EDGEWOOD, N.Y., Aug. 30, 2018 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: American) announced today that Raytheon Company (NYSE: RTN) has awarded CPI Aero modified purchase orders totaling $12.5 million related to the Engineering and Manufacturing Development (EMD) phase of Next Generation Jammer Mid-Band (NGJ-MB). Previously, Raytheon awarded CPI Aero a $4 million contract for pod structural housings in July 2016 and a $2.7 million contract in September 2016 to manufacture Air Management System (AMS) door and duct assemblies that are installed within the pod housing. The contract modifications announced today, which increase the total value to CPI Aero for the EMD phase to more than $19 million, are for work scope changes associated with these earlier contracts, including additional systems integration efforts that will be performed during CPI Aero’s build-up of the pod assembly. CPI Aero expects to complete its work for the EMD phase systems in late 2019.
In 2016, the U.S. Navy awarded Raytheon a $1 billion NGJ-MB Engineering and Manufacturing Development contract. The capability will augment, and eventually replace the ALQ-99 system on the U.S. Navy’s EA-18G Growler carrier-based electronic warfare aircraft. There are two pods per EA-18G aircraft. CPI Aero estimates that the total value to CPI Aero of the NGJ-MB production phase could be in excess of an additional $150 million through 2030.
Douglas J. McCrosson, president and CEO of CPI Aero, stated, “We are honored that Raytheon, one of the leading aerospace and defense companies in the world, has recognized the value added by our team to date toward the success of the NGJ-MB pod program. Raytheon has done a tremendous job of embracing key suppliers such as CPI Aero within the integrated product team and we are proud to play an important role in transferring this critical electronic warfare capability from development into the hands of our warfighters.”
About CPI AeroCPI 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, 2017, and Form 10-Q for the three-month periods ended March 31, 2018 and June 30, 2018.
Vincent Palazzolo Investor Relations Counsel: Chief Financial Officer LHA Jody Burfening/Sanjay M. Hurry CPI Aero (631) 586-5200 (212) 838-3777 www.cpiaero.com firstname.lastname@example.org www.lhai.com