Gresham Worldwide’s Subsidiary, Enertec Systems, Wins $20 Million Contract

Rhea-AI Summary

Giga-tronics subsidiary, Enertec Systems, has been chosen to supply bespoke systems to a major strategic customer under a $20 million contract. Enertec received a $5 million advance order and a $1.5 million order for immediate delivery. Delivery against these orders is expected to have a positive impact on Enertec's backlog, revenue, and profitability in the coming years.

Positive

• Enertec received a $5 million advance order and a $1.5 million order for immediate delivery.
• Delivery against these orders is expected to have a positive impact on Enertec's backlog, revenue, and profitability in the coming years.

Negative

• None.

Delivery of Systems to Major Strategic Defense Customer Will Span 3 Years

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Giga-tronics, Inc. dba Gresham Worldwide (OTCQB: GIGA) (“Gresham Worldwide”), a provider of purpose-built electronic technology solutions for defense and other mission critical applications, today announced its subsidiary, Enertec Systems 2001 Ltd. (“Enertec”), has been chosen to supply bespoke systems to a major strategic customer under a contract with a total value of $20 million. Enertec, located in Israel, is a leading provider of innovative test, simulation, calibration, operational, control and monitoring systems that support and enable defense, aerospace and health care applications for over 30 years.

In the first phase of the contract, Enertec received a $5 million advance order to acquire materials and a $1.5 million order for the immediate delivery of systems. Enertec expects to receive subsequent orders for the remainder of the contract before the end of 2023. Performance of these orders will span a three-year period from 2024 to 2026.

To drive that performance, Enertec has initiated an aggressive recruiting effort to hire topflight engineers and technicians on an accelerated basis. Delivery against these orders is expected to have a positive impact on Enertec’s backlog, revenue, and profitability in coming years.

Zvika Avni, Enertec CEO, stated “This order is a testament to Enertec’s unique technologies, high-quality offerings and long-standing relationships with customers. We expect to receive additional large orders to deliver similar bespoke solutions for this customer over the next three years.”

Enertec has a strong track record of delivering purpose-built electronic solutions to satisfy the most demanding customers in the world. Enertec is primed to capitalize on the growing demand for electronic test, control, and operational systems and remain competitive.

Gresham Worldwide Chief Executive Jonathan Read, said, “This new order provides significant validation of our continued investment in Enertec’s business model and growth potential. The Company is well-positioned to execute on this order and subsequent orders to deliver strong, positive results and drive success to our bottom-line for Gresham Worldwide and its investors for years to come. Enertec is one of the largest and most respected defense contractors in Israel and we stand ready to support the country in this time of national emergency.”

About Enertec Systems 2001 Ltd, a Gresham Worldwide Company

Enertec designs, engineers and manufacturers sophisticated multi-purpose electronics solutions for the defense, aerospace, and medical industries. Its solution offerings include customized computer-based automated test equipment, calibration machines, simulators and turnkey solutions designed to perform under demanding conditions and in the harshest environments. Enertec serves Fortune 50 companies, militaries and top-tier defense contractors who support them with platforms in the air, on land and at sea around the world.

About Gresham Worldwide

Gresham Worldwide works through its operating companies in the United States, the United Kingdom and Israel to deliver purpose-built electronic technology solutions that save, protect, and enhance life. Gresham Worldwide focuses on providing turnkey electronic solutions for defense, test and training applications, power electronics and displays, and radio frequency, microwave and n\millimeter wave systems and components. Gresham Worldwide primarily supports the defense and aerospace industry as well as mission-critical applications in medical technology, transportation, telecommunications, and industrial market sectors. www.greshamworldwide.com

Forward-Looking Statements

This press release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the timing of new orders for Enertec’s new $20 million contract and the expected results of that contract on Enertec’s backlog, revenue and profitability, anticipated additional large orders from the same customer, and Enertec’s ability to capitalize on growing demand for its solutions and deliver strong, positive results to Gresham Worldwide investors for years to come. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Such risk and uncertainties include, among other factors:(i) the impact of the outbreak of war in Israel, (ii) political factors that may affect Enertec and its receipt of new orders later this year, (iii) the ongoing geopolitical military conflict (including, the Russian war on Ukraine, tensions with China and Taiwan and unrest in the Middle East) will continue, (iv) the effect of any supply chain turmoil, and inflation, and (v) reductions in defense budgets. There can be no assurance that any of the foregoing assumptions will be accurate. Forward-looking statements speak only as of the date they are made, and Gresham undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect Gresham’s business and financial results are included in Gresham’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, Gresham’s Forms 10-K, 10-Q, and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.greshamworldwide.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231009203039/en/

Gresham Worldwide Contact:

Info@greshamworldwide.com

Source: Gresham Worldwide

FAQ

What is the value of the contract with the major strategic customer?

The contract has a total value of $20 million.

What is the immediate order received by Enertec?

Enertec received a $1.5 million order for the immediate delivery of systems.

What impact is expected on Enertec's backlog, revenue, and profitability?

Delivery against these orders is expected to have a positive impact on Enertec's backlog, revenue, and profitability in the coming years.

What is Enertec's role in the defense industry?

Enertec is one of the largest and most respected defense contractors in Israel.

How long will the delivery of systems span?

The delivery of systems will span a three-year period from 2024 to 2026.