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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 7, 1996
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AIRPORT SYSTEMS INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Kansas 0-22760 48-1099142
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(State or other jurisdiction (Commission (IRS Employer
of incorporation or File Number) Identification No.)
organization)
11300 West 89th Street
Overland Park, Kansas 66214
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(Address of principal executive offices)
(913)492-0861
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On November 7, 1996, Airport Systems International, Inc. signed a $17.7 million
contract with the Republic of Indonesia for the delivery of 19 DVOR's (Doppler
VHF Omni Range equipment) and 22 DME's (Distance Measuring Equipment). The
turnkey contract also provides installation, flight inspection, training and
other support services over a two-year period. The text of the press release
announcing this contract follows.
This release contains forward-looking statements based on current expectations
that involve a number of risks and uncertainties. Actual results could differ
materially from those projected or suggested in any forward-looking statement
as a result of a wide variety of factors and conditions, including, but not
limited to the timely completion of financing for the project through the
Export/Import Bank of the United States and competitive and pricing pressures
related to other contracts. Further information on the factors that could
affect the Company's financial results are included in the Company's SEC
filings, including the Form 10-QSB for the quarter ended July 31, 1996, and the
Form 10-KSB for the year ended April 30, 1996.
Contact: Thomas C. Cargin
Vice President - Finance and Administration
(913) 495-2614
AIRPORT SYSTEMS AWARDED
MAJOR NAVAID CONTRACT WITH INDONESIA
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TWO-YEAR CONTRACT VALUED AT $17.7 MILLION
OVERLAND PARK, Kansas (November 7, 1996) - Airport Systems International, Inc.
(Nasdaq/NM:ASII) today announced that it has signed a $17.7 million contract
with the Republic of Indonesia for the delivery of 19 DVORs (Doppler VHF Omni
Range equipment) and 22 DMEs (Distance Measuring equipment). The turnkey
contract also provides installation, flight inspection, training and other
support services over a two-year period.
"This represents the largest contract ever for Airport Systems as well
as an important milestone in our strategic plans to extend the Company's longer
term record of growth," remarked Keith S. Cowan, president and chief executive
officer. "We expect financing for the project to be finalized over the next
several months, at which time the contract will be formally considered to be in
our backlog. Our goal is to commence work on the Indonesian contract early in
calendar 1997."
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Cowan noted that the Indonesian project, once finalized, will
represent more than a threefold increase in the Company's backlog which
currently approximates $6 million and that the contract value is 125% of fiscal
year 1996 sales of $14.2 million. He remarked, "The magnitude of this contract
clearly will have a significant positive impact on our financial performance
over the next two years. Our role as the prime contractor for this program will
improve our qualifications for performing similar turnkey projects in the
future. Further, our selection for this project as well as other recent awards
we have received, firmly reinforce our position as the leading supplier of
navigation systems to the Asia/Pacific region.
"We appreciate the outstanding support provided by the U.S. Government
which was a critical factor leading to our selection over much larger foreign
competitors. Important assistance was received from the Export/Import Bank of
the United States, the U.S. Trade Development Agency, the U.S. Department of
Transportation and Secretary Federico Pena, and the U.S. Department of Commerce
and Secretary Mickey Kantor. These agencies helped insure that the jobs related
to this program will be American jobs," he concluded.
Michael M. Warner, vice president - business development, said, "This
contract with the Directorate General of Air Communications will result in a
significant enhancement to the air navigation system within Indonesia and that
geographic region. The contract also marks an encouraging start to what we
believe will be a pattern of other new navaid awards internationally. Recent
signs point to encouraging headway on a number of major construction projects
which involve new airports or significant upgrades and expansion of existing
facilities. In Indonesia and the Asia/Pacific region alone, we believe the
potential for navaid business over the next several years exceeds $200
million."
Airport Systems International, Inc. designs, manufactures, markets
and installs ground-based equipment (navaids) and airfield signs to aid the
in-flight navigation and ground movement of aircraft. The Company's products
are used worldwide to guide the navigation of aircraft in various phases of a
flight and in all visibility conditions.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AIRPORT SYSTEMS INTERNATIONAL, INC.
November 15, 1996 /s/ THOMAS C. CARGIN
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Date Thomas C. Cargin, Vice President of Finance and
Administration, Secretary, and Principal Accounting
Officer
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