14th Feb 2019 12:12
LONDON (Alliance News) - SimiGon Ltd said Thursday it expects a rise in revenue in 2018 and announced its has signed multiple new contracts with an existing customer based in Europe.
The simulation training provider said it expects to report revenue of USD5 million 2018 compared to USD4.3 million in 2017, a 16% increase.
SimiGon said its adjusted net loss is expected to narrow to USD740,000 from USD890,000.
"It has been a successful year for the company, underpinned by an expected 15 per cent. growth in revenue compared to last year, with strong system deliveries and contracts in multiple new domains, all while sustaining and growing our existing partner base," said President and Chief Executive Officer Ami Vizer.
Vizer continued: "SimiGon has entered 2019 with more clients, more partners, stronger technology and much broader utilization of our SIMbox technology in multiple domains compared to any other year in our history. All of which serves as a strong baseline for further growth and management expect this to improve revenue and profitability in 2019. While 2018 was one of our strongest product delivery years, the on-going transition to a software as a service model resulted in the expected drag on our financial performance as licence revenue is now spread over 5-12 years."
Separately, SimiGon announced it has signed multiple contracts with an existing customer worth USD850,000. The contracts will see the company provide licences, maintenance and support services for the customer's simulation training centres.
The contracts comprise of three year delivery commitments, starting immediately. The company has factored the expected revenue from the contracts into its expectations for 2019. The contracts are expected to improve the company's revenue in 2020 and 2021.
Vizer added: "These strategic contracts are highly notable. First, it provides a positive start to 2019. Secondly, this further cements our ongoing strong relationship with this strategic European client.
"These three year contracts are a major win, reflecting the customer's belief in SimiGon technology as the training systems infrastructure. This also demonstrates to the industry SimiGon's ability to provide cost effective, advanced training solutions which addresses market need. We look forward to continuing our close business relationship with this customer and building on this positive momentum throughout 2019."
Shares in SimiGon were up 4.2% Thursday at 12.77 pence each.
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