BK Technologies Announces Amendment to Contract Awarded by Agency of the U.S. Department of Energy; Contract Ceiling Raised to $7 Million
BK Technologies Corporation (NYSE American: BKTI) has announced an amendment to its contract with a U.S. Department of Energy agency, increasing the contract ceiling from $4.2 million to $7 million. The revised one-year contract, effective from June 2021 and expiring in June 2022, allows for the provision of KNG2 and KNG Digital P-25 radios across over 35 sites in the U.S. This amendment reflects the agency's confidence in BK's technology, following BK's initial selection as a sole-source provider due to performance and pricing evaluations.
- Contract ceiling increased from $4.2 million to $7 million, indicating business growth potential.
- Continued supply of KNG-series radios supports operations across over 35 U.S. sites, enhancing revenue stability.
- Demonstrated reliability and durability of products enhances BK's reputation with government agencies.
- Specific delivery dates and quantities are not provided, which adds uncertainty to revenue projections.
- Dependence on government contracts poses risks amidst potential budget cuts and spending limitations.
WEST MELBOURNE, FL / ACCESSWIRE / February 3, 2022 / BK Technologies Corporation (NYSE American:BKTI) today announced that its original contract with an electric utility agency of the U.S. Department of Energy (DoE), signed in August 2020, has been amended to increase its ceiling from
The amended one-year contract was effective as of June 2021 and expires in June 2022, providing for purchases of equipment up to
BK President Tim Vitou commented, "We believe this amendment is a reflection of the reliability and durability of our portable communications technology and our success supporting an agency of the DoE. In 2020, BK was initially selected as a sole-source for this contract, following a competitive process that evaluated performance, functionality and price. We're pleased to have earned this extension, which demonstrates the confidence this agency has in our products and services, and we look forward to continuing to provide our equipment in support of their important operations."
About BK Technologies
BK Technologies Corporation manufactures high-specification, American-made communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies is honored to serve these heroes with reliable equipment when every moment counts. The Company's common stock trades on the NYSE American market under the symbol "BKTI". Maintaining its headquarters in West Melbourne, Florida, BK Technologies can be contacted through its web site at www.bktechnologies.com or directly at 1-800-821-2900.
Forward-Looking Statements
This press release contains certain forward-looking statements that are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company's operations, economic performance, and financial condition, including, but not limited to, statements regarding the Company's long-term strategic plan, and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors and risks, some of which have been, and may further be, exacerbated by the COVID-19 pandemic, include, among others, the following: changes or advances in technology; the success of our land mobile radio product line; disruption in the global supply chain creating delays, unavailability and adverse conditions; successful introduction of new products and technologies, including our ability to successfully develop and sell our anticipated new multiband product and other related products in the planned new BKR Series product line; competition in the land mobile radio industry; general economic and business conditions, including federal, state and local government budget deficits and spending limitations, any impact from a prolonged shutdown of the U.S. Government, and the ongoing effects of the COVID-19 pandemic; the availability, terms and deployment of capital; reliance on contract manufacturers and suppliers; risks associated with fixed-price contracts; heavy reliance on sales to agencies of the U.S. Government and our ability to comply with the requirements of contracts, laws and regulations related to such sales; allocations by government agencies among multiple approved suppliers under existing agreements; our ability to comply with U.S. tax laws and utilize deferred tax assets; our ability to attract and retain executive officers, skilled workers and key personnel; our ability to manage our growth; our ability to identify potential candidates for, and to consummate, acquisition, disposition or investment transactions, and risks incumbent to being a noncontrolling interest stockholder in a corporation; impact of the COVID-19 pandemic on the companies in which the Company holds investments; impact of our capital allocation strategy; risks related to maintaining our brand and reputation; impact of government regulation; impact of rising health care costs; our business with manufacturers located in other countries, including changes in the U.S. Government and foreign governments' trade and tariff policies, as well as any further impact resulting from the COVID-19 pandemic; our inventory and debt levels; protection of our intellectual property rights; fluctuation in our operating results and stock price; acts of war or terrorism, natural disasters and other catastrophic events, such as the COVID-19 pandemic; any infringement claims; data security breaches, cyber-attacks and other factors impacting our technology systems; availability of adequate insurance coverage; maintenance of our NYSE American listing; risks related to being a holding company; and the effect on our stock price and ability to raise equity capital of future sales of shares of our common stock. Certain of these factors and risks, as well as other risks and uncertainties, are stated in more detail in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in the Company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Company Contact:
IMS Investor Relations
John Nesbett/Jennifer Belodeau
bktechnologies@imsinvestorrelations.com
(203) 972-9200
SOURCE: BK Technologies Corporation
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FAQ
What is the current contract ceiling for BK Technologies with the U.S. Department of Energy?
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What products is BK Technologies supplying under the U.S. Department of Energy contract?
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