Defense contractor Arotech bringing nearly $4 million in new projects to Ann Arbor

Defense simulation and training contractor Arotech will direct the majority of recently awarded contracts to its Ann Arbor division First Ann Arbor Corp. Inc., according to a report in Crain’s Detroit Business.

The contracts, worth about $4 million, come primarily from the U.S. Air Force for programs in air warfare simulation.

According to the Crain’s report, the contracts will be used for a number of endeavors, but the primary focus is to develop new software for pilot weapon employment. Ann Arbor is Arotech’s primary training and simulation hub, but a vice president told Crain’s that the company recently completed a new laboratory on Orlando.

Earlier in 2013, Arotech reported a net loss of more than $2 million in 2012 on $80.1 in revenue, which, while not in the black, compared favorably with a net loss of $4.9 million on $62.1 million in revenue in 2011.

Arotech was in danger of being removed from the Nasdaq Stock Exchange in late 2012 after the company’s value hit a low point of 72 cents per share. Recently the company has bounced back above the one dollar threshold necessary to stay on the exchange and is trading at approximately $1.10 per share for a market capitalization of $16.4 million.

• Read the full story from Crain's Detroit Business.

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2