Communications & Power Industries Receives $4.9 Million Aegis Repairs Contract
PALO ALTO, Calif., Oct 08, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Communications & Power Industries, Inc. (CPI) has received a one-year contract for up to $4.9 million to support the Aegis weapons system. CPI, a subsidiary of CPI International, Inc. (Nasdaq: CPII), is a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.
Under the contract, CPI will provide traveling wave tubes (TWTs) to support the AN/SPY-1D(V) radar system on the Aegis weapons system. CPI's TWT shipments for this contract are expected to begin in the second half of fiscal 2010 and be completed within 12 months.
The Aegis weapons system is CPI's largest single defense program. The AN/SPY-1 radar system is the primary air and surface radar on the U.S. Navy Ticonderoga-class cruisers and DDG-51 Arleigh Burke-class destroyers, as well as on several foreign navies' destroyers. The AN/SPY-1D(V) configuration of the radar system is designed to operate in high clutter, near-coast environments.
"CPI provides several different new and repair products for the Aegis weapons system in its many configurations, and it is a key defense platform for us. Our defense markets have stabilized, and this significant, short-term contract for the Aegis weapons system further demonstrates that there remains healthy and immediate demand for CPI's spare and repair products within those markets," said Joe Caldarelli, chief executive officer of CPI.
Work on the contract will be completed at CPI's facilities in Palo Alto, Calif. The contract was awarded by the Naval Inventory Control Point (NAVICP) in Mechanicsburg, Pa.
About CPI International, Inc.
CPI International, Inc., headquartered in Palo Alto, California, is the parent company of Communications & Power Industries, Inc., a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications. Communications & Power Industries, Inc. develops, manufactures and distributes products used to generate, amplify, transmit and receive high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications. End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; transmission and amplification of voice, data and video signals for broadcasting, Internet and other types of commercial and military communications; providing power and control for medical diagnostic imaging; and generating microwave energy for radiation therapy in the treatment of cancer and for various industrial and scientific applications.
Certain statements included above constitute "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. Forward-looking statements provide our current expectations, beliefs or forecasts of future events. Forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual events or results to differ materially from the results projected, expected or implied by these forward-looking statements. These factors include, but are not limited to, competition in our end markets; the impact of a general slowdown in the global economy; our significant amount of debt; changes or reductions in the U.S. defense budget; currency fluctuations; U.S. government contracts laws and regulations; changes in technology; the impact of unexpected costs; and inability to obtain raw materials and components. These and other risks are described in more detail in our periodic filings with the Securities and Exchange Commission. As a result of these uncertainties, you should not place undue reliance on these forward-looking statements. All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We undertake no duty or obligation to publicly revise any forward-looking statement to reflect circumstances or events occurring after the date hereof or to reflect the occurrence of unanticipated events or changes in our expectations.
SOURCE CPI International, Inc.
Copyright (C) 2009 PR Newswire. All rights reserved