Orbit International Corp. (NASDAQ:ORBT) today announced that its Electronics Group, through its Tulip Development Labs subsidiary ("TDL"), has been selected to develop prototype displays for three major aircraft programs: KC-135 military aircraft, the P-3 Orion aircraft, and the F-16 fighter jet. In connection with the F-16 prototype award valued at $65,000, TDL was also awarded an initial production order valued at approximately $344,000. Details are as follows:
- A leading defense contractor has selected TDL to produce a prototype and qualification display for use on the F-16 aircraft, a multi-role jet fighter aircraft. To meet this customer's accelerated requirements, TDL plans to deliver this display prototype before 2011 year-end. Once the prototype, for which TDL will be paid $65,000, meets qualification testing, TDL will begin production, as shipments of this order valued at approximately $344,000 are scheduled for the second quarter in 2012. Additional production orders are expected in 2012 with same year delivery.
- TDL received a prototype order for a 15 inch portrait display unit from a new customer for use on the KC-135 military aircraft. Delivery of this prototype is expected before 2011 year-end and, once qualification testing is completed, TDL anticipates production orders to follow. Although the timing and the magnitude of production quantities are uncertain, the production orders for this display could be substantial, as the fleet of more than 400 KC-135 aircraft has been in active duty for more than 50 years.
- The New Zealand Ministry of Defense has ordered a prototype display used on the P-3 Orion, a land-based maritime patrol aircraft. Following the delivery of this prototype and its qualification testing, this customer has indicated that it plans to place an initial production order valued at approximately $200,000 in 2012. Of note, TDL developed and produced the previous generation of P-3 Orion display for this customer.
Mitchell Binder, President and CEO of Orbit International commented, "Prototype and qualification orders are historically the foundation of our organic growth as they generally lead to initial production and follow-on orders and recurring revenues. We value both new customers, as is the case on the KC-135 aircraft, and legacy programs, like the P-3 Orion, where we are selected for system advances and upgrades. With respect the F-16, we expect several follow-on orders for this program, which should provide a good foundation of business for several years to come."
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