--Improved Operating Performance Expected for Second Half of 2009
--Additional Releases Against the IDIQ Agreement Anticipated Through 2010
Hauppauge, New York, October 1, 2009 -- Orbit International Corp. (NASDAQ:ORBT), an electronics manufacturer and software solution provider, today announced that its Electronics Group has received several awards released against multi-year Indefinite Delivery/Indefinite Quantity ("IDIQ") agreements from a U.S. Navy Procurement Agency valued in excess of $4,447,000 for its MK 119 Gun Computer System Cabinet (GCSC) and MK 437 Gun Mount Control Panels (GMCP). These most recent awards were received by the Company's Integrated Combat Systems, Inc. ("ICS") subsidiary located in Louisville, Kentucky. Total system deliveries under these contract awards are expected to commence in the fourth quarter of 2009 and continue through the second quarter of 2010.
The MK 119 GCSC is an unmanned, environmentally-isolated shipboard enclosure that houses a standard 19 inch electronics rack containing processors, electronic devices, cooling and power conditioning equipment that performs processing, interfacing and data extraction functions designed to meet the most stringent U.S. Navy operational systems requirements.
The MK 437 GMCP is a significant sub-system component that supports the Naval MK 160 Gun Computer System (GCS). The MK 437 GMCP includes custom fabricated enclosures; Commercial-Off-The-Shelf (COTS) and Non-Developmental Items (NDI) components, which also are designed to meet the most stringent U.S. Navy operational systems requirements.
Both the MK 119 GCSC and the MK 437 GMCP control panels are used on all AEGIS Cruisers and Destroyers, and are operationally integrated with the 5"/54 MK-45 Gun Mount (GM) systems.
Ken Ice, President and Chief Operating Officer of ICS commented, "We are delighted to announce these latest orders placed against the multi-year IDIQ agreements in place for the MK 119 GCSC and MK 437 GMCP requirements. I believe the ICS business model for continued growth of custom systems integration and logistics support complements the Orbit International Corp. business model for expanded business opportunities in the marketplace."
Dennis Sunshine, Orbit's President and Chief Executive Officer commented, "These contract awards for the MK 119 and MK 437 were received by ICS significantly later than initially expected. However, as previously announced, ICS commenced the procurement process as well as the labor effort for the MK 119 in the second quarter of 2009. As a result, these cabinets are well into the work in process ("WIP") cycle and the Company is working diligently to meet projected delivery dates on eight of the cabinets by year-end. These latest releases against the MK 119 and MK 437 multi-year IDIQ contracts validate our expectation of significantly improved operating performance for the third and fourth quarters of 2009, when compared to the first two quarters of the year."
Sunshine concluded, "These critical multi-year U.S. Navy programs are designated and funded to upgrade and modernize the current U.S. Navy fleet. ICS continues to provide an integral part of this modernization program. The ICS capabilities will provide hardware and software solutions that will enhance the U.S. Navy fleet's current relevance in the areas of air dominance, land attack and anti-submarine warfare, and will provide force protection in the littoral warfare mission."
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