CENTER VALLEY, Pa., Jan. 7, 2013 /PRNewswire/ -- TechPrecision Corporation (OTC Bulletin Board: TPCS) ("TechPrecision" or "the Company"), an industry leading manufacturer providing engineering, precision large-scale machined, fabricated metal and electrical components for complete tested systems with customers in the alternative energy, cleantech, medical, nuclear, defense, aerospace and other commercial industries, today announced that it has signed a five-year agreement valued at more than $115 million to exclusively produce complete product assemblies for Proton Beam cancer treatment equipment in the U.S. and Asia.
"This agreement reflects the culmination of years of work with our customer to develop, perfect, and certify an efficient manufacturing process to produce a revolutionary system that provides a significant reduction in the size, cost and complexity of operating a proton therapy center," said Mr. James Molinaro, CEO of TechPrecision Corporation. "This collaboration continues to be strategically beneficial to both organizations and now that the system has FDA clearance, pent-up demand indicates strong potential for this technology."
The Proton Beam technology was recently cleared by the FDA (Food and Drug Administration). This agreement covers exclusive production for units that will be used in the U.S. and Asia and supplied from the Company's Ranor and WCMC divisions. Under the terms of the agreement, the Company expects to begin shipping initial assemblies during Q1 FY2014 and continuing through Q4 FY2018. Individual purchase orders will be issued to TechPrecision for specific unit shipments within the terms of this agreement. These purchase orders will determine timing of shipments and revenue to TechPrecision, as well as minimum quantities for delivery. The Company has already successfully shipped five of these assemblies under a prior agreement.
"This agreement will benefit both our Ranor and WCMC divisions, as we will produce units to meet the market demand in the United States and Asia," continued Mr. Molinaro. "As this agreement goes forward, cancer patients are the big winners as it signals a new, more cost-effective and less-invasive procedure that is now an available option to the medical community. An additional benefit of this agreement is the further diversification of TechPrecision's revenue. Clearly, we are no longer reliant on the alternative energy sector, and medical shipments will become an increasingly important contributor to our top- and bottom-line results as this agreement transitions to purchase orders."
About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), cleantech, medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision's goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
SOURCE TechPrecision Corporation