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29 Dec 21. Taylor Devices, Inc. (NASDAQ SmallCap: “TAYD”) announced today that it had 2nd quarter Net earnings of $659,804, up slightly from last year’s 2nd quarter Net earnings of $645,290. Net earnings for the 1st six months were $841,681, also up slightly from last year’s Net earnings for the 1st six months of $821,301.
Sales for the 2nd quarter were $7,757,986, up 64% from last year’s 2nd quarter sales of $4,717,597. Sales for the 1st six months were $15,065,723, up 44% from last year’s 1st six-month sales of $10,477,054.
“Our FY22 2nd quarter and 1st Half sales finished not only significantly better than last year’s levels respectively but also in line with more recent pre-pandemic sales volumes,” stated Tim Sopko, CEO. He further commented, “These higher volumes, including increased sales to our domestic customers, resulted in improved Net earnings from last year’s levels despite the unprecedented material and labor cost escalations that we continue to see due to COVID-19.” He continued, “While we are clearly not out of the COVID-19 “woods” yet, our customers and the markets we serve continue to show signs of recovery which is encouraging.”
He concluded, “As we turn the half-way point of our fiscal year, our priorities continue to be the health and safety of our employees and their families while we continue to deliver our critically needed components to our customers on time.”
The company’s firm order backlog was $17,000,000 at the end of the 1st six months of this fiscal year as compared to $15,400,000 at the end of the 1st six months last fiscal year.
Taylor Devices, Inc. is a 66-year old company engaged in the design, development, manufacture and marketing of shock absorption, rate control and energy storage devices for use in various types of vehicles, machinery, equipment and structures. The company continues to target growth in the domestic Aerospace and Defense market as well as global Structural Construction and Industrial markets.
(Source: PR Newswire)
29 Dec 21. Mercury Systems adopts anti-takeover tactic. Mercury Systems’ board of directors has approved a shareholder rights plan, commonly known as a poison pill, to prevent an unwelcome party from gaining control of the company, the US defence electronics supplier announced on 28 December.
Under the plan, if someone acquires 7.5% or more of Mercury’s common shares without the board’s approval, the company’s other shareholders will have the right to buy preferred shares at twice the market value of the common shares. The proliferation of shares can make a hostile takeover too expensive.
Mercury said the rights plan, which has a one-year duration, is needed to reduce “the likelihood that any person or group gains control of the company without paying full and fair value”. Mercury believes its shares, which trade on the Nasdaq stock exchange, are undervalued.
“The Mercury board unanimously adopted the rights plan to protect the investment of shareholders during a period in which it believes shares of the company do not reflect the inherent value of the business or its long-term growth potential,” the company said. (Source: Janes)
28 Dec 21. Giga-tronics, BitNile Holdings and Gresham Worldwide Sign Share Exchange Agreement. Agreement provides for the acquisition of Gresham Worldwide by Giga-tronics, which is expected to create a strong provider of bespoke electronic solutions for the defense industry. BitNile Holdings, Inc (NYSE American: NILE), a diversified holding company (“BitNile” or the “Company”) today announced that it has entered into a share exchange agreement (the “Agreement”) that will upon closing combine Giga-tronics Incorporated (OTCQB: GIGA), a manufacturer of specialized electronics equipment (“GIGA”), and Gresham Worldwide, Inc. (“GWW”), the global defense segment of BitNile. GIGA is a leading producer of sophisticated RADAR and electronic warfare threat emulation systems and ultra-reliable RF filters, whereas GWW is a global provider of proprietary, purpose-built electronic solutions to militaries and leading defense companies around the world in the areas of RF devices, power electronics, automated test and missile launch systems. The combined entity will upon closing of the Agreement continue as a standalone publicly traded company, approximately 68% of which will be indirectly owned by BitNile.
The companies expect the transaction to generate synergies that will enable the combined entity to significantly enhance their position in the rapidly growing market for electronic warfare and RF solutions, driven by a heightened global awareness of the importance of electromagnetic spectrum superiority. The combined entity will have over 60 global defense industry customers, combined revenues of approximately $40m and operations spanning the globe.
At the closing of the Agreement, GIGA will acquire GWW from BitNile in exchange for shares of GIGA common and preferred stock, BitNile will loan GIGA $4.25m and GIGA will repurchase or redeem its currently outstanding shares of preferred stock. Current outstanding shares of GIGA common stock will remain outstanding. The transactions are subject to the approval of GIGA’s shareholders and other customary conditions. The parties expect GIGA to complete the acquisition of GWW during the first quarter of 2022. After the combination, GIGA will be a majority-owned subsidiary of Ault Alliance.
