EDGEWOOD, N.Y., Sept. 04, 2019 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) announced today that Raytheon Company (NYSE: RTN) authorized CPI Aero to begin production of pod structures and air management system (AMS) components for the System Demonstration and Test Article (SDTA) phase of the Next Generation Jammer Mid-Band (NGJ-MB) program. The binding notification provides approximately $2 million in funding to begin work and establishes a maximum value of $23.3 million for a contract that is expected to be finalized before the end of 2019. Deliveries of SDTA pods and AMS components are expected to begin in August of 2020 and end in the first half of 2021.
Raytheon is designing and manufacturing NGJ-MB, a high-capacity and power airborne electronic attack weapon system for the EA-18G Growler aircraft. It is designed to protect air forces by denying, degrading and disrupting threat radars and communication devices. There are two NGJ-MB pods per EA-18G aircraft. CPI Aero announced in August 2018 that it is manufacturing the pod structure and AMS components for Raytheon. Raytheon delivered the first NGJ-MB Engineering Development Model pod to the U.S. Navy for ground and aircraft integration testing in July.
“CPI Aero has been a key supplier to Raytheon on this program since 2016, and we are proud to play an important role in getting this critical electronic warfare capability into the hands of the U.S. Navy for testing,” stated Douglas J. McCrosson, president and CEO of CPI Aero. “As we begin the SDTA phase, we reach another waypoint on the path towards receiving a decision by the U.S. Navy to proceed with Low Rate Initial Production in late 2020 to keep the program on track to achieve Initial Operating Capability in 2022. The expected SDTA contract, combined with the previous Engineering and Manufacturing Development contract, increases the total value of funded awards to CPI Aero to approximately $60 million. We estimate that the total value to CPI Aero from the NGJ-MB production phase could be in excess of an additional $150 million through 2030.”
About CPI Aero
CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. CPI Aero is included in the Russell Microcap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for the year ended December 31, 2018, and Form 10-Q for the three-month periods ended March 31, 2019 and June 30, 2019.
|Vincent Palazzolo||Investor Relations Counsel:|
|Chief Financial Officer||LHA|
|CPI Aero||Jody Burfening/Sanjay M. Hurry|
|(631) 586-5200||(212) 838-3777|