Resdel Industries, a rapidly growing Newport Beach electronics manufacturer, said Thursday it has negotiated an agreement worth up to $60 million to supply advanced radio receivers for P-3 aircraft, which the Navy uses to detect, track and attack submarines.
Resdel's agreement with Boeing Aerospace Co. of Seattle could boost the company's revenues by up to $20 million in each of the next three years. Resdel is expected to report revenues of $17 million for the fiscal year ended June 30.
Charles W. Missler, Resdel's chairman and chief executive officer, said the company's Resdel Engineering Corp. subsidiary in Arcadia has already begun engineering work to develop the receivers. The job represents the largest single contract in the company's history.
"It will obviously have a tremendous effect on our operations," said Missler, who added that Resdel is "hiring and gearing up" for the anticipated production.
Missler said the value of the work could total $60 million if the Navy exercises all of the options contained in its contract with Boeing and if Boeing exercises all of its options with Resdel.
Boeing spokeswoman Sherry Nebel said Resdel is one of seven companies included in a teaming agreement with Boeing to modernize the avionics equipment in the P-3s. The total value of Boeing's contract with the Navy is $1 billion.
Nebel said that Boeing's plans have not yet been announced and that the company has not completed a final contract with Resdel. She characterized the arrangement between Boeing and Resdel as a "memorandum of agreement."
"It's a contract to me," said Bruce Rossiter, Resdel's chief financial officer. Rossiter said specific design and production dates are the only details not yet settled with Boeing.
Missler said Resdel's revenues will also be bolstered by its pending acquisition of San/Bar Corp., an Irvine-based telecommunications company that reported $15 million in sales last year. The proposed transaction is subject to shareholder approval.