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Orbit International Corp., an electronics manufacturer and software solution provider, today announced that its Electronics Group (OEG), reported bookings in excess of $2,800,000 for the month of May 2022. Deliveries for certain of these orders have already commenced and are expected to continue through the second quarter of 2023.
Mitchell Binder, President and CEO of Orbit International, commented, “We are pleased to report that our OEG continues to receive significant orders with total bookings for the month of May 2022 exceeding $2,800,000. These orders were highlighted by our newly acquired subsidiary, Simulator Product Solutions LLC (“SPS”), reporting orders in excess of $1,170,000, its largest booking month since it was acquired earlier this year. In addition, our Q-Vio subsidiary reported orders in excess of $900,000, which included a development order for engineering services that has the potential to develop into significant production orders. These production orders, if received, are not expected before mid-2023.”
Binder added, “Although we had a solid month of bookings for our OEG, as previously mentioned, we are finding that certain orders that we were expecting in the current quarter have been delayed to the second half of 2022 for both the OEG and our Power Group (“OPG”). These orders are generally follow-on orders on existing programs for which we have made deliveries for several years. Several factors are causing delays on these awards, which are coming from the Department of Defense (“DoD”), including work restrictions related to the pandemic and a shifting of prioritization of certain contract awards from the DoD. It should be noted that timing uncertainty in the receipt of contracts from our prime contractors doing business with the U.S government is an inherent factor in our industry. As in the past, although timing remains an uncertainty, we expect these purchase orders to eventually be received. Nevertheless, with the acquisition of SPS, we continue to expect a firm year of operating results.”
In January 2022, Orbit International Corp. announced that its newly formed subsidiary, SPS, had completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999. The transaction valued Panel at approximately $6,500,000, subject to adjustment, with $4,000,000 of the purchase price paid in cash at closing, an aggregate of up to $1,200,000 in performance related payments payable at the end of 2022 and 2023, and the issuance to Panel of a 19.9% ownership interest in SPS.