LONDON (ShareCast) - (Sharecast News) - Concurrent Technologies announced on Friday that it has secured a $5.25m contract to provide design services to a major US defence prime contractor, marking its first such engagement and a strategic move into large-scale outsourced design work.
The AIM-traded computing systems manufacturer said the deal was the first time the customer has outsourced the design of its own computer product, and would run through 2025 and 2026.

It said the project would leverage its expertise in developing high-performance, open standards, Intel-based computing products, while incorporating customer-specific technology and features.

The company said the customer saw the product as "transformative", aligning its operations with the US Department of Defence's push for open standards and more agile solutions, while allowing the customer to focus on software and systems integration.

"This contract represents a fantastic step for Concurrent into delivering large scale design services, and enables us to strengthen the growth and capability development of our engineering team," said chief executive Miles Adcock.

"We have spent extensive time with this customer on collaboration and a major aspect to this project is dovetailing with their quality and manufacturing systems to enable them to produce the product in their own factory and integrate it into their wider enterprise.

"We are well positioned to benefit from the growing trend of outsourced hardware development, and this contract provides a valuable opportunity to assess the potential of design services as a future line of business."

At 1516 BST, shares in Concurrent Technologies were up 3.33% at 229.4p.

Reporting by Josh White for Sharecast.com.

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