When you think "U.S. defense contractors," Japan's camera-making corporate giant Canon (NYSE:CAJ) probably isn't the first name that comes to mind. Nevertheless, Canon just just won a sizable contract from the U.S. Department of Defense.
The contract in question, announced last night, exercises a fourth option year on an existing contract with Canon subsidiary Virtual Imaging, and promises to pay the maker of diagnostic imaging equipment up to $111.1 million to supply the Defense Logistics Agency with radiology systems, subsystems, and components through June 23, 2014.
Additional awards could be forthcoming as well. According to the DoD's announcement, this contract is only the fourth option year out of a potential eight one-year options that could eventually be awarded to the Canon subsidiary.
Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.