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  • tthorp2003 tthorp2003 Apr 18, 2012 4:41 PM Flag

    $600mm and $874mm Contracts are Separate Contracts

    $600mm and $874mm Contracts are Separate Contracts

    From Textron's CEO Discusses Q1 2012 Results - Earnings Call Transcript

    "Starting with systems, we won 2 important unmanned aerial systems fee-for-service contracts from the U.S. DoD. The business model for this fee-for-service programs is different, and we normally -- we will be investing CapEx in the platforms upfront and in turn we'll be receiving cash over time as we operate the assets to deliver services to our customer. These 2 contracts were important for a number of reasons. First, the addition of what we expect will be meaningful revenue streams over the next several years of Textron Systems. And second, both these awards are based on our Aerosonde unmanned aircraft, which is a smaller air vehicle than our traditional Shadow models. So we'll now have a second product platform deployed with the U.S. military, which should lead to future opportunities. Finally these contracts provide an opportunity to demonstrate the attractiveness of fee-for-service UAS arrangements for additional U.S. and foreign military applications."