Result of AGM

Thursday, 20 December 2012

The Company announces that at the Annual General Meeting held earlier today, all the resolutions were duly passed.

View the complete announcement on London Stock Exchange Website


Strategic European customer awards SimiGon its third contract

Wednesday, 12 December 2012

Key European customer adopted SimiGon's SIMbox development tools for its Academic Training Center

SimiGon Limited (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has further expanded its long-term relationship with a major existing European customer.

The Company has been awarded a contract, a third since the companies began working together in 2009, for licenses of the Company's SIMbox technology at the development labs of this customer's Academic Training Center ('ATC'). This is an expansion upon an original contract announced on 30 September 2009. Separately, the Company announced in July 2012 that SimiGon's training software had been adopted for a second customer by this customer.

Under the contract announced today, valued at US$0.34 million with a further contract for maintenance and support services expected to follow, SimiGon has increased the penetration of its SIMbox technology across the customer's organization. The SBT systems are expected to be installed at the customer's ATC sites during 2013. This contract does not change the Company's expectations for the years ended 31 December 2012 or 2013.

SimiGon President and CEO, Ami Vizer, said: "SimiGon's relationship with this key partner continues to develop and grow stronger. This latest contract is a clear endorsement of both our technology, and our long term strategy to position SimiGon at the heart of major global organizations."

The Simulation Based Training ('SBT') solution, based on SimiGon's SIMbox simulation and training technology platform, will play an integral role in the customer's new training centers. SIMbox, as the baseline training system, will enable flight cadets to successfully surmount the numerous challenges of learning to operate and fly the aircraft. This is in line with the trend for advanced, highly interactive, cost-effective training solutions that reduce the cost of real flights and flight instructor hours.

View the complete announcement on London Stock Exchange Website


Business and Trading Update

Monday, 3 December 2012

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to provide an update on trading for the period since 30 June 2012.

The Company is pleased to report that it has continued to make strong progress in the second half of the year across the business and as a result now expects to report revenues for the year ended 31 December 2012 of at least $6.5 million (FY 2011: $5.48m), significantly ahead of market expectations and demonstrating clear growth on previous years. The Company expects profits for the year to be in line with market expectations reflecting that the Company has become increasingly active as a prime contractor, as stated in the Company's interim financial statement.

In particular, the Company has in the second half announced a second contract with a major European customer and a substantial contract to supply a South American country's entire armed forces with SimiGon's SIMbox training and simulation technology platform. Sales from both these contracts have been better than previously expected, with additional revenues coming through in 2012. In addition, the Company's performance reflects progress with other longer term contracts, particularly those with the US Air Education and Training Command and Check-6, announced during the course of 2011, which started to make significant contributions to revenue in 2012.

SimiGon President & CEO, Ami Vizer, said: "We are pleased to report that our strong performance in the first half has continued into the second half, and that we are continuing to achieve the key milestones of the strategy implemented in 2008. We have strengthened our position with valuable global partners, as well as expanded into new markets outside the aerospace and defence industry, and these foundations give management great confidence for continued growth in 2013 and beyond."

View the complete announcement on London Stock Exchange Website


Notice of AGM

Thursday, 15 November 2012

SimiGon today announces that the Annual General Meeting of the Company is to be held at 9:00 a.m. Eastern Standard Time (2:00 p.m. GMT) on Thursday 20 December 2012 at 7001 University Blvd. Winter Park, FL 32792, USA.

Shareholders are welcome to attend the meeting in person or join via a conference call using the dial-in details below:

International dial-in number: +1 712 432 1620

Access code: 888780#

The Notice of AGM has been posted to shareholders. An electronic copy of the Notice of Annual General Meeting document is available at the Company's website.

View the complete announcement on London Stock Exchange Website


Exercise of Options

Wednesday, 17 October 2012

The Company announces that application has been made for 9,304 new ordinary shares of 0.01 NIS each in the Company ("Ordinary Shares") to be admitted to trading on AIM ("Admission"). The new Ordinary Shares are being issued pursuant to the exercise of options by a former employee. The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares and Admission is expected to become effective on 23 October 2012.

