Shares of Northstar Electronics, Inc. (OTCBB: NEIK) were trading up 5 cents (63 percent) at 13 cents per share on volume of 251,800. The company announced today that Lockheed Martin (NYSE: LMT) awarded a contract to its wholly-owned subsidiary, Northstar Network Ltd., for work on the P-3 Orion maritime patrol aircraft.
The contract runs through 2012, covers 48 aircraft, and has a value of approximately $6.31 million. This contract should brighten the spirits of shareholders considering Northstar’s current market cap of $3.25 million and its 2006 revenues of $1.46 million.
“Northstar will be responsible for supplying approximately 600 parts and assemblies per aircraft,” said Dr. Wilson Russell – chief executive of Northstar Electronics – in a press release. “We will be producing enhanced design components using new and improved corrosion resistant materials.”
Northstar will manufacture components for new production service life extension kits for this Lockheed Martin Service Life Extension Program. These components will add more than 15,000 flying hours to each aircraft, representing 15 to 20 additional years of service for this critical maritime patrol and reconnaissance resource.
Northstar’s affiliate CHC Composites Inc., a division of CHC Helicopter Corporation (NYSE: FLI), will be the key subcontractor on this program.
Northstar Electronics, through its subsidiaries, Northstar Technical Inc. and Northstar Network Ltd., provides electronics products to the marine industry and provides engineering, prototyping and production services to the defense and homeland security industries.
Market News First contacted Northstar Electronics and will follow-up with a feature story on this interesting company.