West Melbourne-based Relm Wireless Corp. is branching out, with a new digital radio targeted primarily for what it sees as a growing market among government agencies seeking better two-way radios for disaster response, homeland security and other public-safety work.
The company this month also announced deals with the Department of Homeland Security and the U.S. Postal Service.
In announcing Monday the introduction of the BK Radio DPH-CMD, Relm officials said the new product should allow the company to continue to grow its business. The company has received some orders for the new radios, and expects to start shipping them next month.
Gary Kessler, the company's marketing manager, said some government agencies are under mandates to switch from using analog radios to digital radios, and Relm plans to take advantage of that. The company makes analog and digital two-way radios.
"It's been a hot topic since the Oklahoma City bombing, 9/11 and Katrina," Kessler said.
More agencies are using portable digital radios to improve communications.
This latest addition in Relm's product line "expands and strengthens our digital radio product line," Relm President and Chief Executive Officer David Storey said. The new "digital portable radio offers distinct advantages, including superior audio clarity, ease of use and programming, longer battery life, and lower cost than comparable competitive products."
Willim Kelly, Relm's chief financial officer, said the company likely will increase its current staff of 91 workers, if sales of the new radio take off as planned.
"Ultimately, we hope we'll close more sales and increase payroll," Kelly said.
Monday's announcement follows Relm's announcement last week that it has been named as the exclusive subcontractor in a Department of Homeland Security contract worth up to $3 million to provide radio equipment for locations nationwide.
Also this month, Relm
announced its agreement with the U.S. Postal Service to provide two-way portable radios has been extended by one year to July 2007. The original contract, executed in July 2005, was for one year and included four one-year renewals.
Under the terms of the Postal Service agreement, Relm Wireless became the exclusive provider of two-way portable radios and accessories to Postal Service installations throughout the United States and its territories and possessions, including main and associate post offices, administrative offices, training and technical centers, and headquarters.
Relm's stock price closed Monday at $6.93 a share, down 16 cents from Friday's close, in trading on the American Stock Exchange.
In the first quarter ended March 31, Relm reported revenues of $7.18 million, with a profit of $865,000. That was up from sales of $5.54 million and a profit of $332,000 in the first quarter of 2005.
The company, which is coming off a record year for sales and profits in 2005, is scheduled to report its second-quarter financial results July 31.
