SimiGon continues SIMbox success with $2.4m contract

Tuesday, 20 November 2007

SimiGon Limited (LSE: SIM), a global leader in the provision of simulation solutions, announces that it has signed a $2.4m contract with an international customer.

The customer has bought licences for the provision of software and services based on SIMbox architecture, which enables users to develop flexible, PC-based training solutions. It is expected that SimiGon will deliver the software to the customer and will recognize revenues from the sale in the current financial year. The Company believes that this can be the first step of several with this customer.

The revenues to be recognized in this contract are already factored into market expectations for the Company’s performance in 2007 and the deal itself illustrates the changing nature of SimiGon’s business, from short-term programs with short sales cycles into multi-million dollar programs with major customers. While this shift places SimiGon in a much stronger position to achieve long-term growth, in the short-term in such deals there remains a potential timing lag between the Company being selected as the preferred supplier of simulation training technology and commencement of the delivery of the systems. The Company expects that, as revenues grow, the potential overall impact of such timing lags will reduce.

SimiGon President and CEO, Ami Vizer said: "SimiGon has made significant progress in expanding the market and customer base for SIMbox throughout 2007 and is delighted to have signed a substantial deal with another international customer. This deal provides another strong endorsement both of the strength of the SIMbox product, as well as our business model."

SimiGon successfully deploys first Air Traffic Controller Trainer with Israeli Air Force

Wednesday, 31 October 2007

SimiGon Limited (LSE: SIM) announces that it has successfully delivered its Air Traffic Controller Trainer to the Israeli Air Force (IAF), representing the first deployment of the PC-based training system, incorporating flight programme content and ATC training functionality. The ATC trainer is going to be used in all parts of Air Traffic Controller training, including new cadets and experienced officers.

The successful delivery of this initial contract, which is worth $200,000 to SimiGon, increases the likelihood that the IAF will decide to exercise its option for additional systems.

SimiGon's Air Traffic Controller Trainer is based on the Company's SIMbox and AirBook technology. Under the terms of the contract, more then 100 air traffic controllers will be trained per year. It is expected that the combination of voice recognition integrated with SimiGon's technology will significantly reduce the time spent by the trainees reaching their qualifications.

AirBook is SimiGon's aviation training software product based on the Company's core product, SIMbox, a highly flexible, PC-based consumer off-the-shelf product providing government and industry partners with enabling technologies for developing flexible training solutions.

SimiGon President and CEO, Ami Vizer said, "We are pleased to be working with the IAF in providing PC based real-life simulation and training to their air traffic controllers and enabling them to complete their training faster.

"This also demonstrates how SIMbox can be adapted to provide companies and agencies with the ability to build simulation based training in most fields. We look forward to developing a long term relationship with the IAF."

Transfer of shares held in trust by a director

Thursday, 18 October 2007

The Company announces that A. Vizer Holdings Ltd. (the "Trustee"), an associate of Amos Vizer, a director and the chief executive officer of the Company, has today transferred for nil consideration the legal title to 937,500 ordinary shares in the Company (the "Transfer Shares") which it held as nominee (as described in the admission document of the Company dated 27 October 2006 (the "Admission Document")) to the beneficial owners of those shares. The Transfer Shares represent approximately 2.5 per cent. of the entire issued share capital of the Company and did not represent any part of Amos Vizer's beneficial interests in the share capital of the Company.

The Transfer Shares will be subject to the same lock-in arrangements which applied to the Trustee ("Lock-in"), as described in the Admission Document. The Lock-in period is for the twelve months following 2 November 2006, being the date of admission of the Company's entire issued share capital to the AIM market.

Change of Advisor

Wednesday, 10 October 2007

SimiGon Limited (LSE: SIM) announces the appointment, with immediate effect, of Evolution Securities Limited as NOMAD and corporate broker to the Company.

Enquiries:

SimiGon Limited
Corfin Communications
Evolution Securities Limited

Ami Vizer, CEO
Harry Chathli/Ben Hunt
Tom Price/Jeremy Ellis

+44 (0)20 7977 0020
+44 (0)20 7977 0020
+44 (0)20 7071 4300

SimiGon wins Contract from Portuguese Air Force for F16 Air Combat Training

Wednesday, 05 September 2007

SimiGon Limited (LSE: SIM) announces that the Portuguese Air Force has selected the Company's AirBook software for its desktop training programme.

