Orbit International’s Electronics Group Receives New Order in Excess of $1,200,000

Rhea-AI Summary

Orbit International Corp. (OTC PINK:ORBT) announced a new order exceeding $1,200,000 from a major defense contractor for the U.S. Navy, with deliveries set for late 2023 through mid-2024. The company anticipates three follow-on proposals totaling over $3,500,000 for 2023 to 2025, though these may vary based on U.S. Navy requirements. Despite the new order, Orbit is facing delays in key contract awards due to pandemic-related work restrictions and funding issues from the Department of Defense. The company emphasizes that contract timing remains uncertain.

Positive

• New order exceeding $1,200,000 from a major defense contractor for the U.S. Navy.
• Potential follow-on orders could total over $3,500,000 from 2023 to 2025.

Negative

• Delays in contract awards due to pandemic-related restrictions and funding issues from the Department of Defense.
• Uncertainty in timing for contract awards could affect revenue predictions.

Follow-On Orders Expected in 2023-2025

HAUPPAUGE, N.Y., Aug. 11, 2022 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Electronics Group (“OEG”) received a new order in the month of August 2022 in excess of $1,200,000. Deliveries for this order are expected to commence in the fourth quarter of 2023 and continue through the second quarter of 2024.

Mitchell Binder, President and CEO of Orbit International commented, “This new order for our OEG, in excess of $1,200,000, is from a major defense contractor for a significant program for the U.S. Navy.
In addition, the customer has requested proposals for three follow-on orders for each year of 2023-2025 which, if awarded, would total in excess of $3,500,000. However, these potential future awards could be modified subject to the U.S. Navy changing its requirements. Timing of the awards is also an uncertainty.”  

Binder added, “Despite this significant award, our OEG and Orbit Power Group (“OPG”) are experiencing delays in the awards of contracts on key programs. Several factors are causing delays on these awards, which are coming from the Department of Defense (“DoD”), including work restrictions related to the pandemic, a shifting of prioritization of certain contract awards from the DoD and funding issues due to increased prices. It should be noted that timing uncertainty in the receipt of contracts from our prime contractors doing business with the U.S government is an inherent factor in our industry. As in the past, although timing remains an uncertainty, we expect these contract awards to eventually be received.”

Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. 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.

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 recent contract did Orbit International Corp. receive?

Orbit International Corp. received a new order exceeding $1,200,000 from a major defense contractor for the U.S. Navy.

What are the potential future orders for Orbit International Corp.?

Orbit expects three follow-on orders totaling over $3,500,000 for the years 2023-2025, pending U.S. Navy requirements.

What challenges is Orbit International Corp. currently facing?

The company is experiencing delays in contract awards due to pandemic-related restrictions and funding issues from the Department of Defense.

When are deliveries for the new order expected to begin?

Deliveries for the new order are expected to commence in the fourth quarter of 2023.

Why is there uncertainty regarding contract award timings for Orbit International Corp.?

Uncertainty stems from shifting prioritization in the Department of Defense and inherent timing issues in the industry.