Orbit International’s Electronics Group Receives Two Orders Totaling in Excess of $2,350,000

Rhea-AI Summary

Orbit International Corp. (OTC PINK:ORBT) announced two new orders exceeding $2,350,000 from a major defense contractor for displays used in a U.S. Army program. These contracts, the largest ever for its subsidiary Q-Vio, will begin delivery in Q1 2023 and continue through Q4 2023. However, Orbit's Electronics Group faces delays in other contract awards due to pandemic-related work restrictions and prioritization shifts by the Department of Defense. Despite these uncertainties, the company expects to receive pending contracts, though many may be postponed to 2023.

Positive

• Received two significant orders totaling over $2,350,000, marking the largest award for Q-Vio.
• Deliveries for the orders are set to commence in the first quarter of 2023.
• Production will be conducted in Hauppauge, NY, supporting local employment.

Negative

• Experiencing delays in contract awards from the Department of Defense, potentially impacting revenue.
• Contract award delays attributed to pandemic restrictions and shifts in funding priorities.

HAUPPAUGE, N.Y., Oct. 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 two new orders, both from the same customer, during the first week of October 2022, totaling in excess of $2,350,000. Deliveries for these orders are expected to commence in the first quarter of 2023 and continue through the fourth quarter of 2023.

Mitchell Binder, President and CEO of Orbit International commented, “These two new orders for our OEG, totaling in excess of $2,350,000, were received by our Q-Vio subsidiary from the same major defense contractor and are both for displays used on the same U.S. Army program. When combined, these contracts represent the largest award ever received by Q-Vio. All production for these displays will be done in our Hauppauge, NY facility and deliveries are projected throughout 2023.”

Binder added, “Despite these two significant awards, 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, funding delays due to increased prices and other timing issues. 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, although many of these awards that were expected during the current year may be delayed until 2023.”

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 new orders did Orbit International Corp. announce in October 2022?

Orbit International Corp. announced two new orders totaling over $2,350,000 from a major defense contractor for displays for a U.S. Army program.

When will Orbit International start delivering the new orders?

Delivery for the new orders is expected to begin in the first quarter of 2023 and continue through the fourth quarter of 2023.

What challenges is Orbit International facing regarding contract awards?

Orbit International is facing delays in contract awards due to pandemic-related work restrictions and shifts in Department of Defense priorities.

What is the significance of the new orders for Orbit's subsidiary Q-Vio?

The new orders represent the largest award ever received by Q-Vio, highlighting a significant milestone for the subsidiary.