Optex Systems Announces $2.0 Million Order for Laser Filter Units and Window Assemblies

Rhea-AI Summary

Optex Systems Holdings (Nasdaq:OPXS) has secured a new $2.0 million contract for Laser Filter Units and Window Assemblies for Night Vision devices used by the U.S. Armed Forces. The deliveries are scheduled from March 2025 through February 2026. The company's Applied Optics Center (AOC) has enhanced its infrastructure to meet growing demand for specialized laser filters and coated optics. Following this new order, Optex's current backlog exceeds $42 million.

Positive

• Secured new $2.0 million military contract
• Strong backlog position exceeding $42 million
• Infrastructure expansion to meet growing demand
• Established position as key supplier to U.S. military

Negative

• None.

Insights

Financial Analyst

The $2.0 million contract win strengthens Optex Systems' already robust backlog, which now exceeds $42 million. For a company with a market cap of $55.4 million, this represents significant revenue visibility. The 12-month delivery schedule starting March 2025 indicates steady revenue recognition. The contract highlights OPXS's strategic positioning in the military supply chain, particularly in night vision technology. The recent infrastructure investments to handle increased demand for specialized laser filters shows proactive capacity management. This contract win, while modest in size, reinforces the company's market position and suggests potential for future orders in this growing segment.

Defense Industry Analyst

The contract for Laser Filter Units and Window Assemblies demonstrates OPXS's important role in the U.S. military's night vision capabilities. The company's status as a key supplier of laser protection filters indicates strong barriers to entry and established relationships with prime contractors. The recent infrastructure expansion suggests management's confidence in future demand growth for specialized optical components. Night vision technology remains a critical battlefield advantage and ongoing military modernization efforts should sustain demand. The contract's timing aligns with broader defense spending patterns and reinforces OPXS's competitive position in this specialized market.

RICHARDSON, TX / ACCESSWIRE / December 10, 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 for Laser Filter Units and Window Assemblies supporting Night Vision devices utilized by the U.S. Armed Forces. The order value is $2.0 million with deliveries covering March 2025 through February 2026.

"The AOC team is pleased to continue our support of optical assemblies supporting various Night Vision Devices. AOC has positioned itself as a key supplier of laser protection filters and assemblies supporting the primary suppliers of Night Vision equipment to the U.S. military. We have recently added critical infrastructure to ensure we can continue to meet the growing demand for specialized laser filters and other coated optics" stated Bill Bates, General Manager of Applied Optics Center. With this new order, the current Optex backlog is in excess of $42million.

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 value of Optex Systems' (OPXS) new contract for Laser Filter Units?

Optex Systems (OPXS) has been awarded a $2.0 million contract for Laser Filter Units and Window Assemblies.

When will Optex Systems (OPXS) deliver the Laser Filter Units from the new contract?

Deliveries are scheduled from March 2025 through February 2026.

What is Optex Systems' (OPXS) current backlog value after the new order?

After the new order, Optex Systems' current backlog exceeds $42 million.

Who is the end customer for Optex Systems' (OPXS) new Laser Filter Units contract?

The U.S. Armed Forces are the end customer for the Night Vision devices using these Laser Filter Units.