Tel-Instrument Electronics Corp. Announces Receipt of $4.3 Million Order from the U.S. Military
Tel-Instrument Electronics Corp. (AMEX:TIK)
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Today : Wednesday 10 October 2018
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Tel-Instrument Electronics Corp (“Tel”, or the “Company”) (NYSEAmerican:TIK) today reported that it has received a $4.3 million orderfor additional Mode 5 test sets for the U.S. military. Tel is also innegotiations with Lockheed Martin on a Mode 5 test set order which isexpected 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. militarywill result in a sharp increase in revenues and profitability asshipments will commence this month. The pending Lockheed Martin contractfor the F-35 program is also important for the Company and we expectadditional volume orders next year as well. Moreover, the internationalMode 5 market is becoming much more active due to the January 1, 2020compliance mandate for Mode 5 capability with competitive solicitationsexpected in several countries this fall. In addition, several largeinternational markets have indicated that volume orders for Tel’s newT-47/M5 test set will be issued as soon the test set receives AIMScertification (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 thetest set of choice for many international customers as it provides morecapability than our competition and can be sold as an upgrade kit forour legacy Mode 4 IFF test sets. Each of these large internationalmarkets represent a multi-million opportunity for Tel and we are wellpositioned in all markets as our test sets are highly regarded in theindustry. These contracts will reinforce our position as the pre-eminentworldwide supplier of Mode 5 flight-line test equipment.
The introduction of our new SDI – OMNI (Hand-held Test Set), which isexpected later this fiscal year, should greatly improve our marketposition in the commercial avionics sector as it is a revolutionaryproduct that will replace several competitive test sets. It will alsoallow entrance into the much larger secure communications test setmarket.
To support the impending growth in our business, the Company has raisedan additional $1 million of preferred stock financing and has reached anagreement with our bank to extend our bank loan until May 31, 2019.Despite the challenges the company has faced over the last two years, weare now well positioned for strong growth and are excited about ourfuture prospects.”
About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of avionics testand 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, andrepair 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 innature 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 concerningthe Company’s outlook, pricing trends, and forces within the industry,the completion dates of capital projects, expected sales growth, costreduction strategies, and their results, long-term goals of the Companyand other statements of expectations, beliefs, future plans andstrategies, anticipated events or trends, and similar expressionsconcerning matters that are not historical facts. All predictions as tofuture results contain a measure of uncertainty and, accordingly, actualresults could differ materially. Among the factors which couldcause a difference are: changes in the general economy; changesin demand for the Company’s products or in the cost and availability ofits raw materials; the actions of its competitors; the success of ourcustomers; 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. Anumber of these factors are discussed in the Company’s previous filingswith the U.S. Securities and Exchange Commission. The Company disclaimsany intention or obligation to update any forward-looking statements asa result of developments occurring after the date of this press release.The safe harbor for forward-looking statements contained in theSecurities Litigation Reform Act of 1995 (the “Act”) protects companiesfrom liability for their forward-looking statements if they comply withthe requirements of the Act.
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Tel-Instrument Electronics Corp.
Joseph P. Macaluso, 201-933-1600