Giga-tronics Receives Second $783,000 Order for Electronic Warfare Threat Emulation System

Rhea-AI Summary

Giga-tronics Incorporated (OTCQB: GIGA) has announced a second order worth $783,000 for its RADAR/EW Threat Emulation System from the U.S. Department of Defense. This order is part of a multi-year task order under a $28 billion contract, supporting the F-35 program. The Executive Vice President highlighted growing interest in their systems, indicating potential for increased contract activity. Shipment timing will depend on the U.S. Air Force program, anticipated later this year.

Positive

• Secured a second order worth $783,000 for RADAR/EW Threat Emulation System.
• The order is part of a multi-year task order under a $28 billion DoD contract.
• Growing interest from military organizations could lead to increased contracts.

Negative

• Shipment timing is uncertain and relies on the U.S. Air Force program.
• The success of future orders is contingent on various market and operational risks.

Second Order placed through new multi-year task order under an existing $28 billion Department of Defense contract vehicle

DUBLIN, Calif., Aug. 10, 2022 (GLOBE NEWSWIRE) -- (OTCQB: GIGA) Giga-tronics Incorporated (the “Company”), a producer of functional test solutions for the RADAR/Electronic Warfare (“Radar/EW”) segment of the defense electronics market, today announced that it has received a second order valued at $783,000 for the Company’s RADAR/EW Threat Emulation System (“TEmS”) from the United States (“U.S.”) Department of Defense (“DoD”). The Company’s technology will play a critical role in the development, testing and fielding of a new advanced weapon system for the U.S. Air Force F-35 program. The order was placed through a new multi-year task order under a $28 billion DoD contract vehicle.

Lutz Henckels, Executive Vice President, Chief Financial Officer and Chief Operating Officer stated, “This is the second order for our RADAR/EW TEmS solution and was made through a new task order under the $28 billion DoD contract vehicle. This high visibility program has gained the attention of other programs and military organizations that need more flexible, reprogrammable and cost-effective threat emulation systems. We are on our way to establishing a more consistent cadence of contract award activity for the DoD and look forward to capitalizing on the broader market interest for our advanced TEmS solutions. The timing of the shipment of the order is dependent on the U.S. Air Force program and is expected to be later this calendar year.”

About Giga-tronics Incorporated

Giga-tronics is a publicly held company, traded on the OTCQB Capital Market under the symbol "GIGA". Giga-tronics produces RADAR filters and Microwave integrated components for use in military defense applications as well as sophisticated RADAR/EW test products primarily used in electronic warfare test and emulation applications.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “expects” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “should" or “will” occur. Forward-looking statements include, among others, those concerning future product developments, future prospects, future operating results (including, for example, future revenue, growth, expenses, margin and profitability), growth in market share, product competitiveness and expected and potential sales to customers. Forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include the Company’s ability to successfully manufacture its RADAR/EW test products; to identify customer needs and to design and implement new features; the timely receipt of components from third-party suppliers; the receipt or timing of future orders for products or services and cancellations or deferrals of existing or future orders; the adequacy of the Company’s capital resources; the Company’s ability to manage expenses; the results of pending or threatened litigation; the Company’s ability to successfully implement its business plan; the Company’s need to modify its business plan as a result of these or other risks; the volatility in the market price of the Company’s common stock; and the circumstances relating to the COVID-19 pandemic and governmental responses. You should not place undue reliance on any forward-looking statements, which are made as of the date of this press release. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements. For further discussion, see the Company’s most recent annual report on Form 10-K for the fiscal year ended March 26, 2022, Part I, under the heading "Risk Factors" and Part II, under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" and those in other public filings the Company may make with the Security and Exchange Commission.

FAQ

What is the latest order received by Giga-tronics?

Giga-tronics received a second order valued at $783,000 for its RADAR/EW Threat Emulation System.

What is the contract value related to the new task order for Giga-tronics?

The new task order is part of a $28 billion Department of Defense contract vehicle.

How does the new order impact Giga-tronics' business?

The new order enhances Giga-tronics' position in the defense electronics market, with potential for more contracts due to increased interest.

When is Giga-tronics expecting to ship the new order?

The shipment timing for the new order is expected later this calendar year, depending on the U.S. Air Force program.