“GWW aims to drive growth, both organically and through strategic combinations with similar providers of bespoke technology solutions for defense customers,” commented Jonathan R. Read, Chief Executive Officer of GWW. “Joining with GIGA, a well-established leader in key technologies for defense applications, enables GWW to better serve customers in our core markets and unlock synergies across our operating subsidiaries. This combination expands GWW’s presence in the US defense market by adding strong management, innovative technology, and more engineering resources to benefit investors, customers, and employees alike. We also gain access to the public capital markets that will allow for more creative growth strategies.”
BitNile previously announced a plan to split into two public companies by distributing the equity of Ault Alliance to its stockholders. Following the spin-off of Ault Alliance, the Company, through its BitNile, Inc. subsidiary, will be a pure-play provider of Bitcoin mining and data center operations, pursuing DeFi-related initiatives. Ault Alliance will maintain its focus on the Company’s legacy businesses and more recently initiated operations, including lending and investing in the real estate and distressed asset spaces as well as, among others, defense, and power solutions, including electric vehicle charging products.
BitNile’s Founder and Executive Chairman, Milton “Todd” Ault, III stated, “This transaction validates our strategy of investing to acquire and strengthen quality companies that build value for BitNile shareholders.” He added, “We remain optimistic on the prospects for the combined company.”
For more information on BitNile Holdings and its subsidiaries, BitNile recommends that stockholders, investors, and any other interested parties read BitNile’s public filings and press releases available under the Investor Relations section at www.BitNile.com or available at www.sec.gov.
About BitNile Holdings, Inc.
BitNile Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, BitNile owns and operates a data center at which it mines Bitcoin and provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, automotive, telecommunications, medical/biopharma, and textiles. In addition, BitNile extends credit to select entrepreneurial businesses through a licensed lending subsidiary. BitNile Holdings’ headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.BitNile.com.
About Gresham Worldwide Incorporated
Gresham Worldwide, Inc. is a private holding company that owns Enertec Systems 2001 Ltd, RELEC Electronics Ltd, Microphase Corporation and Gresham Power Electronics Ltd. Gresham Worldwide offers innovative, market leading solutions for electronic warfare, power conversion and electronics, RF solutions, electronic countermeasures, drone and robotics technologies. Gresham Worldwide and its subsidiaries primarily support the defense and aerospace industry as well mission critical applications in transportation, industrial and medical technology market sectors. (Source: BUSINESS WIRE)
27 Dec 21. Vehicle maker Iveco nears becoming standalone company. Shareholders of UK-based conglomerate CNH Industrial have approved a plan to spin off ground vehicle manufacturer Iveco Group as a separate, publicly held company, CNH announced on 23 December.
Iveco will become a standalone entity on 1 January 2022, and its shares will begin trading on the Euronext Milan stock exchange under the “IVG” symbol two days later, CNH said. Shareholders will receive one Iveco share for every five CNH shares they own.
The new company will make defence and commercial vehicles, as well as buses and fire trucks. It will be based in Turin, Italy, and employ about 33,500 people in 36 countries. It aims to generate revenue of EUR16.5–17.5bn (USD18.7–19.8bn) in 2026, up from EUR11.8bn in 2019. CNH executive Gerrit Marx will become Iveco’s CEO.
CNH unveiled the “de-merger” plan in September 2019, saying Iveco could perform more effectively as an independent company. It had hoped to complete the process by early 2021 but was delayed by the Covid-19 pandemic. (Source: Janes)
27 Dec 21. Orbit acquires Euclid System Engineering. Euclid specializes in the development of positioning systems for the defense industries, which include precise, small and lightweight positioning and tracking systems. Orbit Communication Systems Ltd. (TASE: ORBI), a leading global provider of maritime and airborne SATCOM terminals, tracking ground station solutions, and mission-critical airborne audio management systems announced today that it has entered into an agreement to purchase 100% of the issued and repaid capital of Euclid System Engineering Ltd., which specializes in the development of smart, small and lightweight positioners & tracking systems for the defense industries.
Orbit Communication Systems acquires Euclid System Engineering
This transaction is part of Orbit’s plans to expand and complete the portfolio of products that the company currently offers to its customers. Orbit intends to invest in maximizing the synergy between the activities and capabilities that exist in the company today and Euclid’s current and future activities.
Daniel Eshchar, CEO of Orbit, said: “This transaction is in line with Orbit’s strategy for both organic and inorganic growth in the company’s core areas, while expanding our product portfolio and solutions to additional content worlds that require precise, small and lightweight positioners systems such as unmanned airborne and satellite applications, sea and land vehicle systems.”
About Orbit Communication Systems:
Orbit Communication Systems Ltd. (TASE: ORBI), a leading global provider of airborne communications and satellite-tracking maritime and ground-station solutions, is helping to expand and redefine how we connect. You’ll find Orbit systems on airliners and jet fighters, cruise ships and navy vessels, ground stations and offshore platforms. We deliver innovative, cost-effective and highly reliable solutions to commercial operators, major air forces and navies, space agencies and emerging New Space companies.
