MTC Tech Soars on Simulator Pact

MTC Technologies' ( MTCT) shares shot up more than 13% Friday after the company received a contract from Ogden Air Logistics with a potential value of about $400 million.

The shares were recently trading at $22.15, up $2.65, or 13.6%.

MTC's Modern Technologies unit will initially receive $9 million in funding from Ogden for near-term engineering work on potentially building three Joint Threat Emitter (JTE) Systems. If the total contract, including building, is completed in 10 years, Modern could receive an estimated $400 million.

In its second, and most recent, quarter, MTC more than doubled its earnings to $5.9 million, or 19 cents a share, up from a pre-IPO amount of $2.5 million a year ago. The company completed its IPO on July 3, 2002, raising $44 million.

Analysts polled by First Call/Thomson Financial expect the company to earn 17 cents a share in its third quarter.

JTE systems are threat simulators used to prepare pilots for surface-to-air missile attacks. The systems Modern will make will be mobile and integrated with sensors and command and control centers.

The contract is divided in two-year segments, where Modern will initially provide a pre-production JTE.

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