HAUPPAUGE, NY -- Orbit International will consolidate the operations of its Quakertown, PA-based subsidiary into its Hauppauge, NY, plant. The Quakertown facility manufactures a displays and hand-held devices for military, industrial and commercial applications.

Beginning next quarter, all production, engineering and administrative functions currently performed at the Tulip Development Laboratory facility in Quakertown will be transitioned into Orbit's 60,000 sq. ft. facility in Hauppauge. Consolidation should be completed before June 30, the firm said.

The company expects to take approximately $400,000 in expenses and charges, inclusive of approximately $300,000 of accelerated non-cash amortization expense on its leasehold improvements, in connection with the consolidation. Following the transition, the electronics manufacturer expects to realize annualized savings of approximately $2 million.

Mitchell Binder, president and CEO of Orbit, said, "We were driven to this decision by a number of factors, among them, a difficult business environment due to budgeting concerns in Washington, our broader focus on promoting operating efficiencies, and TDL's expiring lease. After consolidation of these two facilities, our Hauppauge facility will have sufficient capacity to support future growth without any significant facility investment."

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