[November 08, 2012] |
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Orbit International to Consolidate Certain of Its Operations within Its Electronics Group
HAUPPAUGE, N.Y. --(Business Wire)--
Orbit International Corp. (NASDAQ:ORBT) today announced the
consolidation of production and administrative related functions
involving its Integrated Combat Systems ("ICS") and Tulip Development
Laboratory ("TDL") facilities.
Beginning November 15, 2012 most of the production and administrative
functions currently performed at the ICS facility in Louisville, KY will
be transferred to Orbit's 50,000 square foot TDL facility in Quakertown,
PA. Operations consolidation should be completed before 2012 year-end.
Mitchell Binder, President and CEO of Orbit International commented,
"Orbit is committed to both maximizing profitability and shareholder
value. After careful analysis, we concluded that this course of action
was both necessary and appropriate. Going forward, the ICS facility will
be refocused on logistics and business development initiatives while
preserving select production efforts. The annualized salary savings from
this operational change are expected to be in excess of $550,000."
Mr. Binder continued, "ICS currently leases approximately 23,000 square
feet, approximately half of which is currently being subleased to a
third party. The ICS lease is up for renewal in early 2014, at which
time we plan to relocate ICS operations into a smaller, more suitable
facility, thereby creating additional savings in occupancy related
costs."
Mr. Binder concluded, "We do not anticipate requiring additional
employees at our TDL facility to support the ICS production effort. Our
TDL facility is not currently operating at full capacity and this
consolidation of operations with ICS is expected to improve the
facility's utilization for 2013."
Orbit International Corp. is involved in the manufacture of customized
electronic components and subsystems for military and nonmilitary
government applications through its production facilities in Hauppauge,
New York, and Quakertown, Pennsylvania; and designs and manufactures
combat systems and gun weapons systems, provides system integration and
integrated logistics support and documentation control at its facilities
in Louisville, Kentucky. Its Behlman Electronics, Inc. subsidiary
manufactures and sells high quality commercial power units, AC power
sources, frequency converters, uninterruptible power supplies and COTS
power solutions.
Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company including,
statements regarding our expectations of Orbit's operating plans,
deliveries under contracts and strategies generally; statements
regarding our expectations of the performance of our business;
expectations regarding costs and revenues, future operating results,
additional orders, future business opportunities and continued growth,
may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Federal
securities laws. Although Orbit believes that the expectations reflected
in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved.
Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond Orbit International's
ability to control or predict. Important factors that may cause actual
results to differ materially and that could impact Orbit International
and the statements contained in this news release can be found in
Orbit's filings with the Securities and Exchange Commission including
quarterly reports on Form 10-Q, current reports on Form 8-K, annual
reports on Form 10-K and its other periodic reports. For forward-looking
statements in this news release, Orbit claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Orbit assumes no obligation to
update or supplement any forward-looking statements whether as a result
of new information, future events or otherwise.
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