Orbit International Corp. Receives $620,000 Contract for Common Transponder Program
biz.yahoo.com
Wednesday May 11, 8:30 am ET
Master Order Agreement with Prime Contractor Includes Requirements For Additional Orders of Approximately $500,000
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 11, 2005--Orbit International Corp., a military defense electronics supplier, today announced it has received an additional order from a leading defense prime contractor totaling approximately $620,000 to procure its Remote Control Units (RCU) in support of the Common Transponder (CXP) program for both U.S. Navy and U.S. Army requirements. Deliveries under this award are expected to commence in the third quarter of 2005 and continue through the end of the year.
Management previously announced that under the terms of a Master Order Agreement with the prime contractor, the Company was authorized to procure material for a total of 800 RCU's that would be released via firm fixed price purchase orders throughout 2004 with a value in excess of $3,600,000. This Master Order Agreement was renegotiated at the end of 2004 to allow for the release of purchase orders through September 30, 2005 under a revised pricing arrangement that increased the value of the total contact to $3,900,000. This order brings the total amount of RCU's under contract to 698 units with 102 units remaining to be procured approximating $500,000.
Bruce Reissman, Chief Operating Officer commented, "The current configuration of the RCU now includes both Mode S, as well as Mode 5 software capabilities. We believe our RCU unit has the capability of replacing all existing Identification Friend or Foe (IFF) hardware with the latest state-of-the-art technology."
Dennis Sunshine, President and Chief Executive Officer added, "The CXP program has generated a significant revenue stream for our Electronics Segment and we are confident that we will continue to receive additional RCU contract awards once the current Master Order Agreement is completed. In addition, this Segment, which now includes our recent acquisition of Tulip Development Laboratory, Inc., continues to pursue several new business and follow-on opportunities. The business from our Power Units Segment also remains strong and we remain very confident that strong operating results will continue in 2005." |
