Proactive Investors - Run By Investors For Investors

Kromek secures US$58mln medical imaging contract

Kromek is a developer of high-performance radiation detection products based on cadmium zinc telluride and other advanced technologies
Medical imaging
It's a big contract - worth several times last year's annual revenues for Kromek

The revenue picture is getting brighter at Kromek PLC (LON:KMK), the supplier of detection technology, after it bagged a medical imaging contract.

The new contract is from an exiting original equipment manufacturing (OEM) customer and is expected to be worth a minimum of US$58.1mln over a seven-year period.

WATCH: Kromek Group fully focused on commercialisation; on track to achieve revenue growth

Kromek will supply cadmium zinc telluride (CZT) detectors and associated advanced electronics to be used in state-of-the-art medical imaging systems. Kromek's technology provides higher resolution detection capabilities enabling better patient outcomes, the company stressed.

The AIM-listed company Kromek will commence delivery immediately and will begin recognising revenue from the 2019/2020 fiscal year.

"We are delighted to have been awarded this multi-year contract from an existing OEM customer, which is one of the most significant that we have secured both from a strategic and monetary perspective,” said Arnab Basu, the chief executive officer of Kromek.

“It is also the first major contract that will be delivered from our new facility in the US that has been purpose built as a world-class production site for medical imaging products,” he added.

"Building on the US$80mln of contracts won over the last three fiscal years, this award strengthens and solidifies our revenue visibility and demonstrates the increasing commercial traction of our CZT detectors in our key target markets of medical imaging and nuclear detection," Basu said.

In early morning trading, Kromek shares were 5.4% higher at 29.55p.

 -- Adds share price --

View full KMK profile View Profile

Kromek Group PLC Timeline

Related Articles

July 12 2019
“We won US$80mln of new contracts to make the total US$145mln over the past three years"
July 04 2019
The company has so far in 2019 signed a number of deals for its technology, including an agreement for safety features in self-driving cars
May 15 2019
The company’s products can be used for wireless and mobile internet applications, while its military hardware encompasses a range of tactical and specialised communications antennas

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use