FIX and REPLACE Tel-Instrument Electronics Corp. Reports Second Quarter 2022 Net Income of $ 1.0 Million

EAST RUTHERFORD, NJ, November 15, 2021– (BUSINESS WIRE) – Please replace version with the following corrected version due to multiple revisions.

The updated version reads as follows:

TEL-INSTRUMENT ELECTRONICS CORP. ANNOUNCES NET EARNINGS OF $ 1.0 MILLION FOR THE SECOND QUARTER OF 2022

Tel-Instrument Electronics Corp. (“Such” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported net income of $ 1.0 million (0 , $ 28 per common share) on income of $ 3.6 million for the second quarter of fiscal 2022 ended September 30, 2021.

Highlights include:

• Second quarter revenue increased to $ 3.6 million, an 8% increase from the prior year quarter.

• Gross margin percentages improved by 46.2% due to manufacturing efficiency, tight cost controls and product line pricing.

• Quarterly operating expenses increased 25% to $ 1.3 million due to higher engineering and profit sharing expenses.

• Operating income increased to $ 385,000 for the current quarter, compared to $ 342,000 in the quarter last year.

• Six-month operating profit increased to $ 1,151,000 from $ 551,000 in the prior year period.

• The Company obtained a total loan forgiveness on the second PPP loan of $ 722,000.

• Net income increased to $ 1.0 million, or $ 0.28 per common share and $ 0.20 per share on a fully diluted basis.

• Cash balances improved to $ 6.8 million from $ 5.5 million at the start of the year.

• Net worth improved to $ 6.6 million from $ 5.2 million at the start of the year.

Mr. Jeffrey O’Hara, President and CEO of Tel-Instrument commented, “The company had a profitable second quarter despite continued supply chain disruptions that hampered our production. With the recent cancellation of the PPP loan, we now have no debt and a growing cash balance which has allowed us to continue our aggressive engineering programs such as SDR / OMNI. We have started marketing this product to key customers whose production and deliveries are expected to begin in the first quarter of calendar year 2022. We believe it will be a strong competitor in the commercial and military markets. We were informed this week that Lockheed Martin has lifted the stop work order on the MADL program. This will generate one-time engineering revenue over the next two quarters and is expected to translate into production revenue in what is essentially a new market for TIC. We are also actively working with the US Navy on a “mid-life” update to our CRAFT test sets that would generate significant revenue over the next five to ten years. We also continue to invest in our market-leading Mode 5 products and have successfully demonstrated new Mode 5 Level 2B testing capabilities at an international military testing event. This new Mode 5 capability could potentially lead to future software upgrades of all of our Mode 5 test sets in the field.

The story continues

“With respect to the Aeroflex litigation, we continue to believe that we have strong grounds for the price to be waived or reduced. The appeal process has been delayed due to the COVID-19 pandemic, but we expect a decision within the next 12 months. “

About Tel-Instrument Electronics Corp.

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation and aerospace and government / military defense markets. Tel-Instrument provides instruments for testing, measuring, calibrating and repairing a wide range of airborne navigation and communication equipment. For more information, please visit our website at www.telinstrument.com.

This press release includes statements which are not historical in nature and may be qualified as “forward-looking statements”, including those relating to future financial and operational results, benefits and synergies of the combined companies, statements regarding the prospects of the company, pricing trends, and strengths within the industry, completion dates of investment projects, expected sales growth, cost reduction strategies and their results, long term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions relating to matters which are not historical facts. All forecasts of future results contain a measure of uncertainty and, therefore, actual results could differ materially. Factors that may make a difference include: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our clients; technological change; changes in employee relations; government regulations; the dispute, including its inherent uncertainty; difficulties in plant operations and materials; transport, environmental issues; and other unforeseen circumstances. A number of these factors are discussed in previous filings by the Company with the United States Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The Safe Harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the “Act”) protects companies from any liability for their forward-looking statements if they comply with the requirements of the Act.

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Contacts

Pauline Romeo
Tel-Instrument Electronics Corp.
(201) 933-1600