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So many bargains to be had at the moment....
GSK near a 2 year low. Lots of other blue chips where an easy 10%-20% could be had....
Why on earth would you buy here?
For those worrying that the MOU might not result in a license deal, read this post from Pat Nolan on linkedin and see what you think?
"This is a significant step forward for Seeing Machines, and it is great to continue to grow our partnership with L3 Harris Commercial Aviation....we have positioned this tech and the related signals to many major carriers, operators and air forces around the world, gaining strong belief and support in the value of eye tracking in better understanding 'monitoring', to support the instructors with new, relevant and timely data, and to optimise pilot / crew training.... A big thankyou to the respective teams and to L3 Harris Commercial Aviation for taking a position....it is just compelling data! "
PM44
I just found this, so it makes me think $125k is as a proportion a reasonable amount to keep either ahead of, or just keep up with the opposition.
Simulators cost between $6 million and $8 million each, and then another $400 to $500 an hour to operate because of labor and maintenance costs.9 Jan 2020
PM44: aviation pricing is eye watering so I could fully believe those numbers. FAA certification (as well as for the other authorities around the world) is lengthy and expensive and a huge barrier to entry for competitors. To give it some reference, a basic economy class chair for an aircraft costs $3,000, and even more for the ones with added functionality (chargers etc). A business class chair costs around $60,000. So something high tech like SEE with complex software and algorithms could easily cost the sort of numbers being quoted.
Buff only understands gum chewing! New line tech is not up his street - watch previous movies!!
Question. How does SEE make money on this? Via a chip similar to dms, by selling a kit similar to Guardian or by licensing? Or a combination?
Also, if I understand the figures, does SEE get paid $125K per installation? Not complaining but It seems a very high figure to me.
MRBB - Hopefully, if revenue generation has already started then it reduces the chances of us needing to do another fundraise to support the R&D going forward.
I am hoping that revenue generation may have already started based on agreed prices for work to be done , ahead of the signing of the long awaited contract.
I too remember reading that although the flight simulator business was low in volume, each individual simulator was worth $250k per sim installation for SEE. If L3 are working with these big companies, even if they have "only" 20% of the market, it could be worth millions in revenue before we account for each individual unit thereafter.
It's also worth highlighting that L3H are wanting to install units into BOTH existing simulators at L3H training centres, as well as future simulators, meaning that revenue generation from this potentially *really*exciting arm of the business is actually much closer than we might imagine.
Numpyti, I also remember the A$125k per unit for our tech in sims, I looked at the Dec 18 RNS and no value mentioned so it was probably an interview around that time.
The license deal would cover,
- new ffs
- retrofit to existing
A$125k discounted for volume, x% upfront and a royalty per unit of maybe 10-15% (CAT deal), I get to a big number for upfront.
Lets keep things really simple, we have 2 announced MOU on license deals, I will assume both are closed this financial year and the combined upfront just from these 2 MOU will take us to profit and funded forever.
The only number I have for FY21 is Cenkos which shows a loss of A$22m, so I think better cost management, improved fleet terms, and these license deals will get us to profit in FY21.
I vaguely remember a figure of $125k per sim was discussed on this board, ( but happy to be corrected) but the value per aircraft once certified to do so, would be far in excess of simulator valuation. With Lewbos estimated 4000 simulators and a current fleet of 43,110 commercial aircraft the figures start to become very interesting. Once you include the likes of military and
air traffic control the future looks even more interesting.
Having met Pat Nolan at CMD, and had a very interesting and informative chat, I have absolutely no doubt that he is one postman that will deliver.
Seeing 2020 , you hath a good way of leading the masses through a warren of possibilities without buffeting off the sides or making anyone in the shires feel a berk.
Numpty pi
Answer = Warren Buffet
L3 Harris is a great start, note the addition of Harris since we first started dealing with L3, they had a merger and now are truly a global giant.
CAE supply the ffs to many of the worlds top airlines including Emirates
Flight safety International, the smaller of the 3 but something really excites me about them, could our company have a license deal with FSI, so then you look at FSI ownership, and its actually a license deal with ??
This will push CAE and FSI to want to offer to their clients. Alaska are a mix of CAE and L3 sims, Emirates are CAE, Fedex are all CAE bar one, Airbus are a mix.
Puts pressure on as its the oems want it.
And as has been said Military market is much bigger....
Esc, I think you have hit the nail on the head
Could you imagine the L3harris board when told that the AIM minnow based in Canberra is playing hardball and its non exclusive or no deal.
Amazing really, now who supplies the ffs for Emirates? , it ain't L3harris
We needed this news. I rarely post but am an avid reader of all you guys that conduct relentless research (thank you). I have certainly picked a recent low vibe in the group mainly down to lack of news and also comments (dreams) from the other side. Feeling confident again!!
Klick, I confess my first thought was 'only a MOU after all this time'? However I think we can attribute a minimum of 6 months delay for covid and the non-exclusive clause will have been a 'hill to die on' for the L3 negotiators, I am certain. The fact that we have this 2 years on from Collaboration is pretty good going under current circs. IMO.
Klick the reality is their are 2 or 3 big players, in military L3harris and CAE dominate with around 20% share each.
We also now know what defines 'imminent' :)
"global non-exclusive license agreement", they've learnt their lesson with Takata, apparently there are around 78 companies offering FFS.
Some here....
Alsim Flight Training Solutions (France)
Bluedrop Performance Learning Inc. (Canada)
CAE, Inc. (Canada)
Cubic Corporation (USA)
Elbit Systems Ltd. (Israel)
ELITE Simulation Solutions (USA)
FlightSafety International, Inc. (USA)
FRASCA International, Inc. (USA)
HAVELSAN A.S. (Turkey)
Lockheed Martin Corporation (USA)
L3 Technologies, Inc. (USA)
L3 Link Simulation & Training (USA)
Rockwell Collins, Inc. (USA)
Thales Group (France)
The Boeing Company (USA)
TRU Simulation + Training Inc. (USA)
Well I think it's fantastic validation of what the company is doing , well done to pat Nolan and his very small team.
Well mr l3 harris you listened to our request for eye tracking in the simulators(said in an oem type voice) we shall require some more please.
OK, I'm getting excited now this includes retrofit to existing ffs, this is huge. Someone cleverer than me would know the numbers. Lewbo is our Aviation expert?
"L3Harris and Seeing Machines will work together to implement this technology into simulators at L3Harris' training centers, and offer the integrated solution to L3Harris' customers into existing and future simulators."
Well said Seeing-2020, what an incredible achievement for SEE.
L3 is only the start. I expect this tech to spread far and wide into the aviation industry over the next few years.
Enjoy the ride all!
Sometimes in life the nice guys win, today is one of those days. Well done Pat Nolan.
How he is managed to sign an MOU with global gaint L3 Harris with all thats going on in aviation astounds me.
The Postman delivers, and as my mother would say "f*ck the begrudgers"