Employees
To the best of its knowledge, the Company is compliant with local prevailing wage, contractor licensing and insurance regulations, and has good relations with its employees.
Market Opportunity – U.S. Military
Optex products are currently marketed in the military and related government markets. Since 1998, American military spending has increased over 225% on an annual basis to over $600 billion per year. As the American presence overseas continues, this level of spending should continue to exist. Also, the market for replacement parts for existing military equipment is significant.
Optex meets the U.S. military requirements in its product lines:
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Reliability – failure can cost lives |
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Cost effectiveness |
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Ability to deliver on schedule |
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Armed forces need to be able to see to perform |
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Mission critical products. |
Therefore, Optex is well positioned to continue to service U.S. military needs.
Market Opportunity – Commercial/Retail
Optex products are currently sold exclusively to military and related government markets. We believe we have significant potential retail opportunities to commercialize various products we presently manufacture. Our initial focus will be directed in three product areas.
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Big Eye Binoculars – While the military application we produce is based on mature military designs, Optex owns all castings, tooling and glass technology. These large fixed mount binoculars could be sold to Cruise Ships, Personal Yachts and Cities/Municipalities. |
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Night Vision Goggles - Optex presently manufactures the Optical System for the NL-61 Night Vision Sights for the Ministry of Defense of Israel. This technology is based on the IR Squared design and could be implemented for retail commercial applications.
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Infrared Imaging Equipment – Optex manufactures and assembles Infrared Imaging Equipment for Textron and components for Raytheon’s Thermal Imaging M36 Mount product. This equipment and technology has potential to be assembled for border patrol, police and security agencies. |
Customer Base
Optex serves customers in three primary categories: as prime contractor (TACOM, U.S. Army, Navy and Marine Corps), as subcontractor (General Dynamics, BAE, Raytheon and Northrop) and also as a supplier to foreign governments (Israel, Australia and NAMSA). Although we do serve all three of these categories, at present, approximately 90% of the gross revenue from our business is derived from two customers, General Dynamics Land Systems (“GDLS”) and U.S. Army TACOM, with which we have approximately 50 discrete contracts which covers a supply of all of the vehicles, product lines and spare parts. Given the size of GDLS and TACOM as well as the fact that the contracts are not interdependent, we are of the opinion that this provides us with a well diversified customer pool. This broad base enables Optex to mitigate its risk in this economic environment by not relying on a sole or few sources of revenue as well as providing a broad base from which to build its future business.
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Corporate Headquarters
1420 Presidential Drive
Richardson, TX 75081
Investor Relations
Phone Number: 1 972 644 0722
Email: Please use our Contact form
