A Medical Device Daily

Zoll (Chelmsford, Massachusetts), a manufacturer of resuscitation devices and related software solutions, reported that it has received an $11.6 million contract as part of the emergency preparedness project for the State of California. Zoll expects it will deliver more than 1200 M Series and AED Pro defibrillators to strategic locations within California by the end of calendar 2007.

The California Department of Public Health accelerated its emergency plans in response to the immense devastation Hurricane Katrina inflicted on the Gulf Coast in 2005. The Zoll equipment is being utilized as part of a major preparation effort to respond to a pandemic resulting from an earthquake, mudslide, fire, flu outbreak, terrorist or nuclear attack.

The California contract is being coordinated by consolidator Global Protection Acquisition (West Berlin, New Jersey).

The Zoll defibrillators will be available at multiple sites in California should a large-scale event occur when patients cannot all be treated at hospitals. The units, owned by the state of California, will be maintained and warehoused at multiple sites to ensure their readiness. Zoll will provide support in this effort.

Richard Packer, president/CEO of Zoll, said that the contract “calls for shipment in multiple phases over this quarter and next. In addition, Zoll will be providing some modest ongoing support as part of the readiness effort. We are currently reviewing accounting for the contract and have not yet determined the timing of revenue recognition. Therefore, we are not changing our guidance at this time, but anticipate a potentially larger backlog than usual coming out of fiscal 2007.

“Given its size, this deal also reflects volume pricing and, therefore, our related gross margin will be lower than normal. We are happy to see continued progress in government-funded business, this time from a state government rather than the federal government.”

The company said its M Series combines total diagnostic and therapeutic capabilities in a small, lightweight unit with a high contrast display. It says that the AED Pro is the most rugged and durable AED on the market, built to withstand rain, heat and cold, and passes a 1.5 meter drop test. It features Real CPR Help for gauging the rate and depth of chest compressions to improve the efficacy of compressions during a rescue.

No Comments