TEL INSTRUMENT ELECTRONICS CORP

Tel-Instrument Electronics Corp.

Overview

• Long-time designer and manufacturer of avionics test and measurement equipment.
• Founded in 1947; based in East Rutherford, New Jersey.
• Serves global commercial air transport, general aviation, and government/military defense markets.
• Products test, measure, calibrate, and repair airborne navigation and communications equipment.
• Publicly traded on the OTCQB under the symbol TIKK.

Key products and programs

CRAFT — Communications and Navigation Flight-Line Test Sets

• AN/USM-708 and AN/USM-719 illustrate the CRAFT family.
• Recent development and production activity under Navy Engineering Change Proposals (ECPs).
• 708A/719A upgrades: production resumed; ECP-related backlog and orders reported.
• 2025–2026 contract activity:
  • Full-rate production contract awarded August 2025 to upgrade 682 test sets.
  • Follow-on production contract awarded October 2025 for additional 708A and 719A upgrades and repairs.
  • Contract maximum value: $37 million.
  • Delivery orders for 708A upgrades: $3.7 million; additional orders expected.
  • 708A backlogged sales of approximately $1.5 million.
  • First-year IDIQ potential with the F-35 program; initial 708A orders expected to exceed $3 million.
• Market: Joint Strike Fighter program orders and other government/military customers.

SDR-OMNI / SDR-OMNI/MIL (software-defined radio multi-function test sets)

• SDR-based avionics test set with wide frequency coverage (1 MHz to 2.2 GHz), weight up to 4.5 pounds.
• Handheld, touch-screen form factor; MIL-PRF-28800 Class 1 environmental compliance (-40°C to +55°C).
• SDR-OMNI selected by Airbus to replace obsolescent test sets; Airbus and American Airlines are customers.
• SDR-OMNI/MIL adds SIF and TACAN capabilities for military/secure communications markets.
• DoD interest and alignment with ongoing military solicitations.
• Volume opportunities include Tinker AFB orders to replace IFR 4000/6000 units and orders from Korea.

High-frequency development

• MADL test set in development; pursuing a five-year IDIQ for additional units.
• Exploring high-frequency test sets for Lockheed Martin F-35 program.

Mode 5 IFF products

• T-47/M5 Dual Crypto Test Set — Mode 5 upgrade path for approximately 2,000 AN/APM-480A/T-47 Mode 4 sets.
  • Supports Modes 1, 2, 3A, C, S, EHS, Mode 4, and Mode 5.
  • Built-in USB for remote diagnostics.
  • TIC has delivered approximately $15 million of T-47/M5 test sets to domestic and international customers.
  • U.S. DoD AIMS certification for T-47/M5.
• TS-4530A IFF test set (Mode 5, ADS-B, EHS, TCAS)
  • Delivered over 4,100 kits/test sets.
  • Army upgrading software for Mode 5 Level 2B functionality; potential Air Force software updates.
• T-4530i IFF test set (software/hardware upgrade of TS-4530A)
  • Lead customer: German military; Ni-MH batteries; expanded Mode 5 capability.
  • European distributor Muirhead delivered approximately $3.9 million to Germany.

Other IFF and related solutions

• TS-4530A and TS-4530i lines targeted at Mode 5, ADS-B, EHS, TCAS and related subsystems.
• Additional IFF toolsets and modules introduced to address evolving IFF standards and platforms.

Commercial/NAV RF flight-line tester market

• Core legacy line includes AN/USM-708/719 with IFF, navigation and communication test capabilities, including sonobuoy testing capability within the CRAFT family.
• Major customers include U.S. military and NATO partners.
• Certifications: AIMS program approval for core CRAFT units.

Market positioning and competition

• Commercial/general aviation market: competition historically included Viavi IFR 4000/6000 lines; SDR-OMNI positioned as smaller, lighter, more rugged, and easier to use as obsolescent equipment is replaced.
• Military/defense market: larger competitors dominate; company emphasizes compact form factor, MIL-PRF-28800 Class 1 compliance, and niche capabilities such as Mode 5, TACAN, SIF, and MADL potential.
• Competitive approach: engineering quality, product innovation, pricing, and pursuit of small business set-aside contract opportunities.

