Shares in advanced after the electronic component maker announced an £11m contract renewal to supply US-based Varian Medical Systems with electron devices for use in radiotherapy cancer treatment and cargo screening systems.
The contract will be worth at least £11m over two years, and is the first of a number of anticipated multi-year contract renewals for electron devices used in linear accelerators, said the group.
"This multi-year contract renewal with Varian is a demonstration of the strong and close relationships we build with our strategic partners," said chief executive Keith Attwood.
Microwave radio and satellite transmission products supplier is still lower on yesterday's news that earnings for the current year will be below expectations.
Although revenue for the current year will be towards the upper end of market expectations, the company said operating margins in the US business of its subsidiary, MRC, have remained under pressure, thus resulting in the lowered earnings expectations.
Part of the problem at MRC has been the increased costs of working to complete the BAS 2Ghz relocation programme in the USA.
