Giga-tronics (GIGA) Stock More than Doubles on Lockheed Martin Deal
Shares of Giga-tronics Inc. (GIGA) were trading up +1.44 or +129.73 percent to $2.55 per share in Tuesday’s premarket after the company announced early this morning that it had entered into a strategic software licensing agreement with Lockheed Martin (LMT). Giga-tronics stock closed at $1.11 per share, unchanged on the day in Monday’s regular trading session.
Founded in 1985, San Ramon, California based Giga-tronics Inc.
The company’s test equipment is used worldwide to increase productivity and facilitate uses in many applications including, aerospace and defense, ATE systems and general microwave component testing. Giga-tronics main product lines include MicroSource microwave components and subsystem products and the ASCOR ATE Signal Switching and signal routing products.
The strategic software licensing agreement with Lockheed Martin announced this morning will have Giga-tronics develop and license its threat simulation software into a commercial product for sale domestically. The new software will provide advanced capability to simulate threat environments in the company’s new Advanced Signal Generator Hardware Platform.
Giga-tronics expects to ship the Advanced Signal Generator Hardware and the new software within six months. The software and hardware package will be distributed and sold exclusively to customers in the United States as a Real Time Threat Emulation System.
Giga-tronics President and CEO, John Regazzi, stated in this morning’s press release that, “Lockheed Martin was one of the initial Advanced Signal Generator customers, this partnership demonstrates their belief in its potential and capabilities.”
Giga-tronics Vice President of Marketing Mark Elo said that, “This is a win for the Electronic Warfare community, Lockheed Martin and Giga-tronics. The threat generation software is built by a team that has a strong legacy of program support and brings many new capabilities in a Commercial Off the Shelf solution that is both ready as a turnkey bench solution or a scalable alternative for larger projects.”
The company’s stock has been on a major bear decline since the 1980s when the stock traded as high as $29 per share, spiking in 2000 to $19 per share, the stock has not risen above $3 per share since July of 2010. Giga-tronics stock was trading below $1 per share as recently as October of this year.
While the financial terms of the agreement with Lockheed Martin were not disclosed in this morning’s press release, Giga-tronics shareholders and the market are showing enthusiasm, taking the stock up more than +120 percent in this morning’s premarket, the best level the stock has seen since May. For its part, Lockheed Martin stock is down a fraction in this morning’s premarket at $219.11 per share after declining -2.99 percent in yesterday’s regular trading session.
Other News About GIGA
Giga-tronics Receives $1.4 Million Order for Advanced Signal Generator Products
Company announced the order from a “major prime contractor” on November 9th.
Giga-tronics Reports Second Quarter FY 2016 Results
Giga-tronics reported a loss of -$1.3 million or $0.20 per share for their fiscal 2016 second quarter.
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