SOURCE: American Defense Systems, Inc.

December 29, 2008 08:15 ET

ADSI Expects 2009 Revenues to Exceed $52 Million or up 26% Over 2008 Revenue Forecast

2009 Gross Margins Expected to Range 33%-36%, Driving Profitable Operations

HICKSVILLE, NY--(Marketwire - December 29, 2008) - American Defense Systems, Inc. (ADSI) (AMEX: EAG), a leading provider of advanced transparent and opaque armor, architectural hardening and security products for Defense and Homeland Security, said it expects revenues for the fiscal year ending December 30, 2009 to exceed $52 million. This would represent an increase of 26% over the forecast for 2008 revenues of about $41 million (issued and only effective on November 10, 2008).

As announced in ADSI's third quarter financial results press release, the company expects to operate profitably in 2009. Management expects gross margins to range 33%-36% for the year ending December 30, 2009.

This forecast is supported by a number of factors, including a strong order flow resulting in a record contract backlog, which at September 30, 2008 totaled $55 million. This was up 22% from the end of the previous quarter and up 31% over the period ending September 30, 2007.

The forecast also takes into consideration the recently reported expected increase in armored Crew Protection Kit (CPK) orders from JCB Construction Equipment, the world's largest privately owned producer of construction machinery. ADSI forecasts CPK orders for equipping JCB's High Mobility Engineer Excavators (HMEEs) to generate more than $10 million over the course of about two years, beginning in early 2009, when ADSI expects to see the first orders from JCB for their contracted production of some 800 HMEEs for the US Army. These expected orders are not included in the September 30, 2008 backlog.

"We expect 2009 to bring another year of solid performance," said Anthony J. Piscitelli, chairman and CEO of American Defense Systems, "as we are fortunate to be in a line of business that we believe will do well even in these current economic times. In an uncertain world that continues to be in conflict, the need for our products and services to protect our military service personnel and homeland first responders has never been greater, and this is reflected in our growing order flow and backlog."

About American Defense Systems, Inc.

American Defense Systems, Inc. offers advanced solutions in the design, fabrication, and installation of transparent and opaque armor, security doors, windows and curtain wall systems for use by military, law enforcement, homeland defense and corporate customers. ADSI engineers also specialize in developing innovative, functional and aesthetically pleasing security applications for the mobile and fixed infrastructure physical security industry. For more information, visit the ADSI corporate Web site at

Some of the statements made by American Defense Systems, Inc. ("ADSI") in this press release, including, without limitation, statements regarding ADSI's anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements shall be covered by the safe harbor provisions for such statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "forecasts," "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "potential," "continues" and similar expressions are forward-looking statements. ADSI cautions you that forward-looking statements are not guarantees of performance. ADSI undertakes no obligation and disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve known and unknown risks and uncertainties that may cause ADSI's actual future results to differ materially from those projected or contemplated in the forward-looking statements. ADSI believes that these risks include, but are not limited to: ADSI's reliance on the U.S. government for a substantial amount of its sales and growth; decreases in U.S. government defense spending; ADSI's ability to contract further with the U.S. Department of Defense; ADSI's ability to comply with complex procurement laws and regulations; competition and other risks associated with the U.S. government bidding process; changes in the U.S. government's procurement practices; ADSI's ability to obtain and maintain required security clearances; ADSI's ability to realize the full amount of revenues reflected in its backlog; ADSI's reliance on certain suppliers; and intense competition and other risks associated with the defense industry in general and the security-related defense sector in particular.

Further, JCB has not placed any orders to date with ADSI relating to the aforementioned planned production of 800 HMEEs for the U.S. Army, and JCB is not obligated to place such orders. There can be no assurance that ADSI will obtain a sufficient number of orders under the JCB contract, if any at all, to generate more than $10 million in revenue or that such orders will be placed during the two year period referenced in this press release. Accordingly, ADSI revenues in connection with the matters referenced herein could be significantly less than the $10 million and may not be realized during such two year period.

Additional information concerning these and other important risk factors can be found under the heading "Risk Factors" in ADSI's filings with the Securities and Exchange Commission, including, without limitation, its most recent registration statement on Form 10. Statements in this press release should be evaluated in light of these important factors.

Contact Information

  • Company Contacts:
    Roger Ward
    V.P. of Marketing & Investor Relations
    American Defense Systems, Inc.
    Tel 516-390-5300, x326
    Email Contact

    Investor Relations:
    Ron Both
    Managing Director
    Liolios Group, Inc.
    Tel 949-574-3860
    Email Contact