Radiation technology group
Kromek has signed a long term contract with a small-and-medium-enterprise (SME) manufacturer of x-ray diagnostic and analysis equipment in China.
The contract allows the manufacturer rights for the supply of the CZT-based detection modules in China and Chinese territories.
The rights are for a medical diagnostic application with a large market potential and the supply agreement is conditional upon minimal yearly revenues to Kromek.
The contract will deliver revenues of $1.4m and $10.2m in the financial years 2014-15 and 2015-16. For over the next seven years the contract has a total value of up to $159m.
Advanced cash payments amounting to $0.26m are expected from the customer in the current fiscal year, part of which has already been received. The first supply commences in October 2014.
Arnab Basu, Chief Executive Officer of Kromek, said: "We are pleased to announce significant, further traction in the medical imaging space, particularly in a large, high growth market such as China. The signing of this contract represents further endorsement of our offering and highlights the role we can play as global medical imaging capability advances, with Kromek's technology at its heart as a key enabler."
As of 09:00 the share price remained at 40.5p.
WS