HAUPPAUGE, N.Y., Sept. 18, 2019 (GLOBE NEWSWIRE) —
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 follow-on purchase order in excess of $2,000,000 for the
production and delivery of 11 Common Aircraft Armament Test Sets (CAATS)
for the U.S. Navy. Deliveries under this purchase order are expected in
the fourth quarter of 2020.
This follow-on award is the fourth and final production order received under a $21,709,300 fixed price indefinite delivery/indefinite quantity (IDIQ) contract received by the Company in September 2017.
In addition, the Company also announced that its Orbit Electronics Group (OEG) demonstrated three Semi-Rugged, High-Resolution Display Devices at the DSEI Show in London, UK, during the week of September 9, 2019. These displays featured LED backlighting, very wide viewing angles, high contrast ratios, fast response times and outstanding color gamut. The Company plans on demonstrating these same displays at three more trade shows through the end of the year including the AUSA Show in Washington, DC from October 14-16, 2019.
Mitchell Binder, President and CEO of Orbit International commented, “The IDIQ contract, the largest ever received by our Power Group, was received in September 2017 as a small business set aside naming Behlman as prime contractor. This follow-on award completes the production awards under the IDIQ contract. As previously stated, the shipment and delivery of these units require many aspects of production and testing to be offloaded to subcontractors and, as a result, our gross margins for the contract and this award are considerably lower than our historical margins. However, no additional engineering, selling and administrative personnel are needed; therefore, this award should have a positive impact on profitability during the delivery period.”
Binder added, “Our OPG is currently bidding for additional CAATS power supplies in our original role as a subcontractor to the original prime contractor on this program. If awarded, although our sales levels will be lower as a subcontractor than as a prime contractor, we will be return to the higher margins that we typically realize on our other production work. This follow-on award is a firm addition to our backlog and forms a solid foundation of business for our Power Group through the end of 2020. In addition to this award, our OPG is continuing to expand its bid pipeline utilizing its VPX technology. Bookings for VPX power supplies through the end of August 2019 were approximately 31% higher than at the end of the comparable period and we expect bookings for this product line to continue to grow through the end of the year.”
Binder concluded, “The new semi-rugged displays that were demonstrated at the DSEI show in London, UK featured the hi-brite technology of our newly acquired Q-Vio Corp subsidiary. These displays were a result of the combined talent and teamwork of our Orbit Instrument/TDL and Q-Vio engineers and sales teams and were well received by visitors to Orbit’s booth with very positive feedback.”
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions 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 Bradenton, FL.
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. 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.
Chief Financial Officer