Following this issue of new Ordinary Shares, the Company will have 47,153,179 Ordinary Shares in issue. The Company holds no Ordinary Shares in treasury. Accordingly, the total number of voting rights in the Company is 47,153,179.

View complete announcement on London Stock Exchange Website


Issue of Equity and Options

Thursday, 11 October 2012

Further to the Company's announcement of 12 April 2012, and following the achievement of certain performance targets, the Company announces that a total of 833,541 new ordinary shares of 0.01 NIS each ("Ordinary Shares") have been issued to senior management and employees, including 516,921 Ordinary Shares to Mr. Ami Vizer (a director of the Company).

Pursuant to the issue of the new Ordinary Shares, Mr. Ami Vizer has a beneficial interest in 8,327,782 Ordinary Shares, representing 17.66 per cent. of the total issued share capital of the Company.

Application has been made for the admission to trading on AIM of the new Ordinary Shares ("Admission"). The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares and Admission is expected to become effective on 16 October 2012. Following this issue of new Ordinary Shares, the Company has 47,143,874 Ordinary Shares in issue and holds none in treasury. Accordingly, the total number of voting rights in the Company is 47,143,875.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.

View complete announcement on London Stock Exchange Website


Interim Results for the six months ended 30 June 2012

Revenues increase 43% to $3.47 million; Net Profit increased to $0.18 million

Thursday, 27 September 2012

SimiGon Ltd ("SimiGon" or the "Company"), a global leader in providing simulation solutions, announces its interim results for the six months ended 30 June 2012.

Financial Highlights

Operational Highlights

Post Period-End Events

Ami Vizer, Chief Executive Officer of SimiGon, stated: "SimiGon has continued to show excellent progress in the first half of 2012, continuing the momentum from a transformational year in 2011. This is the result of the long-term strategy implemented by management back in 2008 to closely align itself with the largest simulation training programmes in the world.

"Successfully executing upon this strategy has allowed SimiGon to build a great foundation for growth, not least due to the strong increase in the Company's cash resources during this period. We have now established SimiGon as a market leader and company of choice for the world's largest simulation training programmes in the aerospace and defence industry, and have successfully expanded into other critical, highly skilled training sectors such as the oil and gas industry.

"Looking ahead, SimiGon continues to expand its customer base and our strategic partnerships are increasingly ramping up sales, providing excellent long term revenue visibility. We are increasing revenues and profitability, generating cash and have a strong order book in place. As a result, the Board expects year-on-year sales growth and looks forward to the future with confidence."

Overview

SimiGon is pleased to report strong revenue growth and increased profitability in the first half of 2012, reflecting excellent progress with new contract wins, in particular, contracts such as AETC and Check-6 announced during the course of 2011, which have started to make significant contributions to revenue in 2012. Revenues increased by 43% to $3.47 million (2011: $2.43 million) with a $0.18 million profit, up from $0.01 million in H1 2011.

The positive start to 2012 was a continuation of the transformational year for the Company in 2011, which was based on the long term strategy put into place by the management team in 2008. At that time the management team decided to position SimiGon with valuable partners and also expand into new markets outside the aerospace and defence industry to build a foundation for long term growth. The first half of 2012 saw the Company benefit from new purchase orders from long term partners as well as new revenue filtering through from the new customers secured in 2011.

As well as being the preferred supplier of training and simulation technologies for four of the world's largest military flight training programmes, including the JSF and UKMFTS, SimiGon's software is now being utilised in other sectors such as the oil and gas industry, which is a reflection of SimiGon's leading position in the market of PC-based training and simulation solutions.

Operational Review

In 2012, SimiGon has continued to secure new contracts, expand and diversify its customer base while benefitting from the gradual ramp up in sales from its long term partnerships.

Major contract win in the period

In May 2012, SimiGon signed a long term agreement with TAISR, to deliver advanced critical skills training and simulation solutions to support the JCAS and ISR community. SimiGon's solutions will help TAISR deliver improved mission success rates and the survival potential of those who operate in hostile environments. Revenue contribution from this contract is expected to begin in the second half of 2012.

Update on long term contracts

SimiGon's long term partnerships are all progressing well as sales continue to steadily increase and the new partnerships established in 2011, such as Check-6 and AETC, accelerate delivery of SimiGon licences.

