Ophir Optronics Ltd. (TASE:OPIR) has signed a contract worth about $23 million to supply infrared optical components to Autoliv Inc. (NYSE: ALV), a globally recognized manufacturer of vehicle safety equipment. The components will be installed in next-generation night vision equipment that Autoliv will supply to BMW, Audi, and Rolls Royce. The company's US subsidiary, Ophir Optics LLC signed the framework agreement.
Autoliv has development agreements with other carmakers.
Ophir Optronics said that the revenue estimate was based on forecasts of non-binding orders from Autoliv as part of the framework agreement. Ophir Optronics cautioned that actual sales could be substantially different from the estimate, depending on developments in the car market, the rate that carmakers adopt the system, and negotiations between Autoliv and other carmakers.
The agreement arranges for the delivery of components through the end of 2013. It supersedes the framework agreement between Ophir Optics LLC and Autoliv from November 2008, under which Ophir Optics sold $5.8 million of components to Autoliv to date.
Ophir Optronics' share price rose 4.6% in early trading today to NIS 13.55, giving a market cap of NIS 331 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2010
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