ-36B sonobuoy that measures the temperature profile of a water column providing sonar propagation and acoustic range prediction.
ERAPSCO is a joint venture between Sparton and USSI, a subsidiary of Ultra Electronics Holdings PLC. Under the ERAPSCO subcontract, Sparton will produce 30,555 sonobuoys. The types of sonobuoys to be produced are AN/SSQ-53F, AN/SSQ-62E, and AN/SSQ-36B which are used to support the United States Naval Antisubmarine Forces. The primary purpose of a sonobuoy is to detect acoustic emissions or reflections from potentially hostile submarines and transmit these signals to US Navy airborne antisubmarine warfare forces.
“Sparton is firmly committed to the development of innovative technology and to supplying the U.S. Navy with quality products that help secure our borders. We are proud to continue in our role as a technology partner for the U.S. Navy,” said Cary Wood, president and CEO, Sparton Corporation.
Currently headquartered in Schaumburg, Sparton is the only U.S.-owned designer and manufacturer of sonobuoys for the U.S. Navy.
About Sparton Corporation
Sparton Corporation (NYSE:SPA), now in its 112th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, and field service to technology-driven companies in the medical device, defense & security systems, and electronic manufacturing services markets. Headquartered in Schaumburg, Ill., Sparton currently has four manufacturing locations worldwide. The Company’s Web site may be accessed at http://www.sparton.com.
Safe Harbor and Fair Disclosure Statement
Certain statements described in this press release are forward-looking statements within the scope of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” and similar words or expressions. These forward- looking statements reflect Sparton’s current views with respect to future events and are based on currently available financial, economic and competitive data and its current business plans. Actual results could vary materially depending on risks and uncertainties that may affect Sparton’s operations, markets, prices and other factors. Important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, Sparton’s financial performance and the implementations and results of its ongoing strategic initiatives. For a more detailed discussion of these and other risk factors, see Part I, Item 1A, Risk Factors and Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in Sparton’s Form 10-K for the year ended June 30, 2009, and its other filings with the Securities and Exchange Commission. Sparton undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
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