The U.S. Navy awarded Rancho Bernardo-based LRAD Corp. an indefinite-delivery, indefinite-quantity contract that could be worth up to $7.4 million over five years.
Under the deal announced March 30, LRAD (Nasdaq: LRAD) will produce acoustic hailing devices for the Military Sealift Command. The devices are high-volume loudspeakers that send highly directional sound. Devices will also go on other Navy and U.S. Coast Guard ships. Work on the contract will be done in San Diego.
LRAD said that the first delivery order under the deal was awarded along with the contract.
The Naval Surface Warfare Center of Crane, Ind. awarded the deal. The work follows multi-year contracts awarded by the Navy in 2007, 2008, 2010 and 2013, said CEO Tom Brown.
LRAD is undergoing a change in leadership. Activist shareholders have named two new directors to the company board. Brown agreed to step down as of June 30 and agreed to leave his seat on the board of directors.