"Based on historical volumes of inventory under our current DOD surplus contract, we would expect to handle an estimated $9 billion of original acquisition value of property over the contract performance period of our new contract," the company said.
Liquidity Services, which is a market place for surplus and salvage assets, said the contract ensures it will remain the primary channel for the sale of DOD usable surplus properties, in key assets including aerospace, audio and video, and boats and other marine vessels.
The award comes from the DOD's Defense Logistics Agency Disposition Services and is for two years, beginning in the early part of 2015.
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Terms of the contract say Liquidity will pay the DLA approximately 4.35% of the DOD's original acquisition value for all referred items, while retaining 100% of the profit from the resale of the property.
Shares of Liquidity Services are flat in pre-market trading on Thursday.
Separately, TheStreet Ratings team rates LIQUIDITY SERVICES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIQUIDITY SERVICES INC (LQDT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."