2. Significant Events and Transactions

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 2 - Significant Events and Transactions

In September 2015, the Company received awards under the U.S. Department of Homeland Security (DHS) Tactical Communications Contract totaling approximately $26.2 million for portable radios, repeaters, accessories and service.  The equipment will be deployed by the U.S. Transportation Security Administration (TSA) at over 400 airports both inside and outside the continental United States.  The awards were for a base term of one-year that commenced on September 28, 2015 with four one-year options.  The first option year was partially exercised immediately.  Approximately $15.5 million, or almost 60% of the total amount, was specified in delivery orders.  Shipments under the delivery orders commenced in the first quarter of 2016, resulting in $3.3 million of sales. The remainder of the delivery orders is anticipated to be fulfilled on or before September 30, 2016.  The exercise, if any, of the remaining option years, which total $10.7 million, is not specified or guaranteed.