PRODUCTION ORDERS NOW TOTAL APPROXIMATELY $16,000,000 AGAINST $21,709,300 IDIQ CONTRACT RECEIVED IN SEPTEMBER 2017
Hauppauge, New York, November 21, 2017 — Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Power Group (OPG), through its Behlman Electronics, Inc. subsidiary, has been awarded an approximately $4,400,000 follow-on purchase order for the production and delivery of 37 Common Aircraft Armament Test Sets (CAATS) for the U.S. Navy. Deliveries under this purchase order are expected to commence in the third quarter of 2019 and continue through the first quarter of 2020.
This follow-on award is the second production order received under a $21,709,300 fixed price indefinite delivery/indefinite quantity (IDIQ) contract received by the Company in September 2017. The remainder of the orders against the IDIQ is expected to be received in the third quarter of 2018 and may include foreign military sales. All deliveries are expected to be completed in September 2020.
Mitchell Binder, President and CEO of Orbit International commented, “The IDIQ contract received in September 2017, the largest ever received by our Power Group, was awarded as a small business set aside and represents a great accomplishment by our OPG team. This follow-on award brings the total production awards under the IDIQ contract to approximately $16,000,000. As previously stated, the shipment and delivery of these units will require many aspects of production and testing to be offloaded to subcontractors and, as a result, our expected gross margins for this contract will be considerably lower than our historical margins. However, no additional engineering, selling and administrative personnel will be needed; therefore, this contract should have a positive impact on profitability during the delivery period.”
Binder added, “This follow-on award continues to build our backlog and forms a solid foundation of business for our Power Group for approximately the next three years. We hope to build on this solid foundation by continuing to receive pre-production awards for our new VPX technology and our COTS power solutions as well as by pursuing the many other new opportunities that are being added to our bid pipeline. Our Electronics Group is completing negotiations on several follow-on opportunities, which should result in firm contracts by year-end. Consequently, we are extremely optimistic that we will complete 2017 with a solid fourth quarter of bookings and year-end backlog.”
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 facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, uninterruptible power supplies, VME/VPX power supplies as well as various COTS power sources. The Company also has a sales office in Thousand Oaks, CA and a facility in Louisville, KY dedicated to the design and manufacture of gun weapons systems.
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 reports posted with the OTC Disclosure and News service as well as Orbit’s prior 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.