DOWNERS GROVE, Ill., July 1, 2008 (PRIME NEWSWIRE) -- ATC Technology Corporation (ATC) (Nasdaq:ATAC), today announced that its long-time customer, Honda, has advised the Company of its decision to evenly split future requirements for remanufactured transmissions between ATC and another long-term supplier, effective as of the fourth quarter.
In commenting on Honda's decision, Don Johnson, Chairman and CEO said, "We have been working with Honda over the past several months to determine the extent of our participation in Honda's sourcing of remanufactured transmissions. This sourcing allocation decision, which is effective October 1, 2008, is important to the Company as we will participate equally in the remanufacturing of past, current and future transmission models. Additionally, in the past year, Honda has awarded us other programs unrelated to transmission remanufacturing, such as the remanufacturing of half-shafts and logistics services related to core qualification and processing for other remanufactured products. While individually these other programs are modest in scope, they are important to our customer and we are pleased that we have been selected to provide these services to Honda. Although these decisions collectively will not materially impact our financial guidance for 2008, they are further evidence of the value we bring to our relationship with Honda. We expect approximately $50 million in 2008 revenue with Honda."
ATC Technology Corporation is headquartered in Downers Grove, Illinois. The Company provides comprehensive engineered solutions for logistics and refurbishment services to the consumer electronics industries and the light and medium/heavy duty vehicle service parts markets.
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