Significant Events and Transactions (Policies)

6 Months Ended

Jun. 30, 2012

Significant Events And Transactions Policies

Income Taxes

In June 2012 the Company received a blanket purchase agreement (BPA) from the U.S. Bureau of Land Management (BLM) for its new KNG-Series and legacy D-Series digital P25 portable radios, mobile radios and related accessories, operating in the VHF frequency band.  The BPA has a maximum total value of $2.1 million, with a one-year base period and four one-year option periods.  The value for the base period totals approximately $390.  The values for each of the option periods are $448, $371, $422 and $515, respectively.  An order for the entire base period was received and fulfilled in June 2012.

In June 2012 the Company received orders totaling approximately $2.0 million from the U.S. Department of Agriculture Forest Service (USFS) and the National Interagency Fire Center (NIFC).  The orders were for RELM’s D-Series digital P-25 portable and mobile radios with accessories.  The orders were fulfilled during the second quarter 2012.

In May 2012 the Company received an international order totaling approximately US$1.0 million for P25 KNG UHF portable radios and related products from the Company’s Australian dealer.  The radios will be fielded in military bases by Australian Defence Industries.  The order was fulfilled during the second quarter of 2012.  This was the Company’s second order for applications within Australian Defence Industries, following an initial order received in 2011.

In May 2012 the Company received an order from Harris County, Texas (Houston) totaling approximately $2.0 million for P25 digital 800MHz portable trunked radios (KNG P800) with related accessories and features.  The radios are being deployed for use by county law enforcement professionals.  Approximately $1.6 million of the order was fulfilled during the second quarter of 2012.