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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 --

Quick facts: Kromek Group PLC

Price: 19.75 GBX

AIM:KMK
Market: AIM
Market Cap: £68.07 m
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