The Portuguese Air Force (PoAF) has awarded a contract to EMPORDEF Technologies de Informação SA - the leading domestic Military Training and Simulation company and the PoAF’s largest major simulation services provider by far for the delivery of PC-based training systems, incorporating advanced F-16 content and targeting pod training functionality.

Recognising the potential of AirBook, EMPORDEF chosen SimiGon and its US partner VTSG, to be partners in the programme.

The contract will initially generate approximately $350,000 of revenue in 2007 with expected follow-on orders from (European Participating Air Forces) EPAF worth more than $800,000 by the end of 2008. The order further enhances visibility of SimiGon's total order backlog for 2007 and 2008 and it increases the probability that the other European Air Forces will follow the Portuguese, Belgium and the Dutch air forces and adopt the Company’s platform.

With the Air Forces of the US, Israel, Singapore, Belgium, Netherlands, Thailand already signed up to use SimiGon’s products, the Company is now the training partner of choice for the overwhelming majority of the world’s F16 programmes and the Air Forces that fly F16s.

AirBook is SimiGon's aviation training software product based on the Company's core product, SIMbox, a highly flexible, PC-based commercial off-the-shelf product. POAF aircrew will benefit from a multitude of AirBook features while training with the most up-to-date weapons and sensor software simulation. AirBook training benefits include hi-fidelity, 3D simulation; personalized training on demand; After Action Review ("AAR"); and interactive computer-based training courseware. Furthermore, air force instructors and commanders will utilise an advanced Learning Management System ("LMS") to monitor and track individual and group progress, enabling them to provide better training content.

SimiGon President and CEO, Ami Vizer said, "We are excited to work with EMPORDEF Tecnologias de Informação and the Portuguese Air Force and building a long term relationship with them. This win comes soon after our win with the Belgium Air Force and demonstrates the growing realisation within professional communities of the increased training effectiveness and efficiency that SimiGon's software provides."

Empordef SA Executive Director Carlos Felix said, “We are looking forward to working with the AirBook application to solve both short and long term training issues that will keep the Portuguese Air Force aircrew current in the next generation of F16 weapons and sensors.”

AIM Rule 26 Announcement

Thursday, 16 August 2007

The Company announces that the information required by AIM Rule 26 (company information disclosure) is available at the SimiGon website at www.simigon.com/aimrule26.html.

Canadian Air Force extends SimiGon contract for Winged Warriors exercise

Monday, 23 July 2007

SimiGon Limited has been selected to provide the technological infrastructure for the Tactical Aviation Training course of Canada’s Air Force, extending a successful relationship between the two parties.

SimiGon’s AirBook technology is planned to be at the heart of Winged Warrior 2007, the Canadian Air Force’s next major virtual training exercise, which will take place in October, although deployment of the systems is expected to take place in August.

The specifications for Winged Warrior demonstrates the sophistication and flexibility of SimiGon’s AirBook, an aviation training software product based on the Company’s core product, SIMbox, a highly flexible, PC-based commercial off-the-shelf product providing government and industry partners with enabling technologies for developing flexible training solutions.

The Winged Warrior exercise will involve 30 pilots employing 24 linked AirBook systems, two of which will be used for exercise management. The rest can be configured in a wide variety of ways, including the use of several different aircraft, or many trainees operating different stations in one vehicle. Following the exercise the systems will be deployed back to squadrons for individual and tactical training.

This is part SimiGon’s contract with the Canadian Air Force, which involved limited deployments, aimed at individual familiarization with aircraft and personal training, followed by exercise support.

SimiGon President and CEO, Ami Vizer said: "We are delighted that the Canadian Air Force has extended its relationship with SimiGon and that its previous experience of our technology has given it the confidence to engage in a much more sophisticated deployment of AirBook."

Major Jean-Francois Martel, in charge of training for 1 Wing in the Canadian Forces, said: “Two years ago we identified SimiGon’s AirBook as the only solution on the market that fully aligned with our training vision. AirBook’s modularity and SimiGon’s past performance made them the obvious choice for Winged Warrior 2007, which is our largest and most important virtual exercise this year.”

