Orbit International’s Power Group Reports Third Quarter Bookings of Approximately $3,400,000
Orbit International Corp. (OTC PINK:ORBT) reported third-quarter bookings of approximately $3.4 million for its Power Group, boosted by a $1.79 million order for power supplies used in an armament test system. Deliveries for these orders have begun and are expected to continue into Q1 2022. CEO Mitchell Binder noted the pandemic's impact on testing for new opportunities, potentially delaying awards into 2021, but remains optimistic about future VPX business prospects. Additionally, the company is cautiously navigating production challenges due to COVID-19 and anticipates resuming normal schedules.
- Third-quarter bookings reached approximately $3.4 million.
- Key order of $1.79 million for power supplies indicates strong demand.
- CEO expresses optimism about future VPX business opportunities.
- The pandemic has delayed testing and new opportunities, pushing awards into 2021.
- Weak performance in oil and gas exploration due to the pandemic.
- COVID-19 measures affected production efficiencies.
HAUPPAUGE, N.Y., Oct. 07, 2020 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that bookings for its Power Group (“OPG”), through its Behlman Electronics, Inc subsidiary, were approximately
Third quarter bookings for its OPG were highlighted by an approximately
Mitchell Binder, President and CEO of Orbit International commented, “As previously mentioned, the large award for power supplies used on an armament test system has Behlman returning to its role as a subcontractor on the program which should generate revenue with closer to our historical gross margins for this segment. In addition, bookings for its VPX products were firm during the quarter but it appears the pandemic has continued to slow much of the testing that is required on many of the new opportunities that this technology is being used thus delaying some anticipated awards into the fourth quarter and possibly into 2021. However, we believe that we continue to be at the forefront of this technology and based on our discussions with our VPX customers, we remain confident about our future VPX business opportunities and expect new preproduction and production awards, although the timing of such awards is an uncertainty.”
Binder added, “In addition to its defense related work, our OPG also provides power supplies for oil and gas exploration and test and measurement applications. This part of our business has been relatively weak since the beginning of the pandemic and may remain weak until the economy begins to fully recover. In addition, management implemented certain procedures to protect the health of our employees, which has had an impact on efficiencies in our production lines, particularly in the second quarter. Nevertheless, our production lines returned to normal for most of the third quarter that was just completed and assuming no unforeseen events from a situation that continues to evolve, including the possibility of another disruption caused by a second wave of the pandemic, we expect our normal production schedules to continue as we meet our delivery schedules to support our customers’ needs.”
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
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