29th Apr 2019 12:45
LONDON (Alliance News) - SimiGon Ltd on Monday said it expects to deliver an improved financial performance in 2019 following double-digit revenue growth in 2018.
In addition, the simulation training solutions provider said it has commenced an augmented reality research programme with the Israel Air Force.
The programme will utilise SimiGon's research & development investments in the virtual reality and augmented reality domains, with respect to aircraft maintenance training, by providing the ability to test and refine technologies.
The company said it expects this programme to have positive impact on its business opportunities.
"It is expected that this programme will allow us to better understand how our augmented reality and virtual reality applications are used and applied for training in operational environments and eventually to improve our capabilities to bring a considerably more advanced, robust, proven capability to the wider market than our competitors," explained Chief Executive & President Ami Vizer.
Turning to annual results, SimiGon reported a narrowed loss in 2018 of USD783,000 compared to USD957,000 a year earlier, as revenue rose 16% to USD5.0 million from USD4.3 million.
The company explained that the "key" contributor to the reported loss is the recording of a doubtful debt provision of USD450,000 related to a delay in payment from an undisclosed customer in the civilian training market.
Due to the removal of expected future revenue from this customer, SimiGon said its forward backlog order book has been revised to USD14 million from the previously announced USD20 million, which it expect to recognize over the next ten years.
Research & development expenses for 2018 increased by 12% to USD2.3 million as compared to USD2.1 million the year before. Marketing expenses, meanwhile, decreased by 13% to USD1.0 million from USD1.2 million in 2017.
"Our growing footprint in the training and simulation industry is propelled by leading, game-changing technologies, diverse global partners, and the need for advanced training systems and positions the company well to deliver improved financial performance in 2019 and beyond," said Vizer.
SimiGon shares were trading 3.0% higher on Monday at 11.32 pence each.
Related Shares:
SIM.L