Costa Mesa-based Ceradyne Inc., a maker of body armor for soldiers, said it received $107 million and likely will get a new $400 million deal with the Army.
The news sent Ceradyne’s shares up 10% Wednesday on a market value of $1.37 billion.
On a conference call Tuesday, the company said it received $107 million from the military to make its ceramic plates worn by ground forces in Iraq.
The money will help Ceradyne maintain production until it begins a $1.5 billion contract in June, according to the company.
Investors jumped on the news, as Ceradyne’s shares still are off 87% from their July high. The company earlier said it expects orders for its body armor to drop off in 2008.
The company has been looking to expand on its specially designed armor designed to protect from bullets and shrapnel.
It is working with Wisconsin’s Oshkosh Truck Corp. and Virginia’s Ideal Innovations Inc. to develop The Bull, an armored truck capable of withstanding roadside bombs.
Ceradyne also supplies material for solar panels, jet engines and braces for teeth.
