AS&E Lands $60 Million Government Contract

An unidentified "government agency" has awarded American Science & Engineering (NASDAQ: ASEI  ) a $60 million contract to supply X-ray inspection systems, the company (partially) revealed Tuesday.

And while the precise identity of the agency in question was not revealed, other details were. First and foremost, this contract is what is known as an indefinite-delivery, indefinite-quantity (IDIQ) award. As such, it's best considered as an "umbrella" contract whose dollar value may or may not ultimately be reached. The actual value of the revenues AS&E will receive depends on how many, and how large, task orders it receives under the IDIQ umbrella.

In that regard, AS&E also announced Tuesday that it has already received its first such task order, with its government agency customer ordering $11.2 million worth of X-ray equipment for use in "counter-drug and anti-terrorism missions."

Despite the good news, AS&E shares closed down 0.3% at $56.03 on Tuesday.

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