Rancho Cucamonga-based EMRISE Corp. said on Thursday it’s been awarded one of the largest ever production contracts in the company’s history from a “long-standing U.K. customer” for Eurofighter Typhoon aircraft electrical devices.
The aerospace-industry manufacturer’s England-based subsidiary, Xcel Power Systems Ltd, received more than $2.3 million in orders and said it expects to ship out $1.1 million in Eurofighter parts for the rest of this year and more than $4 million from now until 2010.
On the same day, Heartland Advisors Inc., a Milwaukee-based private investment firm, reported it owned 4.9 percent of EMRISE — more than 1.8 million shares of stock. Heartland previously reported that it owned 8.7 percent in early February.
EMRISE stock closed at 55 cents a share on Friday. It peaked at $11.25 in 1992. The company must increase stock value to stay listed on the New York Stock Exchange. It will ask shareholders to approve a reverse stock split later this year.
EMRISE suffered a first-quarter loss of $900,000, mostly due to production and customer-related delays. Before that, the company saw a total of $5.5 million in losses between 2006 and 2007 because of slower sales, among other reasons.
The company must acquire Advanced Control Components for the reverse stock split to happen, assuming shareholders approve the split. It expects to close the deal by Aug. 15.
European aerospace companies in Germany, Italy, Spain and elsewhere, as well as the Royal Saudi Air Force, use EMRISE products for making fighter aircrafts.
Look below to read the latest news release from EMRISE Corp.:
|Press Release||Source: EMRISE Corporation|
EMRISE Corporation Receives More Than $2.3 Million in Follow-On Orders for Eurofighter Typhoon Aircraft
Thursday July 10, 8:45 am ET
Backlog of Military Electronic Devices for Eurofighter Rises to $5.5 Million, Shipments to Run Through 2010
The orders bring the Company‘s backlog of military electronic devices for the Eurofighter to $5.5 million. For the balance of 2008, the Company expects to ship $1.1 million, bringing total shipments for the full year to approximately $2.2 million with an equal amount expected to be shipped each year thereafter through 2010. Shipments against the orders announced today will commence in late 2009 and run through 2010.
EMRISE President and Chief Executive Carmine T. Oliva said: “These orders are part of the largest production contract ever awarded to EMRISE, which now totals more than $11.8 million. The original contract was awarded about four years ago and included approximately $750,000 in product development and pre-production shipments. Full-production orders have averaged about $2.2 million a year since 2005 and are expected to continue through 2010.
“Sales of military electronic devices, such as these for the Eurofighter Typhoon aircraft, remain a core business, and we expect continuing growth of sales to the military market in 2008 and beyond,“ Oliva added.
Oliva also said that the Eurofighter Typhoon aircraft is a new military aircraft program which is likely to continue for many years, as customers in both European and non-European countries, such as the Royal Saudi Air Force, are purchasing the aircraft. Developed by Europe‘s leading aerospace companies, Eurofighter Typhoon has become the aircraft of choice for six nations—Germany, Italy, Spain, United Kingdom, Austria and the Kingdom of Saudi Arabia—and is designed to fulfill those nations‘ air forces requirements well into this century.
The orders were received by the Company‘s Xcel Power Systems Ltd subsidiary located in England and, according to Oliva, reflect the success of a long-term technical development program with the customer and further demonstrate the Company‘s ability to win and make timely deliveries on multi-year contracts.
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; RF and microwave transmission; digital and rotary switching; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include commercial avionic “In-Flight Entertainment and Communications“ products and communications “Network Timing and Synchronization“ equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England, France and Japan. The Company has built a worldwide base of customers including all of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in Europe and Asia. For more information go to www.emrise.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation EMRISE‘s ability to continue to successfully capture and manage multi-year contracts, ability to maintain shipment coverage through 2010, and ability to record solid revenue increases from the electronic devices military market in 2008 and beyond, are all forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues; changes from within the European military aircraft program; economic difficulties; competitive pressures; unforeseen quality, manufacturing or performance issues associated with the electronic devices to be used on the Eurofighter Typhoon aircraft; and those factors contained in the “Risk Factors“ Section of the Company‘s Form 10-K for the year ended December 31, 2007, and other Company filings.
EMRISE Corporation John Donovan, Vice President Finance and Administration 909-987-9220 ext. 3201 JDonovan@emrise.com or Allen & Caron Inc Dan Matsui (investors) Len Hall (media) 949-474-4300 D.Matsui@allencaron.com Len@allencaron.com