Cobham Unit Recommends Survival Product Be Replaced
13.11.09, 12:07 Uhr |
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LONDON -(Dow Jones)- Cobham PLC (COB.LN), the defense and commercial aerospace equipment maker, said Friday it has recommended its customers replace one of its products designed to help military air crews survive emergency ejections after it was found to contain a "nonconforming microchip".
The recommendation follows a U.S. government investigation that began in July into Cobham's Conax Life Support business, based in Florida.
It centers on a nonconforming microchip within one of its SEAWARS devices, a water-activated mechanism that releases a parachute so that aircrew who eject in emergencies aren't dragged underwater by it.
The company is cooperating with the government's investigation and the business continues to operate as usual.
Cobham said the nonconforming microchip was supplied by an electronics component broker, and it passed rigorous internal tests and evaluations.
However, as a precautionary measures, it has told its customers the nonconforming microchips may be in products sold since 2005 and is recommending they be replaced.
There have been no known failures of the SEAWARS device due to the nonconforming microchip.
Conax had 2008 revenues of $96 million, representing just over 3% of the group's GBP1.47 billion sales.
Investec analyst Chris Dyett said the news is not a big issue for the company, considering the small size of the unit and the single product line the investigation relates to.
Cobham shares closed Thursday at 224p.
It centers on a nonconforming microchip within one of its SEAWARS devices, a water-activated mechanism that releases a parachute so that aircrew who eject in emergencies aren't dragged underwater by it.
The company is cooperating with the government's investigation and the business continues to operate as usual.
Cobham said the nonconforming microchip was supplied by an electronics component broker, and it passed rigorous internal tests and evaluations.
However, as a precautionary measures, it has told its customers the nonconforming microchips may be in products sold since 2005 and is recommending they be replaced.
There have been no known failures of the SEAWARS device due to the nonconforming microchip.
Conax had 2008 revenues of $96 million, representing just over 3% of the group's GBP1.47 billion sales.
Investec analyst Chris Dyett said the news is not a big issue for the company, considering the small size of the unit and the single product line the investigation relates to.
Cobham shares closed Thursday at 224p.
DJG/dok
