Announces Extension of Credit Agreement Through July 1, 2015
Orbit International Corp. (NASDAQ:ORBT) today announced that its Power Group, through its Behlman Electronics subsidiary (“Behlman”), received three new orders with a combined value of over $645,000.
The first order, valued at approximately $234,500, is for a commercial power supply used by a major appliance manufacturer to help improve the accuracy of its product testing and demonstration. For over 20 years, Behlman’s power supply has been used by appliance manufacturers to test the performance of household appliances, such as refrigerators and freezers, clothes washers and dryers, dishwashers, electric ranges and microwave ovens. Deliveries have commenced and should continue through the third quarter of 2013.
The second order, valued at approximately $157,000, is for a special commercial power supply used to deliver AC signaling for a high speed railroad system. Behlman has been supplying this power unit to several customers in the rail transportation industry for over 15 years and this order is part of the latest high speed railroad extension project. Deliveries have commenced and should continue through the fourth quarter of 2013.
The third order, valued at approximately $254,000 is a follow-on order for a COTS power supply used to power the optics on a fire control system for United States Navy ships. Behlman has been supplying these power units for a number of years and anticipates additional awards for these units through 2016. Deliveries are expected to commence in the fourth quarter of 2013 and continue through the first quarter of 2014.
Orbit also announced that it entered into an Amendment to its Credit Agreement with its primary lender whereby the maturity date for the Company’s $6 million committed line of credit was extended to July 1, 2015.
Ron Storm, President of Behlman, commented, “Despite challenging economic conditions, Behlman’s business from its Commercial division remains strong with activity for both new and repeat orders for its products. Behlman continues to work with major OEMs developing power solutions for many commercial and military programs which should continue to provide many years of repeat business.”
Mitchell Binder, President and CEO of Orbit International, commented, “2013 has been a year of strong bookings for the Commercial division at our Power Group. Although bookings for our COTS division and our Electronics Group as a whole are sporadic due to budget uncertainty, our legacy programs remain intact and we have great confidence in the long-term prospects of our business. I am pleased to announce that our primary lender shares our confidence with a two-year extension to our credit agreement. Our strong financial position should enable us to take advantage of new opportunities in our marketplace.”
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 associated analytical equipment. The Behlman COTS division designs, manufactures and sells power units and electronic products for measurement and display.
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, The Equity Group Inc.