Kromek wins new $58m medical imaging contract

(Sharecast News) - Detection technology provider Kromek has been awarded a new contract by an existing OEM customer, it announced on Monday, expected to be worth a minimum of $58.1m over a seven-year period.The AIM-traded firm said that under the terms of the contract, it would supply cadmium zinc telluride detectors and associated advanced electronics to be used in medical imaging systems.It said its technology provided higher resolution detection capabilities, enabling better patient outcomes.Kromek would deliver the contract over a seven-year period, starting immediately, and would begin recognising revenue from the 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 Kromek chief executive officer Arnab Basu."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. "Building on the $80m 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."