Optex Systems Announces $2.1 Million Order for Laser Protected Periscopes

Rhea-AI Summary

Optex Systems Holdings, Inc. (Nasdaq:OPXS), a leading manufacturer of precision optical sighting systems, has announced $2.1 million in new contracts from two domestic customers for laser protected periscopes. These periscopes will support ongoing armored vehicle production, providing real-time situational awareness while protecting against harmful laser strikes.

The deliveries are expected to occur over the next 18 months. CEO Danny Schoening emphasized Optex's continued support for domestic armored vehicle manufacturers. With this new order, Optex's current backlog now exceeds $45 million.

Positive

• Secured new contracts worth $2.1 million
• Current backlog exceeds $45 million
• Deliveries expected over the next 18 months, indicating steady revenue stream

Negative

• None.

Insights

Financial Analyst

This $2.1 million order for laser protected periscopes is a positive development for Optex Systems. The contract value represents approximately 4% of the company's market cap, which is significant for a small-cap company. More importantly, it contributes to a robust backlog of over $45 million, providing revenue visibility for the coming quarters.

The 18-month delivery timeline suggests a steady revenue stream, which could help in maintaining consistent financial performance. For a company with a market cap of about $52.7 million, having a backlog nearly equal to its market value is a strong indicator of business stability and growth potential.

Investors should note that this order reinforces Optex's position in the defense sector, particularly in armored vehicle optics. The mention of two domestic customers hints at a diversified client base, which is favorable for risk mitigation. However, it's important to monitor the company's ability to convert this backlog into revenue efficiently and maintain profitability amidst potential supply chain or production challenges.

Defense Industry Specialist

The award of contracts for laser protected periscopes underscores the ongoing modernization efforts in armored vehicle fleets. These advanced optics are important for enhancing soldier survivability and operational effectiveness in modern warfare scenarios where laser-based weapons and targeting systems are increasingly common.

Optex's ability to secure orders from multiple domestic customers suggests a strong market position and product competitiveness. The emphasis on "real-time situational awareness" and protection from "harmful laser strikes" aligns with current military priorities for force protection and tactical advantage.

The $45 million backlog is particularly noteworthy for a company of Optex's size. It indicates sustained demand for their products and potentially reflects broader trends in defense spending, especially in ground vehicle modernization programs. Investors should watch for any announcements of follow-on orders or expansion into new vehicle platforms, which could signal further growth opportunities in the defense sector.

RICHARDSON, TX / ACCESSWIRE / September 23, 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 contracts from two domestic customers in support of ongoing armored vehicle production. The total value is $2.1 million with expected deliveries over the next 18 months.

Danny Schoening, CEO, Optex Systems stated "Optex continues to support our domestic armored vehicle manufactures through the ongoing supply of laser protected periscopes. These units provide our customers with real-time situational awareness while protecting them from harmful laser strikes."

With this order, the current Optex backlog is in excess of $45 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 value of Optex Systems' new order for laser protected periscopes?

Optex Systems (OPXS) has been awarded contracts totaling $2.1 million for laser protected periscopes.

Who are the customers for Optex Systems' new $2.1 million order?

The $2.1 million order is from two domestic customers supporting ongoing armored vehicle production.

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

With the new $2.1 million order, Optex Systems' current backlog exceeds $45 million.

When are the deliveries expected for Optex Systems' new $2.1 million order?

Deliveries for the $2.1 million order are expected over the next 18 months.