Analogic, L-3 Reach Settlement
Associated Press
Analogic, L-3 Communications Reach Settlement; Neither Party Required to Make a Payment
Tuesday November 9, 11:18 am ET
PEABODY, Mass. (AP) -- Medical and security imaging products maker Analogic Corp. said Tuesday that it reached an amicable settlement with New York-based defense contractor L-3 Communications Holdings Inc., regarding the pending lawsuit filed by L-3 in a Delaware court on June 16. Under the settlement, neither party is required to make a payment. Specific terms weren't disclosed.
President and chief executive John W. Wood said, "We are pleased to have successfully resolved this matter with L-3. We look forward to a renewed relationship and to supplying our EXplosives Assessment Computed Tomography systems to L-3, as we have for several years."
L-3 sells Analogic-built bomb detectors for airports, and in June the company sued Analogic, alleging that Analogic's solo bids to the Transportation Security Administration amounted to breach of contract and threatened L-3's business.
Analogic had a 15-year contract with L-3 to develop bomb scanners and supply spare parts, so that L-3 could sell them to airports for baggage screening purposes. After the events of 9/11, the market for these products surged and the Transportation Security Administration ordered upgrades to L-3's Examiner system. However, L-3 alleged that Analogic declined to participate in the upgrade, thereby hurting L-3's position in the burgeoning market for security devices.
Furthermore, solo bids made by Analogic to develop a new scanner and upgrade the Examiner system were viewed unfavorably by L-3, for whom Analogic is its sole supplier of the scanner technology.
For the 2003 fiscal year, L-3 accounted for more than 40 percent of Analogics' revenue stream, but that figure dropped off to 7 percent for the quarter ended April 30, 2004.
Shares of L-3 were up 29 cents at $69.29 in morning trading on the New York Stock Exchange. Shares of Analogic were down 2.8 percent, or $1.21, at $42.59 on the Nasdaq National Market.
One thing they fail to mention in the above article is that, while Analogic builds the frames for our equipment, our division of L-3 finishes manufacturing of the machines, including installing the X-ray source, X-ray detectors, wiring, and any computer equipment. Additionally, the algorithms used on these machines are engineered at L-3, and L-3 Software Engineers write the software that makes these machines work.
NOTE: This is my personal comment on the article, and is neither endorsed nor approved of by L-3 Communications.
Analogic, L-3 Communications Reach Settlement; Neither Party Required to Make a Payment
Tuesday November 9, 11:18 am ET
PEABODY, Mass. (AP) -- Medical and security imaging products maker Analogic Corp. said Tuesday that it reached an amicable settlement with New York-based defense contractor L-3 Communications Holdings Inc., regarding the pending lawsuit filed by L-3 in a Delaware court on June 16. Under the settlement, neither party is required to make a payment. Specific terms weren't disclosed.
President and chief executive John W. Wood said, "We are pleased to have successfully resolved this matter with L-3. We look forward to a renewed relationship and to supplying our EXplosives Assessment Computed Tomography systems to L-3, as we have for several years."
L-3 sells Analogic-built bomb detectors for airports, and in June the company sued Analogic, alleging that Analogic's solo bids to the Transportation Security Administration amounted to breach of contract and threatened L-3's business.
Analogic had a 15-year contract with L-3 to develop bomb scanners and supply spare parts, so that L-3 could sell them to airports for baggage screening purposes. After the events of 9/11, the market for these products surged and the Transportation Security Administration ordered upgrades to L-3's Examiner system. However, L-3 alleged that Analogic declined to participate in the upgrade, thereby hurting L-3's position in the burgeoning market for security devices.
Furthermore, solo bids made by Analogic to develop a new scanner and upgrade the Examiner system were viewed unfavorably by L-3, for whom Analogic is its sole supplier of the scanner technology.
For the 2003 fiscal year, L-3 accounted for more than 40 percent of Analogics' revenue stream, but that figure dropped off to 7 percent for the quarter ended April 30, 2004.
Shares of L-3 were up 29 cents at $69.29 in morning trading on the New York Stock Exchange. Shares of Analogic were down 2.8 percent, or $1.21, at $42.59 on the Nasdaq National Market.
One thing they fail to mention in the above article is that, while Analogic builds the frames for our equipment, our division of L-3 finishes manufacturing of the machines, including installing the X-ray source, X-ray detectors, wiring, and any computer equipment. Additionally, the algorithms used on these machines are engineered at L-3, and L-3 Software Engineers write the software that makes these machines work.
NOTE: This is my personal comment on the article, and is neither endorsed nor approved of by L-3 Communications.