Optex Systems Announces $1.5 Million Order for Optical Assemblies Supporting an Enhanced Night Vision Goggle Binocular Program

Rhea-AI Summary

Optex Systems Holdings, Inc. (NASDAQ:OPXS) has secured a $1.5 million contract from a U.S. Government Prime Contractor to support a Night Vision Goggle system, with deliveries scheduled throughout fiscal 2025. The company's Applied Optics Center, a primary supplier for laser interference filters and protective window assemblies, is set to benefit from this award, adding to their existing backlog of over $43.5 million.

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• Optex Systems Holdings, Inc. secures a $1.5 million contract from a U.S. Government Prime Contractor to support a Night Vision Goggle system, contributing to the company's backlog of over $43.5 million.

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Insights

Defense Industry Analyst

Optex Systems' recent $1.5 million order for optical assemblies is a firm testament to their ongoing relationship with U.S. Government defense contracts. This sizeable order is a clear indicator of the company's robust standing in the precision optical sighting systems market. What stands out is the contribution of this order to Optex's current backlog, which now exceeds $43.5 million. This backlog acts as a pipeline for future revenue, instilling a level of predictability and stability in Optex's financial outlook.

Financial Analyst

From a financial perspective, the $1.5 million order might have a moderate impact on Optex Systems' revenue stream, especially considering the company's market capitalization and average revenues. The importance of this order lies not only in its immediate financial contribution but also in the signal it sends to investors about the company's competence in securing repeated government contracts. It's critical to understand that government contracts often come with stringent requirements and a rigorous selection process and Optex's ability to meet these standards could bode well for long-term sustainability and potential growth.

Manufacturing & Supply Chain Expert

In the manufacturing sector, particularly within the defense industry, sustaining an active and busy production line is pivotal. This new order ensures that Optex Systems will keep its personnel and equipment engaged through most of fiscal 2025, which is essential for maintaining operational efficiency and workforce stability. Maintaining a steady flow of orders is vital for controlling costs and maximizing the utilization of manufacturing resources. The fact that Optex Systems is a primary supplier to Prime Contractors highlights their strategic position within the supply chain and the potential for expansion as demand for advanced night vision technologies grows.

RICHARDSON, TX / ACCESSWIRE / May 1, 2024 / Optex Systems Holdings, Inc. (NASDAQ:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announced today it has been awarded a new contract from a U.S. Government Prime Contractor, in support of a Night Vision Goggle system. The order value is $1.5M with deliveries covering most of fiscal 2025.

Bill Bates, GM, Applied Optics Center stated "AOC is the primary supplier to Prime Contractors for laser interference filters and protective window assemblies used on many of the Night Vision Goggle Binocular systems currently being produced for the U.S. Government. This award adds to our growing backlog for units of this type and ensures that our people and equipment will stay busy and continue to produce cost effective optical assemblies for our customers as well as the U.S. Government."

With this order, the current Optex backlog is in excess of $43.5 million.

ABOUT OPTEX SYSTEMS

Optex, which was founded in 1987, is a Richardson, Texas-based ISO 9001:2015 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.

Safe Harbor Statement

This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions.

These forward-looking statements represent our expectations, beliefs, intentions or strategies concerning future events, including, but not limited to, any statements regarding growth strategy; product and development programs; financial performance and financial condition (including revenue, net income, profit margins and working capital); orders and backlog; the estimated value of IDIQ contracts; expected timing of contract deliveries to customers and corresponding revenue recognition; increases in the cost of materials and labor; costs remaining to fulfill contracts; contract loss reserves; labor shortages; follow-on orders; supply chain challenges; the continuation of historical trends; the sufficiency of our cash balances for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations; and the economy in general or the future of the defense industry.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control.

You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.

Contact:

IR@optexsys.com
(972) 764-5718

SOURCE: Optex Systems Holdings, Inc.

View the original press release on accesswire.com

FAQ

What is the recent announcement from Optex Systems Holdings, Inc. (NASDAQ:OPXS)?

Optex Systems Holdings, Inc. has announced a $1.5 million order for optical assemblies in support of a Night Vision Goggle Binocular Program.

Who awarded the new contract to Optex Systems Holdings, Inc. (NASDAQ:OPXS)?

The new contract was awarded by a U.S. Government Prime Contractor.

What is the order value of the contract received by Optex Systems Holdings, Inc. (NASDAQ:OPXS)?

The order value is $1.5 million.

What is the current backlog amount for Optex Systems Holdings, Inc. (NASDAQ:OPXS)?

The current backlog for Optex Systems Holdings, Inc. is in excess of $43.5 million.