Orbit International Corp. to deliver $2.9 million in remote-control units to U.S. Army and Navy Common Transponder program
HAUPPAUGE, N.Y., 17 June 2007. The Electronics Group of Orbit International Corp., an electronics manufacturer and software solution provider, has received a $2.9 million order as part of a long-term agreement (LTA) to support the Common Transponder program.
Under the revised LTA announced in May 2007, Orbit's customer increased the quantities of its remote-control units from 500 to 1000 units to support both U.S. Navy and U.S. Army program requirements through December 2009. Deliveries under this latest contract are expected to commence in the fourth quarter of 2007 and continue through the second quarter of 2008.
Orbit has been supplying RCUs to this customer, a leading defense electronics and aerospace company, for several years under three successive LTAs. Since the total value of the revised LTA is in excess of $5,900,000, an additional $1 million order for the remaining quantities is expected by December 2008. The Company expects funding for this requirement to be released on a timely basis so that production will not be interrupted. With today's award, there remain only 168 units yet to be ordered; therefore the customer has asked Orbit to provide Indefinite Delivery/Indefinite Quantity (IDIQ) pricing to cover significant additional RCU units once the current LTA expires.
Dennis Sunshine, President and Chief Executive Officer of Orbit International, commented, "The timeframe in which our customer has placed orders under this latest LTA has exceeded our expectations as only a total of 168 units remain to be released. Furthermore, we are working closely with our customer and it appears that there will be steady and significant requirements for Common Transponder Program hardware that incorporates our RCU unit. Since there are a number of new program opportunities that include our RCU unit, together with the 2700 RCU units that may ultimately require some refurbishment after extended use in field operations, our customer has requested IDIQ pricing to cover potentially significant additional quantities of RCUs to support program requirements through 2010."
Sunshine continued, "With this order and others announced in recent months, our backlog has continued to grow supporting our expectations for a strong second half of 2007."