SimiGon's agreement with Check-6, a deal worth $5.6 million over five years, is the Company's first major contract outside the aerospace and defence industry and the first step in the Company's growth strategy to diversify its product offering and increase its addressable market. SimiGon has completed its project milestones ahead of schedule and gained excellent feedback from the client increasing the possibility of expanding the agreement further in the oil and gas industry. SimiGon has added the type of training and skill development required for survival by fighter pilots and astronauts, to oil and gas workers, preserving lives and protecting profits. Check-6 has worldwide operations and its clients include industry leaders such as Chevron, Diamond Offshore, BP, Hess and others.

This agreement has helped diversify SimiGon's customer base and leaves the Company less reliant on the defence sector.

The agreement with AETC for the delivery of SIMbox based T-6A Modular Training Devices (MTD) is progressing well and due to early successes exceeding expectations, AETC accelerated the timetable for implantation of SimiGon licences. The SIMbox MTD simulators are used to train undergraduate, Remotely Piloted Aircraft (RPA) students for Pilot Instrument Qualification training.

With this agreement SimiGon moved up the supply chain to become a direct supplier to AETC which positions the Company for similar opportunities globally as the T-6A is also used as a basic trainer by the Canadian Forces, the Luftwaffe of Germany, the Greek Air Force, the Israeli Air Force, and others.

Now in its fifth year of supporting Lockheed Martin's F-35 Lightning II Joint Strike Fighter training program, SimiGon has seen an increase in demand as the JSF program progresses and enters its regular production and delivery phase. The JSF programme is expected to continue to be a significant contributor to revenue in 2012 and the Company expects sales to steadily grow in 2013 and 2014.

SimiGon continues to successfully meet project milestones for the UK Military Flying Training System. This three year partnership validates SimiGon's product capabilities allowing the company to showcase its product capabilities and increase probability of future sales.

Other projects are progressing smoothly with SimiGon delivering a complete Live, Virtual and Constructive training solution for Unmanned Aerial Vehicle training program for a leading provider in the small tactical unmanned aircraft systems.

Post Period-End Events

In July, SimiGon announced a second agreement with one of its major European customers to provide its Simulation Based Training systems forming the backbone of its new Academic Training Centre. This agreement follows on from an initial contract SimiGon signed with this customer in 2009, whereby SimiGon supplied SBT systems for the client's advanced aircraft pilot training system. This original agreement continues to progress well and it was due to this success that the customer looked to expand the relationship further. The new contract is for the initial phase of pilot training and for a different aircraft, expanding SimiGon's role and cementing the relationship even further.

In August, SimiGon signed a substantial contract to provide a South American country's armed forces with its SIMbox training and simulation technology platform. SIMbox will be the baseline training technology used by its local partner, a newly formed government-owned company dedicated to the development of training and simulation systems. This initial contract marks the first time a country's armed forces has determined that training systems that are to be deployed across the armed services will be based on SIMbox.

Financial Review

Revenues for the six months ended 30 June 2012 were $3.47 million as compared to $2.43 million for the six months ended 30 June 2011, reflecting an increase of 43%. Gross margins were 70% (H1 2010: 83%), reflecting that the Company has become active as a prime contractor (that is, also reselling hardware and programs) on certain contracts. It is expected that the gross margins will increase in H2 2012 compared with the first half.

Gross profit for the six months ended 30 June 2012 was $2.43 million, as compared to $2.02 million for the six months ended 30 June 2011. Net profit for the six months ended 30 June 2012 improved by $0.17 million to $0.18 million (H1 2011: Net profit of $0.01 million).

Total operating expenses for the six months ended 30 June 2012 increased by 13% to $2.27 million (H1 2011: $2.01 million), primarily due to an increase in research and development expenditure, which reflects the investment made in new employees for this area which the Company considers important going forward. Marketing expenses for the six months ended 30 June 2012 increased by 7% to $0.69 million as compared to $0.65 million for the six months ended 30 June 2011 and general and administration expenses the six months ended 30 June 2012 increased by 3% to $0.5 million as compared to $0.48 million the six months ended 30 June.

Operating income for the six months ended 30 June 2012 amounted to $0.17 million, significantly improving upon performance for the six months ended 30 June 2011.

