02 Dec 03. DRS Technologies Inc. (NYSE:DRS – News) received a five-year contract worth $514m to provide components, spares, and repair services for the Mast Mounted Sight on the U.S. Army’s OH-58D Kiowa Warrior helicopters.
The first-year award from that contract is worth about $92m, the company said, beginning in January. DRS had revenue of about $676m in the fiscal 2003 ended in March. In November, the company said it expects revenue of $940m to $965m in fiscal 2004.
A spokeswoman for DRS wasn’t immediately available to say whether the contract will affect that revenue forecast. A survey of three analysts by Thomson First Call, projects the company will generate $957.3 million in revenue in fiscal 2004.
DRS said it also received a $7m bridge contract to provide production support and field services for the optical systems until the master contract begins in January.
Both contracts were awarded by the U.S. Army Aviation and Missile Command and work for them will be done at the company’s optronics unit in Florida.The contracts extend product deliveries and service through 2008. DRS’ common stock rose 2%, or 53 cents, in midday trading to $27.01 a share.