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 OHara, the Companys 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 Tels 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 Companys 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 Companys 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 Companys 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.
Tel-Instrument Electronics Corp.
Joseph P. Macaluso, 201-933-1600