SimiGon is a fast-growing company with vast experience in providing Modelling, Simulation & Training solutions to customers worldwide. The Company’s partners include government and industry leading training and simulation organisations as well as small businesses providing end users with added value content packages based on SIMbox technologies.

Holdings in Company

Monday, 16 July 2007

SimiGon Limited (“the Company”) announces that as part of its continuous monitoring of its shareholder list, it has become aware that RHI Holdings, Inc (“RHI”) has reduced its shareholding in the Company by up to 742,500 ordinary shares in the capital of the Company (the “Sale Shares”) over a period of time from 28 February 2007 to 19th June 2007. These shares were sold by RHI whilst subject to a lock-in agreement entered into on 27 October 2006 between certain of the Company’s shareholders, including RHI, the Company and the Company’s Broker and nominated adviser, Panmure Gordon (Broking) Limited (“Panmure Gordon”), (the “Lock-In Agreement”), as described in the admission document of the Company dated 27 October 2006.

Having identified this breach of the Lock-In Agreement by RHI, the Company, Panmure Gordon and RHI have worked together to come to an arrangement to remedy that breach. As a result of these discussions RHI agreed to reinvest in the Company all of the profits which it realised by the sale of the Sale Shares by purchasing ordinary shares in capital of the Company (“Ordinary Shares”) in the market. To this end, RHI acquired 178,000 Ordinary Shares at a price of 80 pence per share on the 12th July (the “Purchased Shares”). RHI has also agreed in principle to sign a new lock-in agreement in relation to the Purchased Shares which expires three months later than the original Lock-In Agreement. The Ordinary Shares which RHI held at the date of admission of the Company’s entire issued share capital to trading on the AIM market (other than the Sale Shares) remain subject to the original Lock-In Agreement.

Following these trades RHI continues to hold an interest in 1,411,195 Ordinary Shares representing 3.8% of the voting rights attributable to the Ordinary Shares in issue. Of these 1,411,195 Ordinary Shares, 1,233,195 are subject to the original Lock-In Agreement with the remaining 178,000 to be subject to the new lock-in agreement.

Additional measures have been put in place to prevent any other locked-in shareholders selling any further shares until the original Lock-In Agreement has expired.

“NxLearn” Learning Management System Selected by F-35 Lightning II Joint Strike Fighter Training System

Orlando, FL. July 09, 2007

SimiGon (LSE: SIM) is delighted to announce that the NxLearn Learning Management System, built around the Company’s unique learning framework, SIMbox, has been selected for the F-35 Lightning II Joint Strike Fighter (JSF) training program.

NxLearn will be an integral part of the JSF training system and is one element of NxSys, a Lockheed Martin (NYSE: LMT) integrated training system infrastructure.

The SIMbox technology in NxLearn provides a variety of training benefits, allowing easy creation and distribution of advanced SCORM 2004 content. By providing solutions for multiple requirements, NxLearn will enable the JSF program to meet critical support lifecycle costs.

SimiGon President and CEO, Ami Vizer said, “Lockheed Martin's use of our SIMbox technology for its NxLearn program is a significant milestone in SimiGon’s development and provides yet another affirmation of the viability of our training solutions. Using SIMbox’s extends the long-term productive relationship enjoyed between Lockheed Martin and SimiGon. We are proud and excited to be a part of the JSF team, and we look forward to being part of a successful training program.”

Lockheed Martin anticipates that F-35 training systems will be delivered over the lifespan of the JSF program.

The F-35 is a supersonic, multi-role, 5th generation stealth fighter designed to replace a wide range of existing aircraft, including AV-8B Harriers, A-10s, F-16s, F/A-18 Hornets and United Kingdom Harrier GR.7s and Sea Harriers.

Result of AGM

Monday, 09 July 2007

The Company announces that at the Annual General Meeting on Monday 9 July 2007, all the resolutions were duly passed.

