CPI Aerostructures Authorized by Raytheon to Begin Next Phase of Next Generation Jammer Mid-Band program
September 04 2019 - 8:00AM
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.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
For more information, visit www.cpiaero.com, and follow us on
Twitter @CPIAERO.
Contact: |
|
Vincent Palazzolo |
Investor Relations Counsel: |
Chief Financial Officer |
LHA |
CPI Aero |
Jody Burfening/Sanjay M. Hurry |
(631) 586-5200 |
(212) 838-3777 |
www.cpiaero.com |
cpiaero@lhai.com |
|
www.lhai.com |
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