Orbit International Corp. (NASDAQ:ORBT), an electronics manufacturer and software solutions provider, today announced that its Integrated Combat Systems, Inc. (“ICS”) subsidiary which is part of Orbit’s Electronics Group, received an initial production order from a U.S. Navy Procurement Agency valued at more than $626,000 for its MK 110 Signal Data Converter (“SDC”).
As announced in April 2012, ICS received a base contract award valued in excess of $5,758,000 for MK 110 SDC prototype units. In April and May of 2012, ICS received two initial task orders under this base contract with a combined value of approximately $1,597,000. These initial task orders allowed the U.S. Navy to test the design competency of the MK 110 SDC and evaluate this unit against the full range of environmental trials, including MIL-S-901D shock.
This latest order represents the first production award under this agreement, with delivery due by February 2014. Including this order, MK 110 SDC orders received under the base contract total approximately $2,277,000. Additional orders for the remainder of the contract are expected over the next four years that could total approximately $3,000,000.
The MK 110 SDC is a major configuration item of the GCS MK 160 MOD. It includes custom fabricated enclosures; Commercial-Off-The-Shelf and Non-Developmental Items components, which also are designed to meet the most stringent U.S. Navy operational systems requirements. The MK 110 SDC is to be deployed on DDG 51-78 as part of the AEGIS Modernization Program and is operationally integrated with the 5”/54 MK-45 Gun Mount systems.
Julie McDearman, ICS’s Chief Operating Officer, commented, “We recently completed a demanding year-long environmental assessment of our SDC design, which was deemed fully qualified by the U.S. Navy. This order is integral to the first option year on our five-year SDC contract.” Mitchell Binder, President and CEO of Orbit International commented, “This award, for our Electronics Group, is one of several orders for legacy hardware that was expected at an earlier date and finally received at the end of the third quarter. We are encouraged that these orders, although delayed, ultimately are awarded as anticipated, which affirms our belief that all our legacy business remains intact. We do expect other orders for legacy business to be received over the next several weeks. Due to continuing budget concerns, the timing of the receipt of expected orders and the corresponding impact to future revenue remains our greatest challenge.”
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. Orbit International Corp., through its Electronics Group, 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. The Power Group, through its Behlman Electronics, Inc. subsidiary, manufactures and sells high quality commercial power units, AC power sources, frequency converters, uninterruptible power supplies and inverters. The Behlman COTS division designs, manufactures and sells highly reliable power units for industrial and military applications.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our 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, Devin Sullivan, 212-836-9608, The Equity Group Inc.