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 $2,465,000 for its MK 119 Gun Computer System Cabinet (GCSC) and MK 437 Gun Mount Control Panels (GMCP). These 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 first quarter of 2011 and continue through the third quarter of 2011.
The MK 119 GCSC is an unmanned, environmentally-isolated shipboard enclosure that houses a standard 19" electronics rack containing processors, electronic devices, cooling and power conditioning equipment that perform 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. The MK 437 GMCP includes custom fabricated enclosures; Commercial-Off-The-Shelf (COTS) and Non-Developmental Items (NDI) components, which are also designed to meet critical operational functionality for U.S. Navy and foreign government requirements.
Both the MK 119 GCSC and the MK 437 GMCP are used on all AEGIS Cruisers and Destroyers, and are operationally integrated with the 5"/54 MK 45 Gun Mount systems.
Ken Ice, President and Chief Operating Officer of ICS commented, "We are delighted to announce these latest orders placed against our IDIQ contracts. In addition to these awards, we have been informed by our customer that we may expect additional contract awards for the MK 437 Gun Mount during the current fourth quarter which could exceed $1,000,000. We are confident that the ICS business model for growth of custom systems integration combined with logistics support will continue to lead ICS to new business opportunities within our niche marketplace."
Dennis Sunshine, Orbit's President and Chief Executive Officer commented, "Although these contract awards were received by ICS at the end of the third quarter, ICS commenced the procurement process as well as the labor effort for the MK 119 in the second quarter of 2010. As a result, ICS will be recording revenue in our third quarter under this new MK 119 award since this contract is accounted for under the percentage of completion method."
Sunshine concluded, "These critical multi-year U.S. Navy programs are designed and funded to upgrade and modernize the U.S. Navy fleet, together with a number of foreign countries that have procured AEGIS Cruiser and Destroyer Combat System for their naval fleet requirements. ICS continues to be an integral part of this modernization effort and is currently bidding on new programs that should enhance its reputation as a reliable supplier of gun weapon system products."
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