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Orbit International's Power Units Segment Receives Development Orders in Support of F-16 Program Totaling $340,000; Follow on Orders Could Add $400K to $750K Annually
Business Wire, Sept 7, 2006
HAUPPAUGE, N.Y. -- Orbit International Corp. (NASDAQ:ORBT), an electronics manufacturer and supplier, today announced that its Power Units Segment, Behlman Electronics, Inc. ("Behlman") has received two new development orders in support of the F-16 program totaling $340,000. Deliveries under these contracts are expected to commence in the first quarter of 2007 and continue through the fourth quarter of 2007.
The first order is for the development of a power supply used in the F-16 Field Transportable Improved Avionics Intermediate Shop (IAIS) system which is used to test all the avionic units on the F-16. Behlman was chosen to develop a replacement for the existing power source which had become both a reliability and supportability issue for the U.S. Air Force. Based on current forecasts, approximately five (5) to seven (7) new systems are expected to be built per year over the next five (5) to ten (10) years which equates to approximately $100,000 to $150,000 per year. These amounts do not include additional units that may be procured to support systems already in the field.
The second order is for a COTS replacement unit used in the F-16 Expanded Enhanced Fire Control Computer (EEFCC). The current power supply had been the cause of unacceptable support problems for the U.S. Air Force and Behlman was chosen to build a new COTS replacement, perform qualification testing and prepare logistical support documentation. Behlman had previously built two units which have successfully passed initial system testing. Once the remaining tests are completed, management anticipates that fifty (50) to one hundred (100) units will be procured per year in the foreseeable future equaling approximately $300,000 to $600,000 per year.
Dennis Sunshine, President and Chief Executive Officer of Orbit International Corp., commented, "We are pleased to receive these two new development orders in support of the F-16 program as it further expands our presence on U.S. Air Force programs in addition to our presence on numerous key programs for the U.S. Navy. This is part of Behlman's business plan of leveraging its standard products to pursue programs with custom power requirements which has been a key element of its revenue and earnings growth over the past several years. We remain confident that we can continue to provide COTS solutions for the U.S. military that will lead to continued business in the coming years."
Orbit International Corp. 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. 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 military division designs, manufactures and sells power units and electronic products for measurement and display. For a more detailed discussion of the risks inherent in the Company's business, the reader is referred to the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 and its registration statement on Form S-3 containing a final prospectus dated January 11, 2006.
This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding expected deliveries under new contracts, the estimated number and dollar amounts of follow on orders for each of the new development orders and the Company continuing to provide COTS solutions for the U.S. military that will lead to continued business in the coming years. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual future results of the Company to be materially different from such forward looking statements. Factors that might result in such differences include, without limitation, current economic conditions and military conflicts, variable market conditions, the timing of execution and delivery under new and existing contracts, and changing needs of the defense sector and the Company's customers. The forward-looking statements contained in this press release speak only as of the date hereof. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
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