BEI Technologies Renews Strategic Relationship With Continental Teves
02 Marzo 2004 - 10:01PM
PR Newswire (US)
BEI Technologies Renews Strategic Relationship With Continental
Teves SAN FRANCISCO, March 2 /PRNewswire-FirstCall/ -- BEI
Technologies, Inc. announced it has executed a long term contract
for automotive rate sensor products with its largest customer,
Continental Teves (CT), a business unit of Continental A.G. Under
the new contract, the parties have agreed on a substantial
extension of their strategic business relationship. BEI will supply
all of CT's rate sensor product requirements for brake-related
Electronic Stability Control systems. CT will continue to take
delivery on the prior contract of an aggregate of 9.3 million units
for the sensor module assembly to complete the contract, according
to Charles Crocker, Chairman and Chief Executive Officer. Crocker
stated, "We believe this new contract will strengthen the long term
strategic relationship between CT and BEI. Also, it will greatly
assist BEI in achieving our goal of becoming the major independent
manufacturer of MEMS automotive rate sensor gyros in the world. To
this end, BEI's Systron Donner Automotive Division has initiated
significant capacity expansion in both quartz fork sensor
fabrication and the nugget sensor package production. Because the
contract requires BEI to be price competitive, BEI is shifting
emphasis to high volume sensor and package production, and we will
sell and transfer our cluster final assembly and test line to CT to
enable CT to perform those functions. This transition will begin
within the next several quarters and be mostly completed by the end
of calendar year 2005. For CT's next generation product, BEI will
transition to supply advanced sensor nuggets to CT for final
assembly and integration beginning mid year 2006." Crocker
continued, "To incorporate marketplace changes, our updated
technology roadmap developed with CT calls for the introduction of
a microgyro (quartz based single chip package) to the market in the
2006 time frame. Our previous exclusivity arrangements associated
withbrake-related products for autos and light trucks will remain
in place. We believe this new agreement significantly enhances the
competitive position of both companies within the global stability
control market." "BEI management believes this closer strategic and
manufacturing relationship with CT will reduce our revenue and cash
flow variability, reduce our market and manufacturing risk and
reduce our infrastructure and working capital requirements.
Finally, the benefits of high volume productionof quartz based
gyros for supply to the automotive stability control markets should
have a positive effect on our ability to supply low cost quartz
rate sensors for the emerging military and non-brake-related
automotive applications," concluded Crocker. Conference Call
Information: BEI will host a conference call and webcast on
Tuesday, March 2, 2004, at 1:45 pm to facilitate discussion and
answer questions related to this announcement. The dial-in number
to access the call is (800) 245-3043. A taped replay of the call
will also be available beginning approximately one hour after the
call's conclusion and can be heard until 11:59 p.m. ET on Tuesday,
March 16. The number to access the replay is (800) 938-2796. From
international locations, thereplay number is (402) 220-9030. No
passcode is required. To access the webcast, go to BEI's website at
http://www.bei-tech.com/. An archived webcast replay of the call
will also be available at that website. About BEI Technologies: BEI
Technologies, Inc. ("the Company" or "Technologies") is an
established manufacturer of electronic sensors, motors, actuators
and motion control products used for factory and office automation,
medical equipment, military, aviation and space systems. In
addition, sales to manufacturers of transportation equipment
including automobiles, trucks and off-road equipment have become a
significant addition to the Company's business in recent years. The
Company's micromachined quartz yaw rate sensors are being used in
advanced vehicle stability control systems and a significant
increase in the production of those sensors had been in progress
from the middle of 1998 to FY 2003 except for a decrease in
production in fiscal 2002 due to increased competition. The
Companyis currently transitioning to its next generation of
automotive inertial quartz based sensor products, remotely mounted
multi- sensor clusters with can bus and a multi rate sensor package
suitable for incorporation into electronic systems modules.
TheCompany also manufactures electronic steering wheel position
sensors, seat-memory modules, throttle position sensors, pressure
sensors, and other devices used in transportation systems. GyroChip
and MotionPak are registered trademarks of the Company. Except for
historical information, this news release may be deemed to contain
forward-looking statements that involve risks and uncertainties,
including statements with respect to future timely development,
acceptance and pricing of new products; potential impact of
competitive products and their price; the ability to manufacture
products in sufficient volume on an efficient and timely basis;
general economic conditions as they affect the Company's customers
and strategic partners, as well as other risks detailed from time
to time in the Company's reports to the Securities and Exchange
Commission, including the Company's Form 10-K for fiscal 2003.
DATASOURCE: BEI Technologies, Inc. CONTACT: John LaBoskey, Senior
Vice President/CFO of BEI Technologies, Inc., +1-415-956-4477 Web
site: http://www.bei-tech.com/
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