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Orbit International Corp., an electronics manufacturer and software solution provider, has announced that its Electronics Group has received a letter contract from a major prime contractor for approximately $700,000, authorizing it to commence the procurement of material, while negotiations for the final purchase order are being concluded. The value of the purchase order is expected to exceed $825,000 and negotiations should be completed no later than the end of the third quarter. Deliveries of the completed units are expected to commence in the fourth quarter of 2016 and continue through the third quarter of 2018.
Mitchell Binder, president and CEO of Orbit International, commented, "This is the second such letter contract we have received in the last two months. The purpose of the letter contract is to provide our Company the funding in order to begin the procurement process while the final purchase order is being negotiated. This also allows our Electronics Group to meet the delivery dates expected to be included in the final purchase order."
Binder added, "The previous letter contract, received in June 2016, was for a follow-on order for our switch panels with an estimated value that is expected to exceed $1,000,000. We have commenced negotiations on that contract with our customer and we expect to finalize a purchase order by the end of this month. This current letter contract, for one of our display products, is expected to be finalized as a purchase order by the end of this quarter for a value in excess of $825,000. This current letter contract further elevates the increased level of bookings that our Electronics Group has recorded since the beginning of the year and will enhance our delivery schedules for the end of 2016 and into 2017."