RICHARDSON, TX - Optex Systems Holdings, Inc. (NASDAQ:OPXS), a manufacturer specializing in precision optical sighting systems, has secured a $3.8 million contract to supply the U.S. Government with components for the Armored Multi-Purpose Vehicle (AMPV). The company, which is the exclusive supplier of laser protected periscopes for this project, will begin deliveries over a period of 14 months starting today.
The AMPV is a pivotal project for the U.S. Army, aimed at enhancing troop transportation capabilities within the Armored Brigade Combat Team (ABCT). The vehicle is designed to operate in conjunction with the M1 Abrams tank and the M2 Bradley, as part of the Army's strategy to improve protection, mobility, reliability, and interoperability.
Danny Schoening, CEO of Optex Systems, highlighted the significance of the contract, stating that the AMPV is "essential to the future of the ABCT." This new order brings Optex's current backlog to over $47 million.
Founded in 1987 and based in Richardson, Texas, Optex Systems has a long-standing relationship with the Department of Defense (DOD). The company's products are featured on a variety of U.S. military land vehicles and are also supplied to prime contractors. Optex's portfolio includes a range of periscopes, rifle and surveillance sights, and night vision optical assemblies.
The press release also contains forward-looking statements regarding the company's future events, which are subject to risks and uncertainties. These include variables such as defense funding, market conditions, technological changes, and economic trends that could impact the actual results of Optex Systems.
Investors and interested parties should note that this article is based on a press release statement and that actual future results may vary materially from the company's projections.
InvestingPro Insights
Optex Systems Holdings, Inc. (NASDAQ:OPXS) has demonstrated a robust financial performance with several positive indicators that investors might find encouraging. With a market capitalization of $48.47 million, the company has shown a strong revenue growth of 29.45% over the last twelve months as of Q1 2024. This growth is further underscored by an impressive quarterly revenue growth of 72.48%, reflecting the company's ability to expand its earnings significantly.
The stock has also experienced substantial appreciation with a one-year price total return of 147.2%, which aligns with the InvestingPro Tips indicating a high return over the last year and a large price uptick over the last six months.
These metrics suggest that investors have recognized the company's value and prospects. Moreover, with a P/E ratio of 16.62, Optex Systems trades at a level that may be considered reasonable in relation to its earnings, which could appeal to value-oriented investors.
InvestingPro Tips further highlight that Optex Systems operates with a moderate level of debt and has liquid assets that exceed its short-term obligations. This financial stability is crucial for the company as it undertakes significant contracts like the one for the AMPV project. Additionally, the company's cash flows are strong enough to cover interest payments, which is a positive sign for its creditworthiness and financial health.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights on the company's profitability over the last twelve months and its strong return over the last three months. To explore these tips and more, visit https://www.investing.com/pro/OPXS and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional tips listed in InvestingPro that could provide further valuable insights into Optex Systems' financial performance and investment potential.
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