The financial income for the six months ended 30 June 2012 increased to $0.011 million as compared to $0.007 million for the six months ended 30 June 2011 mainly due to the currency exchange rate and decrease in banks loan interest.

The net profit for the six months ended 30 June 2012 amounted to $0.18 million as compared to $0.01 million for the six months ended 30 June 2011. This resulted in net basic and diluted earnings per share for the six months ended 30 June 2012 of $0.004 as compared to $0.0003 basic and diluted earnings per share for the six months ended 30 June 2011.

SimiGon generated positive cash flow from operations of $2.4 million during the six months ended 30 June 2012, leaving the Company with cash, cash equivalent and deposits of $6.98 million at 30 June 2012 (30 June 2011: $4.42 million), with a significant contribution made from the timely collection of outstanding trade debtors. The Company has fully repaid all of its bank debt outstanding as at 31 December 2011.

Outlook

The Company continues to grow and has a solid backlog for the second half, from contract wins last year and earlier in 2012. This, together with excellent revenue visibility from longer-term contracts, gives the Board confidence in the Company's prospects for the remainder of the year to 31 December 2012.

View complete announcement on London Stock Exchange Website


Notice of Results

Tuesday, 04 September 2012

SimiGon, a global leader in providing simulation solutions, will announce its interim results for the six months ended 30 June 2012 on Thursday, 27 September 2012.

View complete announcement on London Stock Exchange Website


SimiGon’s Simulation Platform Selected to Train South American Country’s Entire Armed Forces

Wednesday, 22 August 2012

First time SIMbox technology selected as the simulation training solutions platform of an entire country’s armed forces

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has signed a substantial contract to provide a South American country’s armed forces with its SIMbox training and simulation technology platform. SIMbox will be the baseline training technology used by its local partner, a newly formed government-owned company dedicated to the development of training and simulation systems.

This initial contract marks the first time a country’s armed forces has chosen SIMbox as the training system to be deployed across its entire armed services. The contract is expected to commence immediately, with delivery of hardware and training on the SIMbox system in the coming months and completion in early 2013. Revenue will be apportioned in line with delivery milestones. The revenue contribution from the initial contract will contribute to improved revenue visibility for the year ended 31 December 2012 and extending into the next year.

Under the terms of the contract, SimiGon will initially deliver SIMbox development systems, a wide range of training courses and on-the-job training to local partners’ software developers and support their simulation development activities. Based on this, local partners’ developers will build their own SIMbox-based training and simulation content to support training of its armed forces, including the Cessna Caravan, Super Tucano, M1117 Armoured Security Vehicles and many others. SIMbox-based training solutions will be deployed by the armed forces in training centres as well as for operational training and distributed joint forces training exercises.

Furthermore, and additional to the above initial contract, SimiGon’s local partner will be required to purchase SIMbox Runtime licenses for the delivery of content to trainees. Revenue from the sale of such Runtime licenses is not included in this initial contract and is expected to generate significant levels of additional recurring revenues going forward.

SimiGon President & CEO, Ami Vizer, said: "This is a major win and a significant achievement for SimiGon as it is the first time that a nation has decided to base its entire armed forces simulation training infrastructure on SimiGon's SIMbox. For us to be appointed at the end of an extensive selection process is further proof that we have the most advanced and robust solution available today.

“We look forward to working closely with our latest strategic partner to support their efforts to develop advanced training solutions. We expect our cooperation with this partner will lead to many additional opportunities within this country and throughout Latin America."

View complete announcement on London Stock Exchange Website


SimiGon wins a second contract from strategic European customer

Tuesday, 17 July 2012

Company to support new Academic Training Center ('ATC')

SimiGon Limited (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has entered into a new contract with one of its major European customers for the development of an initial aircraft training program within its SIMbox simulation environment. The Simulation Based Training ('SBT') systems will be installed at the end user site and will be the backbone of its new Academic Training Centre ('ATC'). The value of the contract is US$0.43 million and does not change the Company's expectations for the year ended 31 December 2012.

This agreement follows on from an initial contract SimiGon signed with this customer in 2009, which was worth over US$2.0 million. Under that program, SimiGon supplied SBT systems for the client's advanced aircraft pilot training system. The contract announced today is for the initial phase of pilot training and for a different aircraft.

