CPI Aero Awarded a Contract by Northrop Grumman for Its Airborne Laser Mine Detection System Program With a Potential Value of $6.75 Million
March 24, 2015
Edgewood, NY – CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) has been awarded a $1.21 million contract by Northrop Grumman Corporation (NYSE: NOC) to manufacture pod structural housings for the Airborne Laser Mine Detection System (ALMDS). The contract includes options which, if exercised, would bring the cumulative value to $6.75 million.
In December 2014, the U.S. Navy issued a contract to Northrop Grumman to deliver five additional Low Rate Initial Production (LRIP) systems. The contract also includes five subsequent options to deliver follow-on Full Rate Production (FRP) systems at a maximum order quantity of four systems per option. CPI Aero will manufacture pod structural housings under this new contract, with deliveries scheduled to commence in early 2016. The period of performance of the entire CPI Aero contract, including option periods, is through 2021.
Since 2005, CPI Aero has delivered 18 ALMDS pod structural housings for the U.S. Navy’s LRIP Phases 1 through 4 and other Foreign sales. Northrop Grumman’s ALMDS is part of the mine countermeasure mission package on the U.S. Navy’s new Littoral Combat Ship and is designed to find and geolocate mine-like objects in waters near the ocean’s surface, where aircraft carriers and expeditionary strike groups must operate. The ALMDS is mounted on an MH-60S helicopter. The pod structural housings to be built by CPI Aero are pressurized and contain the thermally conditioned ALMDS laser and electronics.
About Northrop Grumman
Northrop Grumman is a leading global security company providing innovative systems, products and solutions in aerospace, electronics, information systems, and technical services to government and commercial customers worldwide.
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. Among the key national security programs that CPI Aero supplies are the E-2D Advanced Hawkeye surveillance aircraft, the UH-60 BLACK HAWK® helicopter, the MH-53/CH-53 variant helicopters, the F-16 fighter aircraft, the MH-60S mine countermeasure helicopter, the AH-1Z ZULU attack helicopter, the DB-110 reconnaissance pod and the ALMDS mine detecting pod. In the commercial aviation market CPI Aero manufactures products for the Gulfstream G650 ultra-large cabin business jet, the HondaJet advanced light jet, the Embraer Phenom 300 business jet, the new Cessna Citation X+, and the S-92® helicopter. 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, 2014.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
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