EDGEWOOD, NY--(Marketwired - Sep 27, 2016) - CPI Aerostructures, Inc. ("CPI Aero®") (NYSE MKT: CVU) announced today that Raytheon Company (NYSE: RTN) has awarded CPI Aero a contract valued at approximately $2.7 million to manufacture air management system (AMS) door and duct assemblies for the Engineering and Manufacturing Development (EMD) phase of the Next Generation Jammer Increment 1 Pod ("NGJ Inc 1 Pod"). In July 2016, CPI Aero announced a $4 million award from Raytheon for pod structural housings of the NGJ Inc I Pod. AMS door and duct assemblies are installed within the pod housing. CPI Aero expects to complete its work under the new contract in 2018.
As noted in a July 11, 2016 press release announcing the Company's initial contract on the NGJ Inc 1 Pod, 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 135 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, "This contract award recognizes our technical skill and experience provided under the NGJ Inc 1 Pod program, which has opened up opportunities for additional content. We are very proud to strengthen our relationship with Raytheon and to contribute further to a program that will be vital to our national security."
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 periods ended March 31, 2016 and June 30, 2016.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.