Orbit International Corp. Announces Forgiveness of Its PPP Loan

Rhea-AI Summary

Orbit International Corp. (OTC PINK:ORBT) announced the approval of its $1,606,000 PPP loan forgiveness application by the Small Business Administration. CEO Mitchell Binder emphasized the ongoing challenges posed by the pandemic, impacting employee productivity and revenue. Despite these hurdles, the PPP loan helped maintain full employee employment. Orbit, classified as an essential business, continues to operate and support national security requirements. The company develops custom electronic solutions for various sectors and remains committed to navigating the pandemic's uncertainties while following CDC guidelines.

Positive

• Successful approval of $1,606,000 PPP loan forgiveness, providing financial relief.
• Maintained full employment during the pandemic, supporting workforce stability.

Negative

• Ongoing impacts from the pandemic have reduced productivity and revenue.
• Bookings and revenue in certain business areas have been negatively affected.

HAUPPAUGE, N.Y., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its application for forgiveness of its $1,606,000 loan from People’s United Bank under the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”), has been approved by the Small Business Administration.

Mitchell Binder, President and CEO of Orbit International commented, “We are still dealing with the latest wave of the severe consequences of this pandemic. As previously mentioned, we made several changes throughout our organization to deal with the health and safety of our employees and productivity has suffered as a result.  In addition, bookings and revenue for certain areas of our business have also been negatively impacted. Despite these challenges, the PPP Loan enabled us to preserve our workforce with full employment during this entire period and mitigate the adverse financial impact resulting from the inefficiencies created by the pandemic.”

Orbit International Corp., through its Electronics Group including its new Q-Vio subsidiary, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Company was classified as an essential business by New York State and therefore was exempt from the state’s mandate that all non-essential businesses close their business locations until further notice. In addition, as a member of the Defense Industrial Base (“DIB”), the Company is mandated by the Secretary of Defense to continue to provide the essential products and services required to meet national security commitments to the Federal Government and the U.S. Military. The Company remains open while following guidance from the Centers for Disease Control (“CDC”) to best protect our employees. At this time, the length and severity of the COVID-19 pandemic is still unknown.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

CONTACT                        
David Goldman                
Chief Financial Officer                
631-435-8300

FAQ

What is the significance of Orbit International's PPP loan forgiveness approval?

The approval of Orbit International Corp.'s $1,606,000 PPP loan forgiveness is significant as it provides financial relief, allowing the company to preserve its workforce during the pandemic.

How has the COVID-19 pandemic affected Orbit International's business?

The COVID-19 pandemic has negatively impacted productivity and revenue at Orbit International, leading to reduced bookings in certain business areas.

What does Orbit International specialize in?

Orbit International Corp. specializes in the development and manufacture of custom electronic device and subsystem solutions for military, industrial, and commercial applications.

Is Orbit International classified as an essential business?

Yes, Orbit International is classified as an essential business by New York State, allowing it to continue operations during the pandemic.

How has Orbit International responded to the pandemic's challenges?

Orbit International has made several organizational changes to address health and safety concerns, although productivity and revenue have suffered as a result.