AIRPORT SYSTEMS RESUMES PRODUCTION OF AIRFIELD SIGNAGE; CURRENT BACKLOG TOTALS $1.0 MILLION.
Airport Systems temporarily suspended manufacturing and shipping completed airfield signs last month pending modifications to insure compliance with federal regulations regarding visibility in all signs and airport configurations.
"We currently have a backlog of approximately $1.0 million in airfield signage," stated Keith S. Cowan, president and chief executive officer. "Having received this re-certification, we now expect to ship substantially all of these orders during the current fiscal quarter which ends April 30, 1995. This resumption will add positive momentum to our business during this final period of our 1995 fiscal year." Cowan noted that Airport Systems reported sales of $19.2 million in fiscal 1994. He said, "When we acquired the signage business in September 1994, annualized sales of these systems were approximately $3 million. The design improvements which have been implemented add to our confidence that these products will account for an increasing share of our total sales in the future.
"We successfully completed the necessary modifications well ahead of schedule. The initial estimate, early last month, was that this process would require 90 days. We are resuming manufacturing much sooner than that projection because of the concentrated efforts of Airport Systems' personnel. As a result of the improvements, the signage not only meets all visibility standards but also delivers what we believe is the lowest life-cycle cost available."
Airport Systems acquired the VomaGlow line of airfield signage in September 1994 from Vomar International, Inc. of Sepulvada, California. Airfield signage is used to direct aircraft along runways and taxiways and to terminals.
Cowan added, "We are vigorously pursuing an indemnity claim against Vomar International. We expect to recoup all design and retrofit costs which should be below the amount of guaranteed future payments withheld under the purchase agreement."
Airport Systems International, Inc. designs, manufactures, markets and installs ground-based radio navigational equipment (navaids) for aircraft and airfield signage. The Company's complete line of products providers aircraft with approach-to-landing, en-route, and airfield guidance, permitting safe navigation, landing and ground movement in all visibility conditions.
CONTACT: Airport Systems International, Inc., Overland Park
Thomas C. Cargin, 913/495-2614
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|Date:||Feb 10, 1995|
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