Tel-Instrument Electronics Corp. Announces Receipt of $4.3 Million Order from the U.S. Military
10 October 2018 - 11:30PM
Business Wire
Tel-Instrument Electronics Corp (“Tel”, or the “Company”) (NYSE
American:TIK) today reported that it has received a $4.3 million
order for additional Mode 5 test sets for the U.S. military. Tel is
also in negotiations with Lockheed Martin on a Mode 5 test set
order which is expected to be issued later this month.
Jeffrey O’Hara, the Company’s President and CEO indicated that
“this $4.3 million order for additional Mode 5 test sets for the
U.S. military will result in a sharp increase in revenues and
profitability as shipments will commence this month. The pending
Lockheed Martin contract for the F-35 program is also important for
the Company and we expect additional volume orders next year as
well. Moreover, the international Mode 5 market is becoming much
more active due to the January 1, 2020 compliance mandate for Mode
5 capability with competitive solicitations expected in several
countries this fall. In addition, several large international
markets have indicated that volume orders for Tel’s new T-47/M5
test set will be issued as soon the test set receives AIMS
certification (a U.S. DOD entity that certifies all Mode 5
equipment) which is taking place this month. We believe the T-47/M5
will be the test set of choice for many international customers as
it provides more capability than our competition and can be sold as
an upgrade kit for our legacy Mode 4 IFF test sets. Each of these
large international markets represent a multi-million opportunity
for Tel and we are well positioned in all markets as our test sets
are highly regarded in the industry. These contracts will reinforce
our position as the pre-eminent worldwide supplier of Mode 5
flight-line test equipment.
The introduction of our new SDI – OMNI (Hand-held Test Set),
which is expected later this fiscal year, should greatly improve
our market position in the commercial avionics sector as it is a
revolutionary product that will replace several competitive test
sets. It will also allow entrance into the much larger secure
communications test set market.
To support the impending growth in our business, the Company has
raised an additional $1 million of preferred stock financing and
has reached an agreement with our bank to extend our bank loan
until May 31, 2019. Despite the challenges the company has faced
over the last two years, we are now well positioned for strong
growth and are excited about our future prospects.”
About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of
avionics test and measurement solutions for the global commercial
air transport, general aviation, and government/military aerospace
and defence markets. Tel-Instrument provides instruments to test,
measure, calibrate, and repair a wide range of airborne navigation
and communication equipment. For further information please visit
our website at www.telinstrument.com.
This press release includes statements that are not historical
in nature and may be characterized as “forward-looking statements,”
including those related to future financial and operating results,
benefits, and synergies of the combined companies, statements
concerning the Company’s outlook, pricing trends, and forces within
the industry, the completion dates of capital projects, expected
sales growth, cost reduction strategies, and their results,
long-term goals of the Company and other statements of
expectations, beliefs, future plans and strategies, anticipated
events or trends, and similar expressions concerning matters that
are not historical facts. All predictions as to future results
contain a measure of uncertainty and, accordingly, actual results
could differ materially. Among the factors which could cause a
difference are: changes in the general economy; changes in demand
for the Company’s products or in the cost and availability of its
raw materials; the actions of its competitors; the success of our
customers; technological change; changes in employee relations;
government regulations; litigation, including its inherent
uncertainty; difficulties in plant operations and materials;
transportation, environmental matters; and other unforeseen
circumstances. A number of these factors are discussed in the
Company’s previous filings with the U.S. Securities and Exchange
Commission. The Company disclaims any intention or obligation to
update any forward-looking statements as a result of developments
occurring after the date of this press release. The safe harbor for
forward-looking statements contained in the Securities Litigation
Reform Act of 1995 (the “Act”) protects companies from liability
for their forward-looking statements if they comply with the
requirements of the Act.
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version on businesswire.com: https://www.businesswire.com/news/home/20181010005477/en/
Tel-Instrument Electronics Corp.Joseph P. Macaluso,
201-933-1600
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