Feb. 20--Tel-Instrument Electronics Corp., an East Rutherford defense contractor, said on Monday it swung to a profit in the last nine months and secured a $4.1 million order from the Army in the fiscal third quarter ending on Dec. 31, 2013.
In a news release on Monday, the company said it recorded operating income of $457,000 compared with an operating loss of $2.2 million in the last nine months. Tel also said its sales climbed 91.2 percent to $11.3 million in the same period.
The sales increase came from shipments of a product used for surveillance. Earlier this year, Tel was contracted to produce the surveillance instruments for the Army, according to the news release.
Joseph P. Macaluso, a spokesman for Tel, said in fiscal year 2012 the company had both technical delays with its CRAFT product _ which stands for Communication/Navigation Radio Frequency Avionics Flightline Tester _ and the surveillance program, but also was subject to government-imposed delays. The combination of the two led to shortfalls in Tel's fiscal year 2012 reports and the subsequent swing to profit this quarter, Macaluso said.
The program uses encryption to help identify "friends or foes," Macaluso said.
Tel said on Monday it had received $4.1 million of additional orders of the surveillance program, bringing the total backlog of the program at $19.7 million.
For the nine months ending on Dec. 31, 2013, the company reported a loss before taxes of $252,000, compared with $2.6 million for the nine months ending on Dec. 31, 2012.
Tel said it expects continued improvement in sales and income because of the sale of some intellectual property and continued receipt on purchases from the surveillance program, among other deliveries of products.
"The company has made great strides over the last year in improving its liquidity and looks forward to the commencement of full rate production on the surveillance program in the near term," Jeff O'Hara, Tel's president and chief executive officer, said in the news release.
Tel's contracts come as the United States is raising its defense spending. According to a report by IHS Jane's Aerospace Defense & Security, a London-based defense industry consulting firm, global spending on defense contracts is expected to increase 0.6 percent in 2014 _ which would mark the first time since the economic downturn in 2009 that military spending has increased.
Email: firstname.lastname@example.orgTwitter: @AndrewWyrich
(c)2014 The Record (Hackensack, N.J.)
Visit The Record (Hackensack, N.J.) at www.NorthJersey.com
Distributed by MCT Information Services