The SBT solution, based on SimiGon's SIMbox simulation and training technology platform, will play

an integral role in the customer's new training center. SIMbox, as the baseline training system, will enable flight cadets to successfully surmount the numerous challenges of learning to operate and fly the aircraft. This is in line with the trend for advanced, highly interactive, cost-effective training solutions that reduce the cost of real flights and flight instructor hours.

SimiGon President and CEO, Ami Vizer, said: "We are excited to have been chosen once again by this key strategic partner. Over the past three years we have successfully demonstrated that our cost effective simulation based training has reduced the need for real flights and flight instructor hours in the air. The selection of SIMbox shows the confidence our partner has in our solutions to replicate this success in its new academy training center. We are fully committed to ensure this happens and grow this important strategic partnership."

View complete announcement on London Stock Exchange Website


TAISR Group awards significant contract to SimiGon

Tuesday, 01 May 2012

SimiGon to support the Joint Close Air Support (JCAS) and manned/unmanned Intelligence, Surveillance and Reconnaissance (ISR) community

SimiGon (LSE: SIM), a global leader in modeling, simulation & training solutions, is pleased to announce that it has signed an agreement with TAISR Group LLC (TAISR), a US-based organization that provides critical skills training, to deliver advanced training and simulation solutions to support the Joint Close Air Support (JCAS) and manned/unmanned Intelligence, Surveillance and Reconnaissance (ISR) community. JCAS and ISR technology seeks to improve mission success rates and the survival potential of those who operate in hostile environments.

This agreement demonstrates that SimiGon is the partner of choice for simulated training in the defence sector as it expands the Company's reach into the ISR market, a new, fast growing and substantial market for the Company, valued at US$17.3bn in 2011 by Visiongain, a UK-based independent business information provider. The value of the agreement to SimiGon is US$430,000, expected to be recognized entirely in the course of 2012, under which SimiGon will provide SIMbox-based advanced training and simulation solutions to support the JCAS and ISR community. The revenue contribution from this contract is already factored into management's expectations for the year ended 31 December 2012.

William Burgum, TAISR CEO, said: "With our vast combat experience as JCAS Controllers and ISR sensor operators, we understand the shortcomings of current training practices. When we met SimiGon last year, we immediately realized how this technology can help us close the training gap. This alliance will result in a paradigm shift in how training is perceived and performed in the JCAS & ISR world."

SimiGon President & CEO, Ami Vizer, said: "We are excited to work with a market leader such as TAISR. The JCAS and ISR market segment is growing rapidly in size and importance and will lead to numerous growth opportunities. The partnership with TAISR further validates the value our technology brings to our partners. We see this contract as a first step in a long term, mutually beneficial relationship for both parties."

View complete announcement on London Stock Exchange Website


Posting Annual Report and Accounts

Wednesday, 25 April 2012

SimiGon announces that its Annual Report and Accounts for the year ended 31 December 2011 was posted to shareholders yesterday.

A copy of the Annual Report and Accounts is also available on the Company's website: www.simigon.com.

View complete announcement on London Stock Exchange Website


Issue of Equity and Options

Wednesday, 12 April 2012

SimiGon announces that, as part of ongoing initiatives to decrease cash expenses whilst continuing to incentivise and reward certain senior management and employees for meeting performance targets, the Board has approved the issue of a total 2,055,837 ordinary shares of 0.01 NIS each in the Company ("Ordinary Shares") and the granting of a total 2,964,115 options over ordinary shares of 0.01 NIS each ("Options") to Mr. Ami Vizer and Mr. Efraim Manea (both being directors of the Company).

Furthermore, pursuant to resolutions passed at the AGM held on Monday 28 November 2011, a further 119,727 Ordinary Shares have been issued to the Company's Non-Executive Directors in return for a one year salary reduction.

