HAUPPAUGE, NY – Orbit International has purchased the assets of Q-Vio, developer of LCD display modules.

Through a newly formed subsidiary, Orbit will operate under the name Q-Vio Corp. Q-Vio will become part of the Orbit Electronics Group. The purchase price will consist almost entirely of an earn-out to Q-Vio based on the attainment of certain revenue and gross profit benchmarks through Dec. 31, 2022.

Q-Vio’s annual sales have been approximately $2 million to $2.5 million since 2016. The firm’s current backlog is in excess of $900,000. The company sells products to the military, industrial, marine and broadcast marketplaces.

In addition, Q-Vio has an expiring lease in San Diego as of Aug. 31.  Consequently, its operations in San Diego will be closed, and all manufacturing and administrative functions will be moved to Orbit’s facility in Hauppauge, NY.

Ray Pronko, Q-Vio’s president, will become vice president of marketing and sales of Q-Vio Corp. and will operate out of Orbit’s sales office in Bradenton, FL. In addition, two Q-Vio employees in mechanical engineering and sales application engineering will be retained by Orbit. Additionally, Q-Vio Corp. will continue Q-Vio’s practice of utilizing several manufacturing contractors in China for certain high-volume sales opportunities to preserve its 40% gross margin objectives.

“We welcome the addition of Q-Vio and incorporating its operation into our Hauppauge facility, which will enable us to take advantage of our excellent operating leverage,” said Mitchell Binder, president and CEO of Orbit. “Consequently, this acquisition should be accretive to our company’s earnings.  In addition, we are confident Ray Pronko will be a great addition to our sales organization and provide new sales opportunities for our OEG, as well as our OEG sales team, adding new opportunities for Q-Vio, particularly for military applications.

“Orbit has recently utilized Q-Vio’s technology to develop next-generation prototypes for certain of its military programs, which are being evaluated by our customers. Furthermore, both Pronko and our sales team have identified certain business opportunities in the military marketplace where they believe Orbit and Q-Vio can team to provide solutions to Orbit’s customers, thereby improving the overall sales of our OEG.”

“We are excited to become part of the Orbit organization and look forward to contributing to its future growth,” said Ray Pronko, president of Q-Vio. “Our display technology can stand up to the brightest sunlight conditions and provide our customers with superior performance. In addition to the many follow-on opportunities we are expecting, we believe Orbit’s financial strength and its sales organization will enable Q-Vio to extend our reach for many new business opportunities. We believe the demand for our sunlight readable technology will also provide Orbit the ability to increase its revenues beyond the military marketplace.

“Our profitability over the past several years has generated favorable operating cash flow and positioned us with a strong balance sheet. We have utilized our cash to repurchase 619,475 shares (14.8%) since Jan. 1, 2017, instituted a quarterly cash dividend beginning in the third quarter of 2018 and will continue to seek out strategic accretive acquisitions, all to enhance shareholder value.”

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