WEST MELBOURNE, Fla., June 2, 2016 /PRNewswire/ -- RELM Wireless Corporation (NYSE MKT: RWC) today announced that the Transportation Security Administration (TSA) of the U.S. Department of Homeland Security has exercised a portion of the first option year for its contract with RELM, and placed an order for additional equipment and services totaling approximately $1.9 million. Also, the contract term has been extended for one additional year to September 27, 2017. Precise dates for deliveries are not specified.
The initial contract awarded in September 2015 totaled $26.2 million, which was comprised of $15.5 million in firm delivery orders and $10.7 million in potential option exercises. In February 2016 the TSA ordered $4.2 million of accessories in addition to the contract. Accordingly, the cumulative amount of firm orders from the TSA since the contract inception now totals approximately $21.6 million. The remaining unexercised options periods that are available to the TSA through September 2020 total approximately $8.8 million.
RELM President and Chief Executive Officer David Storey commented, "We are pleased that TSA has elected to extend its contract with RELM. The deployment of equipment and services during the first year has gone well and according to schedule. Additionally, feedback from TSA personnel at various levels has been very positive. We look forward to continue impressing this important customer and extending our relationship for the full duration of all the option years."
About APCO Project 25 (P25)
APCO Project 25 (P25), which requires interoperability among compliant equipment regardless of the manufacturer, was established by the Association of Public-Safety Communications Officials and is approved by the U.S. Department of Homeland Security. The shift toward interoperability gained momentum as a result of significant communications failures in critical emergency situations. RELM was one of the first manufacturers to develop P25-compliant technology.
About RELM Wireless Corporation
As an American Manufacturer for almost 70 years, RELM Wireless Corporation has produced high‑specification two‑way communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications. Advances include a broad new line of leading digital two‑way radios compliant with APCO Project 25 specifications. RELM's products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.relm.com or directly at 1‑800‑821‑2900. The Company's common stock trades on the NYSE MKT market under the symbol "RWC".
This press release contains certain forward-looking statements that are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act Of 1995. These forward-looking statements concern the Company's operations, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, the following: changes or advances in technology; the success of our LMR product line; competition in the land mobile radio industry; general economic and business conditions, including federal, state and local government budget deficits and spending limitations; the availability, terms and deployment of capital; reliance on contract manufacturers and suppliers; heavy reliance on sales to agencies of the U.S. government; our ability to utilize deferred tax assets; retention of executive officers and key personnel; our ability to manage our growth; government regulation; business with manufacturers located in other countries; our inventory and debt levels; protection of our intellectual property rights; acts of war or terrorism; any infringement claims; maintenance of our NYSE MKT listing; and the effect on our stock price and ability to raise equity capital of future sales of shares of our common stock. Certain of these factors and risks, as well as other risks and uncertainties, are stated in more detail in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and in the Company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
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SOURCE RELM Wireless Corporation