Sales, customers, and distribution

• Domestic commercial sales: FY2025 $1,774,042; FY2024 $2,113,567.
• Government sales: FY2025 $6,062,763 (65% of total sales); FY2024 $5,565,433 (63% of total sales).
• International sales: FY2025 16% of total sales; FY2024 13% of total sales.
• Customer concentration:
  • Direct domestic commercial customers: 2025 had one customer representing 21% of domestic commercial sales; 2024 had two customers representing 24% and 19%.
  • Domestic distributor represented ~14% of domestic commercial sales in 2025 and ~24% in 2024.
  • Direct government customers: 2025 had two direct customers representing 31% and 11% of total sales.
  • Government customer concentration by share is reported for 2024–2025 periods.
• Distribution network:
  • Exclusive distributors include Muirhead Avionics Ltd (UK), Milspec Services (Australia/NZ), plus distributors in Spain, Portugal, and East Asia.
  • Other distributors: MPG Instruments s.r.l. (Italy) for DME/P ramp and bench test units.
  • No single international distributor represented more than 10% of total sales or government sales in 2024 or 2025.
• Services: calibration and repair services comprised 11% of sales in 2025 and 14% in 2024.

Backlog and delivery

• Backlog as of March 31, 2025:
  • Commercial: $2,444,231
  • Government: $5,827,726
  • Total: $8,271,957
• Backlog as of March 31, 2024:
  • Commercial: $478,730
  • Government: $6,709,133
  • Total: $7,187,863
• Approximately 65% of the March 31, 2025 backlog is expected to be delivered within the following 12 months.
• Historically, orders are expected to be filled in less than 12 months.

Operations, facilities, and employees

• Facility: East Rutherford, NJ — approximately 27,000 sq ft for manufacturing, office, and testing.
  • Office lease extended April 2021 for eight years through August 31, 2029; lease includes pro rata real estate taxes, insurance, and utilities.
• Kansas office: small office leased and terminated October 2025.
• Executive housing: company lease for an apartment near the NJ plant for the CEO extended through April 2027.
• Employees:
  • March 31, 2025: 45 total employees
    • Manufacturing, supply chain, QA: 18 full-time, 2 part-time
    • Administration and sales: 8 full-time, 1 part-time
    • Engineering/R&D: 13 full-time, 3 part-time
    • Independent contractors: 1 in sales management
    • No employees belong to a union
  • June 29, 2026: 38 total employees
    • Manufacturing, supply chain, QA: 17 full-time, 1 part-time
    • Administration and sales: 7 full-time, 1 part-time
    • Engineering/R&D: 10 full-time, 2 part-time
    • Independent contractors: 1 in sales management
    • No employees belong to a union
• Staffing reflects ongoing product development and demand, with competition for senior engineering talent.

Regulatory, legal, and risk

• Patents: the company reports no patents or licenses material to the business.
• Environmental: no material environmental problems reported.
• Cybersecurity: processes exist to assess and manage cybersecurity risks and external IT support is engaged.

Financial highlights

• 2025 total sales: approximately $9.34 million (government sales $6,062,763 = 65% of total).
• 2024 total sales: approximately $8.84 million (government sales $5,565,433 = 63% of total).
• Repair and calibration services: 11% of sales in 2025; 14% in 2024.

Summary

Tel-Instrument Electronics Corp. supplies avionics test and measurement equipment for commercial and military customers, with established product lines across CRAFT flight-line test sets, SDR-OMNI handheld test sets, Mode 5 IFF products, and other IFF toolsets. Recent contract awards and backlog, Airbus selection of SDR-OMNI, deliveries of Mode 5 equipment, and active development for high-frequency and MADL test sets reflect ongoing product and market activity through the reported fiscal periods.