29th Jan 2009 07:00
SimiGon Ltd ("SimiGon" or the "Company")
$3.1 million Contract Win and Trading Update
SimiGon (LSE: SIM) is pleased to announce it has received an important contract with Lockheed Martin (NYSE: LMT). This initial contract is for the Advanced Jet Training phase of the UK Military Flying Training System ("UKMFTS"). The program includes 25 years support with additional phases and could provide other growth opportunities for SimiGon.
Ascent, a joint venture of Lockheed Martin and VT Group, will provide military flight training to the UK Armed Forces for the next 25 years for the Royal Navy, Royal Air Force and Army Air Corps.
SimiGon will provide Lockheed Martin with software licenses, training, support and other services for the UKMFTS program. Lockheed Martin utilizes SimiGon's SIMbox training and simulation technology platform within its NxTrain™ personal training systems product.
For SimiGon, this contract represents a success of its strategic business model as it transitions from primarily six figure contracts to a long term multimillion dollar contract.
The SIMbox technology platform includes 3D simulation within a SCORM certified Learning Management System, After Action Review, Virtual Instructor and Live Instructor operating stations and easy-to-use content development tools. SIMbox-based training systems are used worldwide including the US, Canada, Australia, Holland, Belgium, Portugal, Singapore, Turkey and Israel.
SimiGon also provides an update on trading in the financial year ended 31 December 2008. The Company expects revenues for the year to be similar to 2007. There were continued delays in the delivery of systems in the initial stages of programmes and the Company has been affected by the weakness of the commercial aviation market. However, SimiGon's core defence market remains robust and the Company ended the financial year strongly, signing a number of new contracts with a broad range of customers around the world. This momentum is continuing into 2009 and the positive UKMFTS development announced today, together with these further contract wins, give the Company confidence about its potential in 2009 and in particular the second half of the financial year. SimiGon's financial position remains sound; at the year end, the Company had cash and cash equivalents of $3.6 million and a bank loan liability of approximately $1 million. The Company has also taken the opportunity to decrease its expenses where possible.
SimiGon President & CEO, Ami Vizer, said, "SimiGon is extremely pleased to have been chosen as a partner in the UKMFTS program; this is a significant milestone for the company. We are very excited to be part of the team for this program as this further extends the mutually beneficial relationship with Lockheed. The UKMFTS will be using our technology the way it was designed to be - network centric, personal and dynamic hi-fidelity training systems for each trainee. We are confident this program will demonstrate the viability of the SIMbox technology platform and our business model. This and other recent contract wins give us confidence in the growth prospects of SimiGon".
Enquiries:
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SimiGon Ltd |
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Ami Vizer, Chief Executive Officer Haim Yatim, Chief Financial Officer |
+972 9 956 1777 |
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Evolution Securities Ltd |
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Jeremy Ellis Chris Clarke |
+44 (0)20 7071 4300 |
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