San Diego Business Journal

Cubic Receives Navy Training Contract Worth Up to $112M

By Brad Graves Tuesday, December 3, 2013

San Diego-based Cubic Corp. said recently that it won a contract to develop training materials for the U.S. Navy’s littoral combat ship. The deal could be worth as much as $112 million.

The Orlando, Fla. office of subsidiary Cubic Defense Systems will develop hands-on training devices, desktop trainers and simulators for each of the ship’s mission bays.

Depending on its mission, a littoral combat ship carries one of three specialized payloads: One is adapted for mine countermeasures; another for anti-submarine warfare; and a third for surface warfare against small boats. Littoral combat ships can operate in shallow waters or the open ocean.

Cubic (NYSE: CUB) will provide training materials covering the preparation, launch, handling, recovery and securing of the ships’ mission equipment. The Cubic equipment will be used at training facilities in San Diego and Mayport, Fla.

Early this year, the company’s Orlando office pulled in other work developing courseware for littoral combat ship crews. That work, which includes tutorials similar to video games, could ultimately be worth $298.5 million to Cubic over five years.

Cubic, which has its headquarters in Kearny Mesa, will announce quarterly and year-end financial results on Dec. 5.