PALO ALTO, Calif., May 27, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Communications & Power Industries, Inc. (CPI) has been awarded approximately $12 million in follow-on orders from General Dynamics SATCOM Technologies in fiscal 2008 to support Increment One of the U.S. Army's Warfighter Information Network Tactical (WIN-T) program. In 2007, General Dynamics selected CPI to supply Ku-band, high-power satellite communications (satcom) amplifiers for its specialized satcom earth terminals for the WIN-T program.
In April, CPI was awarded approximately $8.6 million to provide additional Ku-band amplifiers to support the WIN-T program. CPI has previously received approximately $3.3 million in awards from General Dynamics in fiscal 2008 to support the WIN-T program and estimates that the program could have a total potential value of more than $50 million to CPI over a period of four years. 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 most recent follow-on award, CPI will provide General Dynamics with Ku-band traveling-wave tube amplifiers for use in approximately 200 General Dynamics Satellite Transportable Terminals (STTs). Each STT will be outfitted with multiple CPI Ku-band amplifiers that combine a high-efficiency helix traveling-wave tube with a compact, lightweight "outdoor" amplifier. Work on this contract will be performed at CPI's Microwave Power Products Division and Satcom Division.
"The WIN-T program enables warfighters to rapidly establish reliable and secure communications while in the field, addressing a critical need for today's soldiers," said Joe Caldarelli, chief executive officer of CPI. "The WIN-T program is an important program for CPI, establishing our credentials in, and illustrating our commitment to, the emerging military satellite communications market. CPI's amplifier for this program has successfully passed extensive environmental and performance qualification tests in the STT. We have delivered more than 150 amplifiers for the WIN-T program to date, and we expect to ramp up production further in the second half of fiscal 2008."
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 and transmit 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, our ability to consummate the described bank financing on reasonable terms, competition in our end markets; our significant amount of debt; changes or reductions in the U.S. defense budget; U.S. government contracts laws and regulations; changes in technology; the impact of unexpected costs; inability to obtain raw materials and components; and currency fluctuations. 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.
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