Orbit is a public company traded on the Tel Aviv Stock Exchange under the control of the Fimi Investment Fund. The company’s operations are spread globally, with production, marketing, sales and customer service, including a presence in the US, Europe and the Far East.
For more information, please visit http://orbit-cs.com/
About Euclid System Engineering:
Euclid System Engineering was established in 2006, developing a wide variety of solutions for the defense industry, the motion control market, and customized products.
Euclid specializes in smart positioners & tracking systems and together with Euclid Tracking System USA support a wide range of applications.
Euclid’s high-quality positioning systems are ready to use on various field applications and comply with ISO-9001 standard qualified.
Euclid’s state of the art positioners and tracking systems combined with RF modules and tracking controllers are in service around the world since 2007 under the most extreme weather conditions.
https://www.euclid-eng.com/ (Source: PR Newswire)
24 Dec 21. Babcock sells power business for £50m as it continues to streamline group. Defence giant which operates Plymouth’s Devonport Dockyard makes another disposal as it continues with turnaround plan. Devonport Dockyard operator Babcock International Group Plc has sold its power division to an infrastructure services provider for £50m as it continues to streamline the business. The defence and aerospace giant has offloaded its power business, a leading provider of engineering services in the UK overhead line electric transmission and distribution industry, to Stevenage-based M Group Services, which works in the water, energy, transport and telecommunications sectors. The power business delivers high quality work for clients including National Grid, Scottish Power Energy Networks and Western Power Distribution.
Back in profit
A part of Babcock’s Land sector, for the year ended March 31, 2021, it reported total revenues of £70m and profit before interest and tax of about £7m before allocated overheads
Following the sale, the business will form part of Morrison Energy Services, a division of M Group Services.
The disposal is the latest made by Babcock as it continues to work on a “turnaround plan” to tackle financial losses made during the Covid period.
It has already sold marine division business Frazer-Nash Consultancy to KBR, an American engineering giant, for £293m, shortly followed by offloading its stake in aviation services company AirTanker Holdings Ltd for £126m. Meanwhile, the UK’s competition watchdog has been probing Babcock’s £10m sale of its oil and gas aviation business. The Competition and Markets Authority (CMA) is assessing whether the deal, which would see helicopter services specialist CHC Group LLC acquire a business that ferries crew to offshore oil platforms by helicopter, might cause a substantial lessening of competition in the UK.
David Lockwood, Babcock chief executive, said: “I’m delighted that we continue to make real strides in delivering our plan of streamlining the group. The business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations.”
Babcock has jumped back into profit after recovering from the effects of the Covid pandemic – with its £2bn Devonport rebuild helping the turnaround.
The group’s half-year results for the six months to September 30, 2021, showed it made a statutory operating profit of £75.4m compared to a £785.3m loss in the prior year. (Source: Google/https://www.business-live.co.uk/)
23 Dec 21. Leonardo calls on EU to add defence to sustainable investment list. Italian aerospace and defence group Leonardo (LDOF.MI) called on the European Commission to avoid putting investments in the defence sector on the “naughty list”, urging it instead to label the industry as sustainable rather than socially harmful. Brussels is preparing to publish its classification system for green investments early next year as investors become more conscious about sustainability and some industries are worried about the negative consequences for future funding.
“If the defence industry is put on the naughty list… the money will go elsewhere,” Leonardo’s Chief Financial Officer Alessandra Genco said.
“This is particularly true for thousands of small and medium enterprises in Europe, which have less bargaining power with banks than big groups, such as Leonardo,” she said.
Leonardo this year secured a total of 3bn euro ($3.39bn) bank financing whose costs are tied to reaching several sustainability targets, making ESG-linked credit half of the group’s sources of funding. read more
“We want to expand further the portion of our ESG-linked financing towards 100%, but this will be only possible if defence is considered among the sustainable activities,” Genco said.
A spokesman for the European Commission declined to comment.
The EU is also considering launching a “social taxonomy”, to define which economic activities contribute positively to society and those that do not.
A draft report on the social taxonomy by EU’s expert advisers grouped weapon production together with tobacco and gambling as harmful sectors.
Difficult access to capital markets would mean less investments in technology and innovation from the defence industry and the risk of weakening the sector at a time when EU member states are discussing greater collaboration on security, Leonardo’s Genco said.
“You can have a healthy environment without Co2, but if you live in a place under terrorist attack, I’m sorry but it won’t do you much good,” Genco said. ($1 = 0.8849 euros) (Source: Google/Reuters)
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TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.
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