Dallas, Texas 06/30/2015 (Financialstrend) – Spartan Chassis, a subsidiary of Spartan Motors Inc (NASDAQ:SPAR), has teamed up with Vyper Adamas as the two companies look to leverage each other’s capabilities in developing combat vehicles. Spartan is a renowned manufacturer of vehicles that have gone a long way to saving lives of soldiers in war-torn areas.
Spartan’s Solid Credibility
Spartan Motors Inc (NASDAQ:SPAR) has already been awarded a number of subcontract orders for advanced tactical vehicles under the Light Armored Vehicle program and the Mine Resistant Ambush Protected. The department of defense recognizes the company as a top tier supplier and an on time deliverer of military vehicles as well as aftermarket parts and accessories.
Spartan Motors Inc (NASDAQ:SPAR)’s ability to produce quality vehicles was one of the reasons why Vyper Adams opted team up with it. As part of the agreement, Vyper will be looking to develop high-quality products and deliver in any quantity needed according to CEO, Nicholas Chapman.
The military is currently exploring concepts for future vehicles that are expected to be faster lighter, strong, and lethal. The two companies are expected to supply the needs as they continue to advance their technologies.
Change of Focus
Spartan comes into the deal having posted dismal earnings for the first quarter where its net loss soared to $2.9 million from a net loss of $2.1 million posted a year ago. Turning around the performance of the ER segment body business is the company’s main focus in the current quarter.
Revenue in the first quarter declined mostly hurt by lower vehicle production; something that the company is working on, in the current quarter. Spartan Motors Inc (NASDAQ:SPAR) also expects to replicate the same improvements and success achieved with the Delivery & Service Vehicle and Specialty Chassis & Vehicles segments in the second quarter.
Full year revenue should grow by mid-single digit mostly in the second and third quarters with the third quarter expected to register the highest growth.