Giga-tronics High Performance Filter Contract Extended to Second Aircraft Platform; Maximum Total $6.89M
Giga-tronics Incorporated (Nasdaq: GIGA) announced today that it has completed negotiations with a major aircraft supplier to extend utilization of its high performance filters to a second platform. The new contract, totaling more than $6.9M if all options are exercised, will extend production of the filters at Giga-tronics Microsource division through 2015.
Giga-tronics Microsource has been supplying their sole-sourced filters for a number of years and was recently under contract to produce a variant of the filter for a second aircraft platform. With the successful completion of this development effort, the manufacturer's RADAR modernization program has entered the low rate initial production phase following more than a year of evaluation. John Regazzi, Giga-tronics CEO stated, "While our Microsource activity slowed last year due to flight testing, we expect business levels going forward will grow substantially with the incremental award." Giga-tronics has received the first year's release of this contract for $2.3M and will book this order in the first quarter of the Company's 2013 fiscal year which began April 1, 2012.
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