WEST MELBOURNE, Fla., Oct. 23, 2013 /PRNewswire/ -- RELM Wireless Corporation (NYSE MKT: RWC) today announced that it was awarded two delivery order contracts from an agency of the U.S. Department of Homeland Security (DHS). These contracts were awarded under the DHS Tactical Communications (TacCom) Contract, which was originally issued in March 2012.
The contracts specify RELM's KNG VHF and UHF portable and mobile radios with accessories and have an aggregate maximum total value of $9.5 million. Each contract has a base period that commenced on September 25, 2013 and extends through July 31, 2014, and includes three one-year option periods from August 1, 2014 through July 31, 2017. The contracts stipulate a firm obligation totaling $13,800 to be delivered within 60 days after the effective date. They do not otherwise obligate the agency to specific purchase quantities or delivery dates.
RELM President and Chief Executive Officer David Storey commented, "We are extremely pleased with these contract awards. The awarding agency is a new customer, and one that we have been courting for a number of years."
Mr. Storey continued, "RELM was named to TacCom over a year ago and we have long believed that it could be a catalyst for driving sales growth. If the full value of the contracts is realized, they may ultimately become the largest piece of business that RELM has yet received under TacCom, going a long way toward validating our vision for the TacCom contract. Our mission now is to meet the customer's criteria and fulfill their initial obligation. Thereafter, we intend to leverage our strengths of customer service and product quality to obtain orders to maximize the full value of the contracts as quickly as possible."
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 more than 65 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; fluctuation in our operating results; acts of war or terrorism; any infringement claims; provisions in our charter documents and under Nevada law that may discourage a potential takeover; 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, 2012 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.