Following the issue and grants as described above, the interests of directors in Ordinary Shares and Options will be as follows:

Director

Issue of Ordinary Shares

Consequent interest in Ordinary Shares

Grant of Options

Consequent interest in Options


(# of Ordinary Shares)

% of Enlarged Share Capital

 

 

 

 

 

 

Ami Vizer

1,972,233

7,810,861

16.87%

2,926,533

3,336,533

Efraim Manea

22,109

189,264

0.41%

37,582

170,082

Alistair Rae

47,727

118,181

0.26%

-

-

Nevat Simon

24,000

48,000

0.1%

-

-

Vered Shany

24,000

48,000

0.1%

-

-

Eitan Cohen

24,000

48,000

0.1%

-

-

 






Total

2,114,069

8,262,306

17.84%

2,964,115

3,506,615

In addition, the Board has also approved the issue in the near future of a further 316,620 Ordinary Shares to senior management and employees and 516,921 Ordinary Shares to Ami Vizer, subject to the final achievement of certain performance targets.

The grant of Options to Mr. Manea is subject to shareholder approval at the next Annual General Meeting of the Company. The Options are exercisable at a price of 0.01 NIS (being the nominal value of the Ordinary Shares).

Accordingly, application has been made for a total of 2,175,564 Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange ("Admission"). The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares and Admission is expected to become effective on 17 April 2012. The Company will have 46,310,333 Ordinary Shares in issue following Admission ("Enlarged Share Capital").

View complete announcement on London Stock Exchange Website


Annual Report and Accounts

Wednesday, 11 April 2012

SimiGon today announces that the Annual Report & Accounts for the year ended 31 December 2011 has been posted to shareholders. An electronic copy is available here:
SimiGon 2011 Annual Report

View complete announcement on London Stock Exchange Website


Preliminary Results for the year ended 31 December 2011

Wednesday, 04 April 2012

SimiGon Ltd (the Company, together with its subsidiaries, "SimiGon" or "the Company"), a global leader in providing simulation solutions, announces its preliminary results for the year ended 31 December 2011.

Financial Highlights

Operational Highlights

Ami Vizer, Chief Executive Officer of SimiGon, stated: "We are pleased to announce a return to revenue growth and profit in a year of significant progress as we successfully implemented our strategic growth plan. We were able to foresee the potential market challenges, plan for it and improve our positioning and market reach.

"As a result, SimiGon has cemented its market leading position in the aerospace and defence industry while also achieving its growth plans to expand into lucrative new markets and move up the supply chain to become a prime contractor for training programmes.

"With a larger and more diverse customer base, major new contracts secured and the expected ramp up in sales of our long term defence training programmes, the Board looks forward to 2012 and beyond with confidence."

Enquiries:

SimiGon Ltd
Ami Vizer, Chief Executive Officer
Efi Manea, Chief Financial Officer
www.simigon.com


finnCap (NOMAD & Broker)
Stuart Andrews / Henrik Persson

Luther Pendragon (Public Relations)
Harry Chathli/Alexis Gore


Tel: +1 (407) 737 7722
 



 Tel: +44 (0) 20 7220 0500


Tel: + 44 (0) 207 618 9100

Overview

SimiGon is pleased to report a return to revenue growth and profit in 2011. Revenues increased 5% to $5.48 million (2010: $5.21 million) with a $0.35 million profit from a loss of $0.68 million in 2010.

The positive results in 2011 are the result of a patient strategy implemented by management to position SimiGon with strategically valuable partners and build a foundation for long term growth. SimiGon's software is now the preferred supplier of training and simulation technologies for four of the world's largest military flight training programmes including the JSF and UKMFTS, which is a reflection of SimiGon's leading position in the market of PC-based training and simulation solutions.

Operational Review

SimiGon entered 2011 with a set of strategic goals to build a foundation for long term growth. These were: to expand into new markets outside the aerospace and defence industry; to increase the number of strategic partners; and to move up the supply chain and be a direct supplier of training programmes. It is pleasing to report that all of the above targets were achieved.

Major contract wins

In October 2011, SimiGon was awarded a $5.6 million contract from Check-6 in a five-year agreement, the Company's first major contract outside the aerospace and defence industry and the first step in the Company's growth strategy to diversify its product offering and increase its addressable market. SimiGon will bring the type of training and skill development required for survival by fighter pilots and astronauts, to oil and gas workers, preserving lives and protecting profits. Check-6 has worldwide operations and its clients include industry leaders such as Chevron, Diamond Offshore, BP, Hess and others.

