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Orbit International’s Power Group Announces Receipt of Follow-On Purchase Order in Excess of $2,000,000 for Production of Common Aircraft Armament Test Sets
Orbit International’s Power Group Announces Receipt of Follow-On Purchase Order in Excess of $2,000,000 for Production of Common Aircraft Armament Test Sets.
About this update from Orbit International Corp.
[{"type":"text","content":"\n 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...