Final Purchase Order Expected During Third Quarter 2017
Company Announces Change in Management
HAUPPAUGE, N.Y., March 17, 2017 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Electronics Group has received a letter subcontract from a major prime contractor for approximately $805,000, authorizing it to commence the procurement of material for displays on a major aviation program, while negotiations for the final purchase order are being concluded. The value of the purchase order is expected to exceed $2,200,000 and negotiations should be finalized early in the third quarter of 2017. Deliveries of the completed units are expected to commence in the fourth quarter of 2017 and continue through the fourth quarter of 2018.
Mitchell Binder, President and CEO of Orbit International commented, “The purpose of the letter subcontract is to provide our Company funding in order to begin the procurement process while the final purchase order is being negotiated. This also allows our Electronics Group to meet the initial delivery dates that are expected to take place in the fourth quarter of this year. We expect to enter negotiations shortly and we expect the final purchase order to be received no later than the third quarter of 2017.”
Binder added, “This order is a follow-on award for a major aviation program from a leading prime contractor and continues the series of contract awards recently received by our Electronics Group. Recent awards, from our Electronics Group, at the end of 2016 and early in 2017 have firmed up delivery schedules for the first three quarters of 2017. This award now adds to the delivery of units scheduled for the fourth quarter of 2017. Our Electronics Group is also negotiating with its customers on other significant awards, including a developmental award for a next generation product that we hope to also receive during this quarter, although timing is always an uncertainty.”
The Company also announced that Ken Ice, President of its Electronics Group has decided to leave the Company to pursue another business endeavor in the Louisville, KY area that is unrelated to the defense industry. Mr. Ice will remain on the Company’s Board of Directors but will not seek reelection when his term is up. The Company announced the hiring of Mark Prieto as Senior Vice President of Business Development for the Electronics Group. Mr. Prieto previously served as Managing Director of Financial Services for Microsoft and Channel Sales Director for the Federal Government for Enterprise Servers for Hewlett Packard. Mr. Ice has entered into a consulting agreement with the Company to assist Mr. Prieto with business development and program management while Mr. Prieto becomes acclimated with the Company's customer base. The Company also announced the promotion of Jim Foti to Senior Vice President of Sales and Marketing for the Electronics Group.
Binder concluded, "Ken Ice, along with our operations, engineering and sales teams, were instrumental in the critical turnaround of our Electronics Group that has well positioned it for the future. We wish Mr. Ice well in his future endeavor. We are excited with the addition of Mark Prieto as Senior Vice President and believe he will play a vital role in our continued growth. I am pleased to announce the promotion of Jim Foti to Senior Vice President of Sales and Marketing. Mr. Foti has been instrumental in the dramatic increase in bookings for our Electronics Group."
Orbit International Corp., through its Electronics Group, is involved in the manufacture of customized electronic components and subsystems 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 Newbury Park, CA and a facility in Louisville, KY dedicated to the design and manufacture of gun weapons systems as well as VME/VPX solutions including backplanes, health monitors, air transport racks and components.
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 as well as Orbit’s prior filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, annual reports on Form 10-K and its other periodic reports. 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.
CONTACT Mitchell Binder President & Chief Executive Officer 631-435-8300
