Orbit International's Electronics Group Receives Letter Contract to Commence Procurement on Purchase Order Expected to Exceed $825,000
Final Purchase Order Expected By End of Third Quarter 2016
Hauppauge, New York, August 3, 2016 -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Electronics Group has received a letter contract from a major prime contractor for approximately $700,000, authorizing it to commence the procurement of material, while negotiations for the final purchase order are being concluded. The value of the purchase order is expected to exceed $825,000 and negotiations should be completed no later than the end of the third quarter. Deliveries of the completed units are expected to commence in the fourth quarter of 2016 and continue through the third quarter of 2018.
Mitchell Binder, President and CEO of Orbit International commented, “This is the second such letter contract we have received in the last two months. The purpose of the letter contract is to provide our Company the 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 delivery dates expected to be included in the final purchase order.”
Binder added, “The previous letter contract, received in June 2016, was for a follow-on order for our switch panels with an estimated value that is expected to exceed $1,000,000. We have commenced negotiations on that contract with our customer and we expect to finalize a purchase order by the end of this month. This current letter contract, for one of our display products, is expected to be finalized as a purchase order by the end of this quarter for a value in excess of $825,000. This current letter contract further elevates the increased level of bookings that our Electronics Group has recorded since the beginning of the year and will enhance our delivery schedules for the end of 2016 and into 2017.”
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.
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