White Electronic Designs Corporation Awarded $3 Million Medical Market Contract
18th June, 2007
White Electronic Designs Corporation (Nasdaq: WEDC) announced today that it has received a contract worth approximately $3.0 million for the design and manufacture of a test strip for a blood monitoring application.
Hamid Shokrgozar, chairman and chief executive officer of White Electronic Designs Corporation, commented, "We are excited to participate in this critical medical application. The medical marketplace demands extremely high quality and accuracy of results. The requirement for high-reliability and exceptional performance aligns itself perfectly with our company's long established reputation for leading-edge design and manufacturing of quality components."
According to a recent market report from the Business Communications Company, Inc., blood monitoring and testing systems accounted for 47.9% of medical point-of-care sales in 2005 and are expected to grow at a 9.4% compounded annual rate through 2010. "As we continue to expand and diversify into new target markets, we continue to mitigate our company's risk related to being dependent on any single market segment," added Mr. Shokrgozar. WEDC also introduced one of the industry's first medical series CompactFlash(R) memory cards earlier this year.
The test strip is manufactured using laminated layers of transparent plastic. After the patient places a drop of blood on the strip, the strip is inserted into an electronic instrument to measure blood chemistry. WEDC will produce the test strips in its Columbus, Ohio facility and will commence product deliveries in the company's fourth quarter.
About White Electronic Designs Corporation
White Electronic Designs Corporation designs and manufactures innovative high technology components, systems, and branded products for military, industrial, medical and commercial markets. Our Microelectronic products include high-density memory packages and advanced self contained multi-chip and system-in-a-chip modules that are used in a growing range of applications across the Company's markets. We also produce anti- tamper security coatings for mission-critical semiconductor components in defense applications. Our Display segment designs and manufactures enhanced and reinforced high- legibility flat-panel displays for commercial, medical, defense and aerospace systems. This segment also designs and manufactures digital keyboard and touch-screen operator-interface systems, and electromechanical assemblies for commercial, industrial and military systems. We are headquartered in Phoenix, Arizona and have design and manufacturing centers in Arizona, Indiana, Ohio, Oregon and China. To learn more about our business, as well as employment opportunities, visit our website at http://www.whiteedc.com.
Cautionary Statement
This press release contains "forward-looking statements". The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "estimate," "anticipate," "intend," "may," "might," "will," "would," "could," "project" and "predict," or similar words and phrases regarding expectations, generally identify forward-looking statements. . Specific forward-looking statements in this press release include, but may not be limited to, order delivery timing, the expectation to complete shipment of the order and recognize revenues in the next twelve months, the potential for add-on orders, the future market for our products, the ability of our products to add performance value, and the market and product growth potential. Forward-looking statements speak only as of the date the statement was made and are based upon management's current expectations and beliefs and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified, that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (i) the loss of one or more principal customers or delays or cancellations of orders due to the impact of adverse business conditions on one or more principle customers; (ii) the failure of customers to accept our anti-tamper packaging or the development of improved anti-tamper packaging by competitors; (iii) the failure to obtain Class K certification in the anticipated timeframe; (iv) the inability to procure required components and raw materials; (v) any downturn in the semiconductor, electronics, home appliance, telecommunications or other markets in which we operate, which could cause a decline in selling unit prices; (vi) reductions in military spending or changes in the acquisition requirements for military products; (vii) the ability to locate appropriate acquisition candidates, negotiate an appropriate purchase price, and integrate into our business the people, operations, and products from acquired businesses; (viii) the inability to develop, introduce and sell new products or the inability to develop new manufacturing technologies; (ix) changes or restrictions in the practices, rules and regulations relating to sales in international markets; and (x) a negative outcome in our current litigation or additional litigation complaints. Additionally, other factors that could cause actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements are included in the Company's Quarterly Reports on Form 10-Q for the quarters ended December 30, 2006 and March 31, 2007 and the Annual Report on Form 10-K for the fiscal year ended September 30, 2006 under the heading "Risk Factors." You are cautioned not to place undue reliance on our forward- looking statements. We do not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this press release, or to reflect the occurrence of unanticipated events, except as required by applicable law.
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