This development diversifies SimiGon's customer base and leaves the Company less reliant on the defence sector. Non military sales accounted for 23% of revenues in 2011 as opposed to 16% in 2010.

SimiGon achieved a further significant milestone when selected as prime contractor for AETC for the delivery of SIMbox based T-6A Modular Training Devices (MTD). The SIMbox MTD simulators will be used to train undergraduate, Remotely Piloted Aircraft (RPA) students for Pilot Instrument Qualification training. With this agreement SimiGon moved up the supply chain and to become a direct supplier to AETC. This agreement positions SimiGon for similar opportunities globally as the T-6A is also used as a basic trainer by the Canadian Forces, the Luftwaffe of Germany, the Greek Air Force, the Israeli Air Force, and others.

In addition, the Company's training and simulation platform, SIMbox, was selected for its in-base driving training system by the U.S Air Force. This agreement opens another door for SimiGon and could lead to further new business opportunities in the future.

Increased partnerships

As part of the Company's long term strategy, SimiGon constantly surveys the potential to increase its number of strategic partners and penetrate additional commercial markets, offering other industries learning and training simulations using its advanced technological infrastructure.

In 2011 the number of strategic partners tripled from the number in 2010. New partners secured in 2011 include Check-6, AETC and TAISR Group to add to SimiGon's established, long term partnerships with the likes of Lockheed Martin, BAE and Boeing. As a result, SimiGon is not as dependent on a single client or country for its sales and now has a more diverse and global presence.

Update on long-term contracts

The Company entered the third year of supporting Lockheed Martin's F-35 Lightning II Joint Strike Fighter ("JSF") training program. The company expects increased license delivery as the JSF program enters its regular production and delivery phase.

SimiGon has been successfully meeting project milestones over the past three years for the UK Military Flying Training System ("UKMFTS"). This substantiates SimiGon's product capabilities allowing the company to showcase its product capabilities and increase probability of future sales.

SimiGon is in the third year of a long-term contract to provide training simulations for a strategic European aircraft manufacturer. This partnership was further strengthened in 2011 as agreement was reached for additional licenses as part of future projects expected to be delivered in 2012 and 2013. The Company continued to deliver a complete Live, Virtual and Constructive training solution for Unmanned Aerial Vehicle training program for a leading provider in the small tactical unmanned aircraft systems. The first training center was launched in 2011 with additional systems expected to be delivered to US and international clients in 2012.

Financial Performance

Revenue for the year ended 31 December 2011 was $5.48 million, compared to $5.21 million in 2010, reflecting increase of 5%. In terms of regional breakdown, 71% of SimiGon's revenues came from North America (2010: 67%), 27% from Europe and the Middle East (2010: 27%) and 2% from the Far East (2010: 6%).

Net profit for the fiscal year improved by $1.03 million to $0.35 million (2010: loss of $0.68 million).

Total operating expenses for the year decreased by 12% to $4.35 million (2010: $4.95 million), the research and development expenses decreased to $1.68 million (2010: $1.76 million) mainly due to salary expenses and cost management. Sales and marketing expenses were $1.70 million (2010: $1.71 million). General and administration expenses decreased to $0.98 million (2010: $1.48 million) mainly due to doubtful debt provision recorded in year 2010, share-based compensation and reduced professional fees.

The operating profit therefore is $0.31 million (2010: operating loss $0.55 million) and the net profit is $0.35 million in 2011 compared to net loss of $0.68 million in 2010. This resulted in a net basic and diluted earnings per share of $0.01 (2010: Basic and diluted loss per share of $0.02).

SimiGon generated positive cash flow from operations of $2.3 million in 2011. As at 31 December 2011, SimiGon had cash, cash equivalent and deposits in the amount of $4.74 million (31 December 2010: $2.62 million).

Outlook

SimiGon has made a solid start to 2012 with revenue visibility improving as sales to the Company's long-term partners and recent contract wins continue to ramp up.

With a strong order book in place and new markets now opening up alongside the Company's established leading position in the aerospace and defence industry, the Board expects year-on-year sales growth and looks forward to the future with confidence.

View the complete announcement on London Stock Exchange Website

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