Hauppauge, New York, September 19, 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 a $21,709,300 firm fixed price indefinite delivery/indefinite quantity (IDIQ) contract for the production and delivery of up to 180 Common Aircraft Armament Test Sets (CAATS) and 100 Pure Air Generator Adaptor Sets (PAGS PAS) for the U.S. Navy and foreign military sales. Deliveries are expected to be completed in September 2020.
The Company also announced that shortly after the receipt of the IDIQ, its OPG received the initial purchase order against this contract, for $11,648,070 for the production and delivery of 100 CAATS and 75 PAGS PAS units. Deliveries under this contract are expected to commence in the third quarter of 2018 and continue through the third quarter of 2019. The remainder of the orders against the IDIQ are expected to be received in the third quarter of 2018.
Mitchell Binder, President and CEO of Orbit International commented, “This contract, the largest ever received by our Power Group, was awarded as a small business set aside and represents a great accomplishment by our sales and engineering staffs as well as the senior management of the OPG. 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 incremental profitability during the delivery period.”
Binder added, “This award forms a solid foundation of business for our Power Group for approximately the next three years which we hope to build upon. In particular, we are encouraged by our expanding pre-production awards utilizing our VPX technology and other COTS product opportunities being added to our bid pipeline. Our Electronics Group also continues to uncover new business opportunities and book follow-on orders for major military programs.”
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 Newbury Park, CA and a facility in Louisville, KY dedicated to the design and manufacture of gun weapons systems as well as VME/VPX solutions including backplanes, health monitors, air transport racks and components.
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.
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