Orbit concludes a quarter with a 22% increase in net profit

Orbit concludes a quarter with a 22% increase in net profit
Orbit concludes a quarter with a 22% increase in net profit

The company’s revenues fell slightly to $ 12.7 million; The backlog of orders at the end of the quarter stands at $ 41 million

Orbit Technologies, which specializes in satellite communications, tracking systems and aircraft communication and audio management systems, announced its financial results for the third quarter of 2020 that reflect an improving trend in the company’s profitability despite a slight decline in revenue.

Revenues in the third quarter totaled approximately $ 12.7 million, compared to approximately $ 13.3 million in the corresponding quarter last year. Revenues in the first nine months of 2020 amounted to approximately $ 36.4 million, compared with approximately $ 38.4 million in the corresponding period last year.

The decrease in the company’s sales is mainly due to the slowdown in receiving orders for products whose delivery was supposed to take place in the third quarter due to the corona crisis. At the end of the third quarter, the company received additional orders, including an order from Lockheed Martin for the development and production of communication and audio systems for the F-16 aircraft for approximately $ 6 million and an order from an American aircraft manufacturer to upgrade digital audio systems for approximately $ 1.5 million.

Gross profit in the third quarter of 2020 amounted to $ 4.8 million (38% of total revenues) compared to gross profit of about $ 4 million in the corresponding quarter last year (30.3% of total revenues). The rate of gross profit from total revenues in the third quarter increased compared to the corresponding quarter as a result of a change in the revenue mix and an improvement in operating efficiency.

Gross profit in the first nine months of 2020 amounted to approximately $ 11.7 million (32.1 %% of total revenues) compared to gross profit of approximately $ 12.1 million (31.4% of total revenues) in the corresponding period last year.

Operating profit in the third quarter grew by approximately 42.9% and amounted to approximately $ 1.8 million, compared with operating profit of approximately $ 1.3 million in the corresponding quarter last year. In the first nine months, operating profit amounted to $ 3.4 million, an increase of about 22.8% compared to operating profit of about $ 2.8 million in the corresponding period last year.

EBITDA for the quarter grew by approximately 24.3% and amounted to approximately $ 2.4 million, compared to approximately $ 2 million in the corresponding quarter last year. EBITDA in the first nine months increased by approximately 11.5% and amounted to approximately $ 5.4 million compared to approximately $ 4.8 million in the corresponding period.

The quarterly net profit grew by about 21.8% and amounted to about $ 1.4 million compared to about $ 1.1 million in the corresponding quarter last year. In the first nine months of the year, net income increased by approximately 29.2% and amounted to approximately $ 2.8 million, compared with approximately $ 2.2 million in the corresponding period last year.

The backlog as of the end of the third quarter stands at $ 41 million, compared to the backlog of $ 47.8 million at the end of 2019. As of the end of the third quarter, the company has framework agreements in the amount of approximately $ 60 million that are not included in the reported backlog.

The Company’s shareholders’ equity on September 30, 2020 amounted to approximately $ 33.8 million, which constitutes approximately 60% of the balance sheet, compared to equity of approximately $ 30.9 million, which constitutes approximately 54.9% of the balance sheet at the end of 2019.

Daniel Eshhar, CEO of Orbit, said: In the third quarter of 2020, we continued to implement the strategy of focusing on projects that constitute growth engines while receiving significant and stable orders and increasing market share, both in the defense and civilian markets. Dollars with the American aircraft manufacturer, Lockheed Martin, which expresses our strategy – long-term relationship with a strategic customer, advanced technological development, service and maintenance and future potential for additional orders.

Out of the framework agreement with Lockheed Martin, an order of approximately $ 6 million was received after the end of the quarter. During the third quarter, we continued to become more efficient and improved our profitability, and we are working hard to increase the backlog. As of the end of the third quarter, we have framework agreements in the amount of approximately $ 60 million that are not included in the reported aggregate and we believe that Orbit is well positioned technologically and operationally to realize the business goals we set for ourselves later this year and in the future. “

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