SimiGon Limited Trading Update (9466B)
16 January 2018 - 6:00PM
UK Regulatory
TIDMSIM
RNS Number : 9466B
SimiGon Limited
16 January 2018
SimiGon Ltd
("SimiGon" or "the Company")
Pre-close trading update
SimiGon Limited ("SimiGon" or "the Company"), a global leader in
providing simulation training solutions, announces an update on
trading for the year ended 31 December 2017 (the "Period") ahead of
announcing its final results for the Period in April 2018.
The Company expects, subject to customary year end and audit
adjustments, to report revenue of approximately $4.3 million and an
adjusted net loss of approximately $1.1 million for the Period. As
set out in the Company's interim results, procedural delays in
concluding the signatory processes over the significant contract
with the Israeli Air Force were resolved later in the Period than
expected, whilst the Company continued to invest in research and
development making major advances in simulation streaming, graphic
engine capabilities, and Training Management System infrastructure
to further improve SIMbox technology and increase market
penetration across military and civilian training markets. The
Board consider that the Company is now well placed for the coming
financial year and beyond.
The Company is in discussions with a particular customer in the
civilian training market and its auditors to resolve an uncertainty
regarding the level of revenue to be recognized arising from one
significant contract which was delivered in full during the course
of the Period and for which only partial payment has yet been
received. The Board are taking a prudent approach at this stage by
only recognizing approximately half of the revenue (and all costs)
attributable to this contract and note that full recognition would
increase the revenue and reduce the loss set out above by
approximately $0.7 million.
The Company's balance sheet remains strong with more than $7.6
million of liquid cash as at 31 December 2017.
SimiGon President & CEO, Ami Vizer, commented: "While we are
disappointed with the expected revenue for this Period, we are
encouraged by the significant upside potential from a number of the
contracts and business opportunities we are currently working on.
We continued to execute our strategy for the underlying business,
deliver project milestones for long term contracts and build our
strategic position as a technology partner to our customers."
"With a $20 million backlog over the next ten years,
approximately $5 million is expected to be delivered and recognized
in 2018. Together with a healthy pipeline of opportunities, SimiGon
has a strong foundation. This allows the Board to have an
optimistic outlook and have confidence in the Company's ability to
deliver growth over the long term."
Enquiries:
SimiGon Ltd
Ami Vizer, Chief Executive Officer Tel: +1 (407) 951
Efi Manea, Chief Financial Officer 5548
www.simigon.com
finnCap (NOMAD & Broker)
Henrik Persson / Scott Mathieson Tel: +44 (0) 20
(corporate finance) 7220 0500
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEAAFSFFSPEAF
(END) Dow Jones Newswires
January 16, 2018 02:00 ET (07:00 GMT)
Simigon (LSE:SIM)
Historical Stock Chart
From Apr 2024 to May 2024
Simigon (LSE:SIM)
Historical Stock Chart
From May 2023 to May 2024