PALO ALTO, Calif., Jan 26, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Communications & Power Industries, Inc. (CPI), a subsidiary of CPI International, Inc. (Nasdaq: CPII), a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications, has been selected by Raytheon Company (NYSE: RTN) and awarded an initial contract of more than $1 million to support the pre-production phase of the U.S. Navy's Multiband Terminal (NMT) program. Through a competitive-bidding process, Raytheon Network Centric Systems selected CPI's high-power X-band SuperLinear(TM) traveling wave tube amplifier for the NMT military satellite communications (satcom) program. If all option years' production and spares are exercised, CPI expects the total cumulative value of the approximately four-year program to be in excess of $20 million.
Under a contract from the U.S. Navy, Raytheon Network Centric Systems developed and supports the NMT advanced satcom system, consisting of shipboard and shore-based communication terminals for the transformational communications component of the U.S. Navy's FORCEnet architecture. The NMT solution, which is expected to provide the next generation of satcom systems, replacing several existing satcom systems, adds significant new maritime communications capability to ships, submarines and shore stations.
"We are delighted by Raytheon's selection of CPI high-power amplifiers to support such a critical military satcom program," said Joe Caldarelli, chief executive officer of CPI. "CPI's high-power SuperLinear traveling wave tube amplifier provides exceptional power efficiency, extremely long life and advanced control and monitor capabilities while operating in a rugged environment, and we are proud to provide this advanced, state-of-the-art technology for the U.S. Navy's Multiband Terminals."
CPI's Satcom Division and Microwave Power Products Division will perform work on this contract. CPI expects to make the first shipments under this contract in the first half of fiscal 2009.
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, 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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