RELM Wireless Receives Contract Extension Totaling $1.9 Million
From the Transportation Security Administration
-Partial Exercise for First Option Year-
WEST MELBOURNE, FL, June 2, 2016 – 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.”