August 20, 2020 08:45 ET
| Source: Orbit International Corp.
HAUPPAUGE, N.Y., Aug. 20, 2020 (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 (“Behlman”), received a new order for power supplies valued at approximately $1,790,000 for its COTS division. Deliveries are scheduled to commence in the second quarter of 2021 and continue through the first quarter of 2022.
Mitchell Binder, President and CEO of Orbit International commented, “This award has Behlman returning to its role as a subcontractor for the manufacture of power supplies on an armament test system program. Over the past several years, Behlman served as the prime contractor on this program and received small business set aside awards totaling in excess of $21,000,000. For those awards, the shipment and delivery of those units required many aspects of production and testing to be offloaded to subcontractors and, as a result, gross margins for the contract were considerably lower than our historical margins. For this award, we will return to the higher margins that we typically realize on our other production work.”
Binder added, “This award is the largest award received by our OPG in the current year. Our customer has informed us that this award will be used for foreign military sales and follow-on orders are expected although the timing of these additional awards is an uncertainty. Aside from this award, our OPG COTS division has had a firm year in bookings. Bookings for power supplies utilizing our VPX technology was less than expected in the first half of 2020. However, new awards, some of which had been delayed, have been received since July 1, 2020. Furthermore, we expect many of the awards we had been expecting for this product line to be received throughout the remainder of the year.”
Orbit International Corp., through its Electronics Group including its new Q-Vio subsidiary, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial 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 Bradenton, FL.
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Company was classified as an essential business by New York State and therefore was exempt from the state’s mandate that all non-essential businesses close their business locations until further notice. In addition, as a member of the Defense Industrial Base (“DIB”), the Company is mandated by the Secretary of Defense to continue to provide the essential products and services required to meet national security commitments to the Federal Government and the U.S. Military. The Company remains open while following guidance from the Centers for Disease Control (“CDC”) to best protect our employees. At this time, the length and severity of the COVID-19 pandemic is still unknown.
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. 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.
Chief Financial Officer