Knowles Announces MIL-PRF-55681-Qualified Capacitors for Mission-Critical Defense Applications

Rhea-AI Summary

Knowles (NYSE: KN) has announced the manufacture and testing of MIL-PRF-55681 qualified capacitors in the United States. These ceramic capacitors, designed for mission-critical defense applications, will be listed on the U.S. Department of Defense's Qualified Products List (QPL). The MIL-PRF-55681 qualification involves rigorous testing protocols and strict compliance with technical requirements.

This development allows Knowles to provide immediate access to higher-level screened components for critical military applications. The capacitors have demonstrated robustness for consistent performance under demanding environmental conditions, suitable for use in guidance and control systems, radar systems, electronic warfare, and power supply units.

Positive

• Achieved MIL-PRF-55681 qualification for ceramic capacitors
• Listing on the U.S. Department of Defense's Qualified Products List (QPL)
• Expansion of product offerings for aerospace and defense customers
• Potential for increased sales in the military and defense sector

Negative

• None.

Defense Industry Analyst

Knowles' achievement of MIL-PRF-55681 qualification is a significant milestone for the company's defense sector operations. This certification opens doors to lucrative government contracts and positions Knowles as a trusted supplier in the highly regulated defense industry. The inclusion in the Qualified Products List (QPL) is particularly noteworthy, as it streamlines procurement processes and potentially increases order volumes.

The move to manufacture these capacitors in the U.S. aligns with the growing trend of reshoring critical components for national security reasons. This could lead to preferential treatment in defense procurement decisions. However, investors should note that defense contracts often have long sales cycles and can be subject to budget fluctuations, which may impact revenue predictability in the short term.

Electronic Components Specialist

Knowles' expansion into MIL-PRF-55681 qualified capacitors demonstrates a strategic diversification of their product portfolio. These high-reliability capacitors are important in mission-critical applications where failure is not an option. The rigorous testing and compliance requirements create a high barrier to entry, potentially leading to improved profit margins for Knowles in this segment.

The company's ability to meet these stringent standards showcases their technical expertise and manufacturing capabilities. This could have positive spillover effects on their consumer electronics business, enhancing their reputation for quality. However, the defense market's cyclical nature and potential for geopolitical influences on demand should be considered when assessing the long-term impact on Knowles' financials.

Supply Chain Analyst

Knowles' decision to manufacture MIL-PRF-55681 capacitors in the U.S. is a strategic supply chain move. It addresses the growing concerns over supply chain security in the defense sector, particularly regarding critical electronic components. This localization of production could lead to faster lead times and reduced logistics costs for U.S.-based customers.

The QPL listing is important as it simplifies the sourcing process for defense contractors, potentially leading to increased market share for Knowles. However, investors should be aware of the potential challenges in scaling up domestic production, including higher labor costs and the need for specialized workforce training. The success of this initiative will depend on Knowles' ability to maintain cost competitiveness while meeting the strict quality standards required by defense customers.

The company's ceramic capacitors will also appear on the U.S. Department of Defense's Qualified Products List (QPL)

ITASCA, Ill., Aug. 14, 2024 /PRNewswire/ -- Knowles Corporation (NYSE: KN), a market leader and global provider of advanced micro-acoustic microphones and speakers, audio solutions, and high-performance capacitors and RF products, today announced they will manufacture and test MIL-PRF-55681 capacitors in the United States.

Developed by the Defense Logistics Agency (DLA), MIL-PRF-55681 is a critical military specification that sets strict standards for designing and developing ceramic capacitors used in defense and aerospace projects.

To achieve qualification under MIL-PRF-55681, a supplier must adhere to rigorous testing protocols and demonstrate compliance with precise technical requirements. This testing involves the extensive evaluation of factors like temperature stability, reliability under mechanical stress and shock, and adherence to tight tolerance levels.

"Many aerospace and defense customers already rely on our high performance and high reliability capacitors, and in response to their growing needs, we've taken this essential step to further support our U.S. military customer base," said Amrita Khemchandani, VP of Ceramic Capacitors at Knowles. "With this MIL-PRF-55681 qualification, our customers can now be assured of more immediate access from Knowles to higher level screened components for use in critical military applications."

Knowles' ceramic capacitors will also be listed on the U.S. Department of Defense's Qualified Products List (QPL). Components selected for this list have undergone comprehensive testing and evaluation to validate their suitability for government projects, thereby improving their availability to customers while also shortening the procurement process and reducing the need for quality audits and testing. Knowles' capacitors have demonstrated the robustness needed to perform consistently under environmentally demanding conditions, where minimizing failure risks is of the utmost importance.

In addition to the custom, high-reliability capacitors Knowles is trusted and renowned for, designers using a range of MIL (CDR) styles can now rely on Knowles to provide the standard military qualified capacitors they need for guidance and control systems, radar systems, electronic warfare, power supply units, and other high-risk applications. For more details on Knowles' MIL-PRF-55681 qualified capacitors, visit https://www.knowlescapacitors.com/Products/Capacitors/Aerospace-and-Defense.

About Knowles
Knowles is market leader and global provider of high-performance capacitors and radio frequency ("RF") filtering products, and advanced micro-acoustic microphones and balanced armature speakers, audio solutions, serving the medtech, defense, consumer electronics, electric vehicle, industrial, and communications markets. Knowles' focus on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enables us to deliver innovative solutions across multiple applications. Knowles, founded in 1946 and headquartered in Itasca, Illinois, is a global organization with employees in over a dozen countries. For more information, visit knowles.com.

Financial Contact:	Media Contact:
Sarah Cook	Bethany DeMarco
Knowles Investor Relations	Director, Marketing Communications
investorrelations@knowles.com	marketing@knowles.com

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SOURCE Knowles Corporation

FAQ

What is the significance of Knowles (KN) achieving MIL-PRF-55681 qualification for its capacitors?

The MIL-PRF-55681 qualification ensures that Knowles' capacitors meet strict military standards for use in critical defense and aerospace projects, potentially increasing their market share in this sector.

How does the Qualified Products List (QPL) listing benefit Knowles (KN) and its customers?

The QPL listing validates the suitability of Knowles' capacitors for government projects, improving availability, shortening procurement processes, and reducing the need for additional quality audits and testing.

What types of applications are Knowles' (KN) MIL-PRF-55681 qualified capacitors suitable for?

These capacitors are suitable for high-risk applications such as guidance and control systems, radar systems, electronic warfare, and power supply units in military and aerospace projects.

Where will Knowles (KN) manufacture and test its MIL-PRF-55681 qualified capacitors?

Knowles will manufacture and test the MIL-PRF-55681 qualified capacitors in the United States.