CPI Aero Receives New Multi-Year Agreement and $7.5 Million Firm Order For Airborne Reconnaissance Pods From Collins Aerospace
-The Company Estimates Agreement Has 3-year Potential Value of Approximately $20 Million-
November 30, 2022
Edgewood, NY – CPI Aerostructures, Inc. (CPI Aero®) (NYSE American: CVU) today announced that it has entered into a pricing agreement with Collins Aerospace, a Raytheon Technologies business, to provide highly integrated airborne pod structures in support of Collins’ MS-110 Multispectral Airborne Reconnaissance System. The agreement has a three-year period of performance with an option for an additional year. The Company had received initial funding for non-recurring of $1.2 million under the agreement in the 1st Quarter 2022. This most recent delivery order and associated program start-up costs add additional funding to the original award.
The MS-110 represents the next generation of the DB-110 Dual Band Reconnaissance System, which provides day and nighttime wide area, long-range imagery coverage. CPI has been a supplier of DB-110 Airborne Pods since 2012.
“This three-year deal paves the way for the program to be successful for CPI Aero over the next several years. Our achievements on the DB-110 pod laid the foundation for us to pursue more complex and integrated structures. It is those very structures that comprise our aerosystems segment – the fastest growing part of our business,” said Dorith Hakim, CPI Aero’s CEO & President.
“CPI Aero is proud of the work we do supporting multiple reconnaissance systems developed by Collins Aerospace, including the DB-110, MS-110 and Tactical Synthetic Aperture Radar (TacSAR) pods.”
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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. Forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. The Company does not guarantee that it will actually achieve the plans, intentions or expectations disclosed in its forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements.
There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by its forward-looking statements, including those important factors set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2021 and the Company’s subsequent filings with the Securities and Exchange Commission. Although the Company may elect to do so at some point in the future, the Company does not assume any obligation to update any forward-looking statements and it disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.
Contact
Investor Relations Counsel CPI Aerostructures, Inc.
LHA Investor Relations Andrew L. Davis
Jody Burfening Chief Financial Officer
(212) 838-3777 (631) 586-5200
cpiaero@lhai.com www.cpiaero.com
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