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Re: cjstocksup post# 140

Tuesday, 08/21/2018 9:04:04 AM

Tuesday, August 21, 2018 9:04:04 AM

Post# of 177
TIK": The Company has demonstrated our market-leading Mode 5 products to mostkey international Mode 5 customers and we expect to receive volumeorders from these countries starting in the next two quarters. TheCompany estimates the total international Mode 5 market to be in the2,000-test set range, which represents a large and profitable marketopportunity. The Company believes it is well-positioned to capitalize onthese opportunities as our CRAFT and TS-4530A flight-line test sets havebeen endorsed by the U.S. military and we have already delivered testsets into 18 international markets. We believe the new T-47/M5 Mode 5IFF test set will be a cost-effective upgrade option for our largeinstalled base of Mode 4 test sets, and several large internationalcustomers have already indicated that volume orders for this new testset will be issued as soon the test set receives certification from AIMScertification, which is currently scheduled to take place next month.

The commercial avionics industry is undergoing a great deal of changeand we believe our new lightweight, hand-held SDR/OMNI product that isscheduled to enter production later this fiscal year will revolutionizethe commercial avionics test set business and should generate increasedmarket share at very attractive gross margin levels. The initialSDR-OMNI software release will provide test capability for Transponders(Modes A, C, and S), ADS-B, and 978 MHz UAT capability. This softwareradio technology will provide a platform for future products which weexpect to provide us with the opportunity to expand out of ourrelatively narrow avionics test market niche and enter the much largersecure communications radio test market. We are actively working tosecure partners to enter this growth market, and we believe that our newhardware platform provides unmatched capabilities in a market leadingform factor.
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