Giga-tronics, Inc. (OTCQB: GIGA) is engaged in the production and marketing of YIG-tuned oscillators, RADAR filters, and microwave synthesizers for use in military defense applications. Shares jumped 32.26% on Tuesday, February 5, 2019. Over the past month, Giga-tronics has seen an average daily volume of 11,615 shares. However, on Tuesday, 196,503 shares traded hands, equating to $80,500 in dollar volume.
Shares surged Tuesday after Giga-tronics announced it has received a $4 million order of its Real-Time Threat Emulation System (TEmS) from the Naval Air Warfare Center. The TEmS is “a combination of its new Advanced Signal Generator Hardware Platform and software developed and licensed to the Company from a major aerospace and defense company.” The order is for two TEmS units and $671,000 in engineering services “to support and upgrade currently installed systems.” The first unit is expected to be delivered by the end of March 2019, followed by the second TEmS unit which is expected in June 2019. The engineering services Giga-tronics will offer the Naval Air Warfare Center is currently set for a period of 12 months. In addition, on Tuesday Giga-tronics released their preliminary operating results for Q3 of the 2019 fiscal year, with the complete earnings to be made available on February 11, 2019. Giga-tronics reported $1.9 million in net sales and a net loss of approximately $500,000 in the third quarter. Here is the full press release detailing Giga-tronics’ $4 million order from the Naval Air Warfare Center and its preliminary financial results for Q3 of fiscal 2019:
Giga-tronics, Inc. Press Release:
DUBLIN, Calif., Feb. 05, 2019 (GLOBE NEWSWIRE) — Giga-tronics Incorporated (the “Company”) announced today that it has received a $4 million order from the Naval Air Warfare Center relating to its Real-Time Threat Emulation System (Real-Time TEmS), which is a combination of its new Advanced Signal Generator Hardware Platform and software developed and licensed to the Company from a major aerospace and defense company. The order is comprised of two TEmS units of equal value along with approximately $671,000 of engineering services to support and upgrade currently installed systems. The Company expects to fulfill the order for the first TEmS unit in the quarter ending March 2019, which is the Company’s fourth quarter of its current fiscal year. The Company expects to fulfill the order for the second TEmS unit during the quarter ending June 2019, which is the first quarter of the Company’s next fiscal year. The Company expects to provide the engineering services over the next twelve months.
The Company also announced today its preliminary operating results for the third quarter of fiscal 2019, which ended December 29, 2018. Net sales are expected to be approximately $1.9 million. The net loss for the third quarter is expected to be approximately $500,000. The Company expects to show approximately $250,000 in cash used from operations in the third quarter fiscal 2019. The Company will issue a more complete earnings release with commentary for the third quarter of fiscal 2019 and host a conference call the week of February 11, 2019.
Commenting on the $4 million order, Lutz Henckels, the Company’s Executive Vice President and Interim Chief Financial Officer stated, “Changing our sales approach to solution sales and changing our sales team in mid-calendar year 2018 were critical to obtaining this highly anticipated order from NAVAIR. We believe this order and the expected follow-on orders for our disruptive RADAR and Electronic Warfare test solution will allow us to be profitable in the current quarter and each quarter of our upcoming fiscal year 2020.”
Giga-tronics is a publicly held company, traded on the OTCQB Capital Market under the symbol “GIGA”. Giga-tronics produces YIG (Yttrium, Iron, Garnet) tuned oscillators, RADAR filters, and microwave synthesizers for use in military defense applications as well as sophisticated test and measurement equipment primarily used in electronic warfare test & emulation applications.
This press release contains forward-looking statements, such as those concerning future revenues, operating results and profitability and expected product shipments. Forward-looking statements involve risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated in the forward-looking statements. Actual results may differ significantly due to a number of factors, such as: Uncertainty as to the Company’s ability to continue as a going concern and to secure additional financial as needed; the potential for delays in customer orders for the new TEmS product and the Company’s ability to manufacture and ship it without unexpected delays; the potential that anticipated orders may not be received or may be delayed or deferred; the potential that existing orders may be canceled or deferred; and general market conditions. For further discussion, see the Company’s most recent annual report on Form 10-K for the fiscal year ended March 31, 2018 Part I, under the heading “Risk Factors” and Part II, under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements are made as of the date of this press release. The Company has no intention and disclaims any duty to update the forward-looking statements this press release.
Article By: Andrew Rego