Giga-tronics, Incorporated (NASDAQ:GIGA) saw its shares take-off today after announcing that it has received an additional $4.9 million order extending ongoing production of its high performance RADAR filters for a major aerospace company. The Company expects to begin initial shipments of the new order during the fourth quarter of fiscal 2018 and complete the bulk of the new order shipments over the succeeding 9 to 12 month period.
As of this writing, Giga-tronics shares are up nearly 20% to $0.825. GIGA has a 1-year high of $1.09 and a 1-year low of $0.58. The stock’s 50-day moving average is $0.68 and its 200-day moving average is $0.78.
Suresh Nair, the Company’s Co-CEO stated, “We are pleased to continue to supply and service our customer needs in the high performance RADAR filter marketplace as they continue to upgrade their aircraft. As the sole source supplier of certain components within the high performance RADAR arena, we expect to continue our recent progress, addressing a market exceeding $30 million over the next few years.”
The Company is also providing guidance on the second quarter of fiscal 2018, which ended on September 30, 2017. Net sales for the second quarter are expected to be in the range of $2.0 million to $2.2 million, compared to the $2.0 million reported in the first quarter of fiscal 2018 and $4.4 million reported in the second quarter of fiscal 2017. The foregoing guidance is based on management’s current review of operations for the second quarter of FY 2018, and remain subject to change based on actual results, and subject to review by the Company’s independent accountants.
Suresh Nair, the Company’s Co-CEO stated, “We continued to experience delays in receiving certain expected orders for our Real-Time Threat Emulation Systems during the second quarter and the first half of fiscal 2018 which we believe are due in part to the complexity of closing high value capital equipment orders. As a result, we expect revenue for the second quarter to be flat relative to Q1 of the current fiscal year and considerably lower as compared to the same quarter in fiscal 2017. These anticipated orders are now expected to be received during the third and fourth quarters of fiscal 2018. In spite of these delays, we are pleased with the receipt of the $4.9M order for RADAR filters and are gratified that our customer continues to trust and select us to provide their RADAR filters.”
Giga-tronics through its subsidiaries, designs, manufactures and markets the signal generator for the electronic warfare market, and switching systems that are used in automatic testing systems primarily in aerospace, defense and telecommunications. It also develops and manufactures a broad line of yttrium, iron, garnet tuned oscillators, filters and microwave synthesizers, which are used by its customers in operational applications and in manufacturing a wide variety of microwave instruments and devices. The company operates through two segments: Giga-tronics and Microsource. The Giga-tronics segment produces a line of test and measurement equipment used primarily for the design, production, repair and maintenance of products in aerospace, telecommunications, radar, and electronic warfare. The Microsource segment develops and manufactures yttrium, iron, garnet RADAR filters used in fighter jet aircraft for defense and commercial aerospace.