FiberCore Wins $94 Million Multi-Year Contract
CHARLTON, Mass., Nov. 1 -- FiberCore Inc. has received a revised contract for single-mode optical fiber from an existing South American customer valued at approximately $94 million, $73 million of which is guaranteed under a take or pay provision, the company said. The South American company will also make advanced payments of $6 million over the next eight months, said FiberCore. This contract will take the place of an earlier contract worth $27 million, previously announced in August, and will be shipped from now until 2003 from Xtal, FiberCore's newly acquired facility in Brazil.
Unlike the softness in the component sector recently reported by several companies, the upward revision as well as the favorable terms of the contract from a major cabler represents continued evidence of the strength of the optical fiber market, said Mohd Aslami, President and CEO of FiberCore.
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