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Orbit International Corp. Obtains Waiver and Amendment from Its Primary Lender

^{Published on 2011-04-01 10:30:29 - Market Wire}
 

HAUPPAUGE, N.Y.--([ BUSINESS WIRE ])--Orbit International Corp. (NASDAQ:ORBT), an electronics manufacturer and software solution provider, today announced that its primary lender has waived the Companya™s non-compliance with one financial covenant of its credit agreement for the fourth quarter ended December 31, 2010. The lender also amended the credit agreement regarding the same financial covenant through the first three quarters in 2011. As reported on March 10, 2011, the Company had not been in compliance with the aforementioned financial covenant due to the 2010 fourth quarter loss and liability associated with a non-recurring expense incurred in connection with the non-renewal of the employment contract of its former President and CEO. The lender, in consideration of such waiver and amendment, added a new liquidity covenant and assessed a waiver fee of $10,000 plus legal fees. The interest rate on the Companya™s line of credit and term debt remained unchanged.

Mitchell Binder, Acting Chief Executive Officer stated, aWe are pleased that our primary lender has recognized the unusual circumstances that placed Orbit out of compliance and for granting this waiver and amendment. With our streamlined corporate structure and upturn in orders, backlog and anticipated revenues, we expect to be in compliance with the amended financial covenant for the first three quarters of this year and back in compliance with the original financial covenant by December 31, 2011.a

Orbit International Corp. is involved in the manufacture of customized electronic components and subsystems for military and nonmilitary government applications through its production facilities in Hauppauge, New York, and Quakertown, Pennsylvania; and designs and manufactures combat systems and gun weapons systems, provides system integration and integrated logistics support and documentation control at its facilities in Louisville, Kentucky. Its Behlman Electronics, Inc. subsidiary manufactures and sells high quality commercial power units, AC power sources, frequency converters, uninterruptible power supplies and associated analytical equipment. The Behlman military division designs, manufactures and sells power units and electronic products for measurement and display.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbita™s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, annual reports on Form 10-K and its other periodic reports. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.