Orbit to Write-Off Remaining Goodwill on its TDL Subsidiary
Excluding the Write-Off, 2012 Fourth Quarter Net Income to Equal or Exceed 2012 Third Quarter Net Income
Orbit International Corp. (NASDAQ:ORBT) today announced that it will release its financial results for the fourth quarter and year ended December 31, 2012 on Thursday, March 7, 2013 before the opening of the stock market.
Orbit’s Chief Executive Officer, Mitchell Binder and Chief Financial Officer, David Goldman will host a conference call for investors at 11:00 am ET on Thursday, March 7, 2013 to discuss the financial results. Interested parties may participate in the call by dialing (201) 493-6744; please call in 10 minutes before the conference call is scheduled to begin and ask for the Orbit International conference call. After opening remarks, there will be a question and answer period. Questions may be asked during the live call, or alternatively, you may e-mail questions in advance to [email protected]
In connection with the planned release of 2012 fourth quarter and full year results, the Company announced that it will record a non-cash goodwill impairment charge of $820,000 representing the remaining goodwill associated with its Tulip Development Laboratory, Inc. (“TDL”) subsidiary which Orbit acquired in April 2005.
Excluding the non-cash goodwill impairment charge, but subject to completion of the year-end audit, the Company expects net income per diluted share for the 2012 fourth quarter to equal or exceed the $0.17 per diluted share reported in the 2012 third quarter, reflecting the strong operating performance of Orbit’s other operating units.
Mr. Binder commented, “Several TDL orders which we expected before 2012 year-end have been delayed due to ongoing qualification stage efforts or other factors beyond our control. Of the larger TDL orders that we anticipated for late 2012, only one, a major helicopter order with a value of $1,143,000 has been received to date. While we continue to expect to receive the other orders, timing is uncertain. Consequently, as required by ASC 350, following the annual goodwill impairment testing, we will now write-off the remaining intangible value in our TDL subsidiary.”
Mr. Binder concluded, “With this charge, all goodwill for our TDL and Integrated Combat Systems, Inc. subsidiaries has now been written-off. Furthermore, excluding the impairment charge, we expect our 2012 fourth quarter operating performance to equal or exceed our 2012 third quarter performance.”
Orbit International Corp. is involved in the manufacture of customized electronic components and subsystems for military and nonmilitary government applications through its production facilities in Hauppauge, New York, and Quakertown, Pennsylvania; and designs and manufactures combat systems and gun weapons systems, provides system integration and integrated logistics support and documentation control at its facilities in Louisville, Kentucky. Its Behlman Electronics, Inc. subsidiary manufactures and sells high quality commercial power units, AC power sources, frequency converters, uninterruptible power supplies and COTS power solutions.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, but not limited to, statements regarding any acquisition proposal and/or the potential sale of the Company and whether such proposal or a strategic alternative thereto may be considered or consummated; statements regarding the Company’s expectations of its operating plans, deliveries under contracts and strategies generally; statements regarding its expectations of the performance of business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit’s filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, annual reports on Form 10-K and its other periodic reports. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT Mitchell Binder, President & Chief Executive Officer, 631-435-8300
or Investor Relations Counsel, Lena Cati, 212-836-9611, The Equity Group Inc.