American Technology, New Navy Contracts

Monday, January 12, 2009

 American Technology Corporation (ATC) (NASDAQ: ATCO), a provider of directed sound products and technologies, has received two new LRAD orders totaling $2.7m from the U.S. Navy. The orders were received late last quarter (fiscal Q1) and are scheduled to ship in fiscal Q2.

The first order, totaling $2.3m, includes LRAD 500X systems for deployed security forces and enhanced LRAD 500 systems for force protection and anti-terrorist applications.
LRAD 500X is the only acoustic hailing device (AHD) that meets the U.S. Navy’s intelligible voice transmission, size, power, and weight requirements. This is the third major order secured through maritime security representative, Anchor Innovation.

“Recently, the U.S. Navy and the U.S. Army conducted extensive operational testing of the LRAD 500X,” said Tom Brown, president and CEO of ATC. “The testing was conducted in an extremely harsh waterside environment. Despite crosswinds and headwinds at speeds of 20 knots sustained, gusting to 35 knots, the LRAD 500X exceeded expectations. The successful testing, along with the positive experience of the Navy with previously deployed LRAD systems, paved the way for this."

The second order, totaling approximately $400,000, is the fifth delivery of LRAD 1000X systems under the Shipboard Protection System, Block 0 contract awarded to ATC by the U.S. Navy in October 2007. Under the contract, ATC is supplying LRAD 1000X systems to the 270 ships that comprise the Navy’s large vessel fleet. LRAD 1000X is the only AHD that meets the Navy’s voice intelligibility and range requirements for large vessel anti-terrorism applications and force protection.

ATC developed its proprietary LRAD product line to assist military and security forces in determining the intent of potential threats at safe distances, providing authorized personnel time and distance to scale their response based on a threat’s actions. LRAD is effective using directionality and focused acoustic output to clearly transmit critical information, instructions and warnings at distances in excess of 1000 meters. LRAD can be manually operated or integrated into a remotely controlled security network’s command and control center. Through the use of voice commands and deterrent tones, LRAD can create large safety zones, resolve uncertain situations, and potentially save lives on both sides of the device.

“We’re off to a strong start in the first half of fiscal year 2009 with over $5.5 million in new orders received in our first quarter, of which approximately $2.5 million were shipped, with the balance scheduled to ship in our second quarter,” Brown added. “We’re on course to surpass fiscal 2008 revenues as we expect to receive, announce and ship further directed sound orders this quarter.”


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