Giga-tronics Incorporated (the Company) announced that it has received a $4 million order from the Naval Air Warfare Center based upon its Real-Time Threat Emulation System (Real-Time TEmS) which is a combination of its new Advanced Signal Generator Hardware Platform, along with software developed and licensed to the Company from a major aerospace and defense company. The order is comprised of two TEmS units of equal value along with approximately $671,000 of engineering services to support and upgrade currently installed systems. The Company expects to fulfill the first TEmS unit order in the March 2019 quarter, the Company's fourth quarter of the current fiscal year. The second TEmS unit order is expected to be fulfilled during the June 2019 quarter, the Company's first quarter of next fiscal year. The engineering services are expected to occur during the next twelve months.

The company provided earnings guidance for the third quarter ended December 29, 2018. For the quarter, the company net sales are expected to be approximately $1.9 million. The net loss for the third quarter is expected to be approximately $500,000.