3 May 2016 07:00
Tuesday May 3, 2016
SimiGon Ltd
("SimiGon" or "the Company")
SimiGon awarded 5.5 year contract worth $7.9 million for civilian aviation training solutions in the Far East
SimiGon continues to expend into the civilian market
SimiGon (LSE: SIM), a global leader in providing simulation solutions, is pleased to announce that it has signed an exclusive five-and-a-half-year contract (the "Contract Period") to deliver SIMbox based training solutions to a leading provider of training solutions for the civilian aviation industries in the Far East (the "Contract").
Under the terms of the Contract, SimiGon will be paid $7.9 million to license its SIMbox software over the Contract Period, with a minimum of $1.4 million per year starting this year. The revenue contribution from this contract was already factored into management's expectations for the year ended 31 December 2016. It also will contribute to improved revenue visibility for FY 2017 and beyond.
This is another major contract outside of the defense industry and it will further expand the Company's growth strategy to diversify its product offering and increase its addressable market. The Contract underlines SimiGon's potential to access a much larger addressable market and has the potential to enable SimiGon to expand further into other civilian aviation industries with similar opportunities.
SimiGon President & CEO, Ami Vizer, said: "This Contract is part of SimiGon's strategy to focus on long-term, high value, stable license contracts which provide better revenue and profit visibility rather than on single lump sum license sales. We are excited to be awarded this Contract which strengthens our position in the civilian aviation sector; a sector which we strongly believe has significant growth potential. We are delighted to be working alongside a leading regional provider of training solutions to the civilian aviation industries and who have a clear vision of how our technology can leverage their current and future businesses".
Enquiries:
SimiGon Ltd Ami Vizer, Chief Executive Officer Efi Manea, Chief Financial Officer www.simigon.com
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