AGM Conference Call

Tuesday, 05 July 2007

Further to the announcement of 31 May 2007, SimiGon Ltd, a global leader in providing simulation solutions, announces that the annual general meeting will be held at Group’s offices 1 Sapir Street, Herzliya, 46733, Israel, at 4pm local Israeli time (2pm London time) on Monday, July 9, 2007.

Shareholders are welcome to attend directly at the offices or join via a conference call at 4pm Israel time (2pm London time). Please find the dial-in details below:

UK dial-in: 020 3003 2666
International dial-in: +44 20 3003 2666

Enquiries:
Corfin Communications
Harry Chathli, Ben Hunt
+44 (0) 20 7929 8989

SimiGon Limited Trading statement

Friday, 08 June 2007

SimiGon Limited (“SimiGon” or “the Company”), a developer and global supplier of e-learning simulation software to the defence, aviation and industrial sectors, provides an update on trading since the announcement of its full year results on 20 February 2007.

In its planned expansion into new territories with non-military use of its core product the Company has had to delay a programme with a customer in the Far East to ensure compliance with applicable regulations.

In Europe, two customers have delayed their purchase of the Company’s D-Brief systems until next year. In addition the Company is seeing slower sales in its AirTrack products to the commercial airlines who are taking longer to upgrade their in-flight entertainment system.

As a result of these issues, the Company will see slower growth than expected for 2007. Although revenue for H1 2007 will be approximately 1.5M (2006 – 3.7M), revenue growth for the whole of 2007 is likely to be in the order of 15%, which is significantly below market expectations, while pre-tax profits are unlikely to reach the level of 2006.

Since the beginning of the year the Company has continued to leverage its core product SIMbox to increase market share in its existing markets and laid solid foundations in newer markets. The Company is now confirmed as the partner of choice to provide simulation training within Lockheed Martin’s winning bids for the UK’s Military Flying Training System and Singapore’s Basic Wings Course. The Company hopes to announce another such success with the Joint Strike Fighter programme in the near future.

Ami Vizer, Chief Executive Officer of SimiGon stated: “It is undoubtedly disappointing that much of the growth we had expected to see in 2007 has been pushed back. We are bidding, and bidding successfully, for contracts that are in some instances much larger than in previous years but the length of time for these contracts to be awarded is longer.

“However, SimiGon has made significant progress in its core business as it has established itself as the main supplier of simulation training in the world’s top three training programmes which could deliver stable long-term revenue streams.

“Although the growth in new territories is taking longer than anticipated, the Company has many opportunities in its core areas which gives us confidence in the long term growth prospects of the Company and our ability to deliver shareholder value.”

SimiGon Limited Notice of AGM

Thursday, 31 May 2007

SimiGon Ltd, a global leader in providing simulation solutions, announces that the annual general meeting of the Group is to be held at 4pm local Israeli time on Monday, July 9, 2007 at 1 Sapir St., Herzlia Pituach, Israel .

The Report & Accounts of the Group for the year ended 31 December 2006 have been posted to shareholders and copies will be made available at the registered office of SimiGon: at 1 Sapir St., Herzlia Pituach, Israel [and the offices of Corfin Communications, 11th Floor, 78 Cannon Street, London EC4N 6HH].

SimiGon: Preliminary Results for the Year Ended 31 December 2006

Tuesday, 20 Feb 2007

View announcement on London Stock Exchange Website

HERZLIA, Israel--SimiGon Ltd (LSE:SIM) (the Company together with its subsidiary “SimiGon” or the "Group"), a global leader in providing simulation solutions, announces its maiden preliminary results for the year ended 31 December 2006.

Financial Highlights

Operational Highlights

Ami Vizer, SimiGon’s President and CEO, said: “We reached several major milestones in 2006 chiefly among them was our successful IPO. We believe that the capital raised will enable the Company to develop sales and marketing capabilities and to expand the Company’s presence in key markets.

Furthermore, we successfully met our 2006 earnings forecast and we are confident we can meet expectations for the year to December 2007. Our plans are to leverage SIMbox to increase market share in our existing and future markets over the coming years.”

