Philips Healthcare added another year to its $77.2 million-per-anum deal from Uncle Sam for patient monitor systems.
The contract stipulates that the Royal Philips Electronics (NYSE:PHG) division supply patient monitors, training and spare parts to the Army, Navy, Air Force, Marine Corps and federal civilian agencies with a non-expiring option for renewal, according to the Dept. of Defense website.
The deal, which is slated for completion on March 29, 2012, exercises Philips Healthcare’s second option year for the contract. The Andover, Mass.-based company initially won the contract in March 2010.
Though the income from the deal is a drop in the bucket for Philips Healthcare’s annual revenue, which rose 10 percent in 2010 to $11.70 billion, the patient monitoring space is competitive and the military is a customer with deep pockets.
Last October, Philips Healthcare landed a $10 million contract with the Defense Logistics Agency for DIN PACs — digital imaging network picture archiving and communications systems. The deal also called for the company to provide the systems, used to make medical imaging studies portable, to each branch of the military.