DRS Technologies to Record Charge in First Quarter for Weapon
July 27, 2007: DRS Technologies,
Inc. (NYSE: DRS) today announced that it would record a pretax
operating charge of about $37 million, related to the Thermal
Weapon Sights II (TWS II) program when it reports its fiscal
2008 first quarter results on August 9, 2007, due to recent
design modifications and write-off of existing inventory that
can no longer be utilized on the program. The company expects
to resume shipments during the current quarter (ending September
30, 2007). DRS expects to report revenues above $725 million
for the fiscal 2008 first quarter ended June 30, 2007, with
organic growth exceeding 15%.
New orders for products and services of approximately $900
million also are expected. The company raised its estimates
for the full fiscal year to between $3.05 billion and $3.10
billion for the fiscal year ending March 31, 2008 with expectations
for earnings per diluted share ranging from $3.00 to $3.10.
II program is providing a family of next-generation light, medium
and heavy Thermal Weapon Sights mounted on U.S. Army and Marine
Corps weapons. Utilizing thermal imaging technology, TWS II
is optimized to detect threats at greater distances and provides
a wider field of view, enhancing user survivability on the operational
and urban battlefields. Raytheon, BAE Systems and DRS are the
Pentagon's main suppliers for the program.