SimiGon Ltd

Ami Vizer, Chief Executive Officer
Haim Yatim, Chief Financial Officer
Shiri Darie, Director of Public Relations

+972 9 956 1777 

 

Corfin Communications

Harry Chathli, Ben Hunt

020 7929 8989 

Overview

SimiGon announces its maiden full year results since admission to AIM on 2 November 2006, with a strong operating performance that consolidated its position as one of the world’s leading developers and suppliers of e-learning simulation software.

2006 was an encouraging year, marking the maturity of SimiGon and culminating in our successful IPO and admission to AIM and the launch of SIMbox 5. During the financial year, we made significant progress in consolidating our position as one of the leading simulation technology suppliers to the Defence and Aerospace industry.

SimiGon believes that workers learn better and more quickly by doing rather than being shown or being told what to do. Its high-technology distributed simulation software allows people to learn to use the equipment they operate in a safe and enjoyable environment. This results in a more effective and efficient training programme for organisations that reduces training time and cost while increasing knowledge transfer and trainee success rates.

SimiGon's core simulation product, SIMbox, has been used to develop several Commercial Off-the-Shelf (COTS) products, including aviation training mission rehearsal, In Flight Entertainment Systems and ground debriefing systems. These products have been tested and used in the aerospace and defence environment where they have demonstrated reliability and robustness and the ability to handle complex distributed simulations.

SimiGon derives the majority of its revenues from contracts in the defence sector and has established a blue chip customer base in that industry. However, in 2006 its revenues from AirTrack (non-defence licensing agreements) increased to 19% of the revenues in 2006 from 3% in 2005.

Towards the end of the year, the Group signed a contract with the Belgian Air Force, which signifies increased awareness of our technology solution and encouraged SimiGon to commit additional resources to address the European market. The contract will initially generate approximately $350,000 of revenues in 2007 with expected follow-on orders worth more than $600,000 by the end of 2008. Subsequently, there has been an increased interest for SimiGon’s offering in this region.

After the year end, on January 24, 2007, the Group purchased the assets of Visual Training Solution Group, Inc ("VTSG"). The Group has worked closely with VTSG over the past few years, providing them with software development tools and licenses, while they performed added value content and hardware integration services for end users. The transaction will provide us with a closer relationship with VTSG customers and a better position to leverage SIMbox capabilities.

Financial Performance

Revenue for the year ended 31 December 2006 was $7.52 million, compared to $4.59 million in 2005, an increase of 63.8%. In terms of regional breakdown, 57.3% of our revenues came from North America (2005: 78.6%), 37.8% from Europe and the Middle East (2005: 12.9%) and 4.9% from the Far East (2005: 8.5%). Gross profit for the fiscal year was $6.3million (2005: $3.96 million), an increase of 59%.

Total operating expenses for the year increased by 26.4% to $3.81 million (2005: $3.015 million), mainly due to the increase in research and development expenses to $1.98 million (2005: $1.45 million) and general and administration expenses to $0.887 million (2005: $0.703 million) due to salary increases and the costs related to being a public company.

Operating income therefore increased to $2.51 million (2005: $0.949 million) and our net income increased from $0.89 million in 2005 to $2.52 million in 2006. This resulted in net basic earnings per share of $0.08 (2005: $ 0.03 basic earning per share) and diluted earning per share of $0.07 (2005: $0.03 diluted earning per share). As of 31 December 2006, SimiGon had cash, cash equivalent and deposits in the amount of $8.88 million.

As of 31 December 2006, the Group had 55 employees, compared to 51 employees in 31 December 2005.

Product Development

2006 saw our highest level of expenditure yet on R&D as we sought to further stretch our technology lead over our competitors.

SimiGon understands the need to remain innovative and develop new features and products to maintain market relevance and increase market share. In 2006, SimiGon focused on the following areas to increase its competitiveness:

Outlook

SimiGon is well positioned within strong growth markets and, over the past year, has achieved a significant increase in revenues and net income.

Looking ahead, the Group plans to leverage SIMbox to increase market share in its existing and future markets over the coming years and as a consequence, the Board believes that the Group will continue to grow and is confident that it can meet market expectations for the year to December 2007.

Contacts

SimiGon Limited
Haim Yatim, CFO, +972 9 956 1777
or
Corfin Communications
Harry Chathli or Ben Hunt, +44 (0) 20 7929 8980

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