FARNBOROUGH, ENGLAND--(Marketwired - Jul 11, 2016) - CPI Aerostructures, Inc. ("CPI Aero®") (NYSE MKT: CVU) today announced at the Farnborough International Airshow that Raytheon Company (NYSE: RTN) has awarded CPI Aero a contract valued at approximately $4 million to manufacture the structural pod housings for the Engineering and Manufacturing Development (EMD) phase of the Next Generation Jammer Increment 1 Pod ("NGJ Inc 1 Pod"). The pod housings will be used during mission systems testing and airworthiness certification. CPI Aero expects to complete its work under the contract in 2018.
Raytheon received a $1 billion sole source contract from the U.S. Navy in April 2016 for the EMD phase of the NGJ, an external jamming pod that will disrupt and degrade enemy aircraft and ground radar and communication systems, and will replace the ALQ-99 system on the U.S. Navy's EA-18G GROWLER® carrier-based electronic warfare aircraft. After a successful development program, the U.S. Navy plans to install NGJ Inc 1 Pods on 138 EA-18G GROWLER® aircraft during the NGJ Inc 1 Pod production phase. There are two pods per aircraft.
Douglas J. McCrosson, president and CEO of CPI Aero, stated, "We have earned a reputation as a premier value-added contract manufacturer of reconnaissance, radar and laser system pods. Now we will bring this same level of technical expertise and quality craftsmanship to produce the structural housing assembly for the NGJ, the most advanced pod-based electronic warfare system in the world."
Continued Mr. McCrosson, "With this win, CPI Aero adds a new customer, Raytheon, that has been a world leader in electronic warfare for more than 50 years. We are honored that they have entrusted CPI Aero to work with them on one of their highest profile new programs and to be part of the Raytheon NGJ Inc 1 Pod team. We look forward to a long and mutually rewarding relationship."
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. 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, 2015, and Form 10-Q for the three-month period ended March 31, 2016.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.