EAST AURORA, N.Y.--(BUSINESS WIRE)--Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense and other mission critical industries, announced today it has been awarded the production contract for the U.S. Army Radio Test Set TS-4549/T. The award provides for the program management, engineering, and product manufacturing to support the operational readiness of the Army's extensive range of radio communication devices.
The firm-fixed price, indefinite delivery, indefinite quantity (IDIQ) contract has a total value of up to $215 million with an expected period of performance of five years. The contract was awarded with an initial delivery order of $15.5 million to cover qualification and low-rate initial production. The Company expects this effort will generate revenue of approximately $10 million to $12 million in 2024 of which $5 million to $7 million is expected in the second quarter.
Peter J. Gundermann, President and CEO of Astronics Corporation, commented, "We are honored by the U.S. Army's confidence in our capabilities with this critical opportunity. Our advanced testing solutions are designed to ensure the Army maintains optimal force readiness across its communication infrastructure. This contract validates our commitment to supporting our defense customers and substantiates the investments made in our radio test technology. A significant milestone for our Test business, we expect that financial performance for the segment will improve considerably as production ramps."
This award corroborates Astronics Corporation's dedication to delivering innovative solutions that meet the stringent requirements for critical applications and further solidifies Astronics Test Systems as a leader in tactical radio test solutions.
About Astronics Corporation
Astronics Corporation (Nasdaq: ATRO) serves the world's aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company's strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.
For more information on Astronics and its solutions, visit Astronics.com.
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words "expect," "anticipate," "plan," "may," "will," "estimate," "feeling" or other similar expressions and include all statements with regard to achieving any revenue or profitability expectations, the level of financial performance improvement of the Test business, and the timing of receipt of orders or future orders. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the impact of global pandemics and related governmental and other actions taken in response, funding of the program, the state of the aerospace and defense industries, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the need for new and advanced test and simulation equipment, customer preferences and relationships, the effectiveness of the Company's supply chain, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
Contacts
Company Contact:
David C. Burney
Executive Vice President and CFO
invest@astronics.com
+1.716.805.1599
Astronics AES Contact:
Dennis Markert
Director Business Development
Dennis.Markert@astronics.com
+1.425.895.4374
Investor Contact:
Kei Advisors LLC
Deborah K. Pawlowski
Investor Relations
dpawlowski@keiadvisors.com
+1.716.843.3908