SIM.L Regulatory News (SIM)

8 Jun 2007 07:30

SimiGon Limited08 June 2007 8 June 2007 SimiGon Limited Trading Statement SimiGon Limited ("SimiGon" or "the Company"), a developer and global supplier ofe-learning simulation software to the defence, aviation and industrial sectors,provides an update on trading since the announcement of its full year results on20 February 2007 In its planned expansion into new territories with non-military use of its coreproduct the Company has had to delay a programme with a customer in the Far Eastto ensure compliance with applicable regulations. In Europe, two customers have delayed their purchase of the Company's D-Briefsystems until next year. In addition the Company is seeing slower sales in itsAirTrack products to the commercial airlines who are taking longer to upgradetheir in-flight entertainment system. As a result of these issues, the Company will see slower growth than expectedfor 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%, whichis significantly below market expectations, while pre-tax profits are unlikelyto reach the level of 2006. Since the beginning of the year the Company has continued to leverage its coreproduct SIMbox to increase market share in its existing markets and laid solidfoundations in newer markets. The Company is now confirmed as the partner ofchoice to provide simulation training within Lockheed Martin's winning bids forthe UK's Military Flying Training System and Singapore's Basic Wings Course. TheCompany hopes to announce another such success with the Joint Strike Fighterprogramme in the near future. Ami Vizer, Chief Executive Officer of SimiGon stated: "It is undoubtedlydisappointing that much of the growth we had expected to see in 2007 has beenpushed back. We are bidding, and bidding successfully, for contracts that are insome instances much larger than in previous years but the length of time forthese contracts to be awarded is longer. "However, SimiGon has made significant progress in its core business as it hasestablished itself as the main supplier of simulation training in the world'stop three training programmes which could deliver stable long-term revenuestreams. "Although the growth in new territories is taking longer than anticipated, theCompany has many opportunities in its core areas which gives us confidence inthe long term growth prospects of the Company and our ability to delivershareholder value." Enquiries: SimiGon Limited Ami Vizer, CEO +1(407)3340402 Haim Yatim, CFO +972(52) 8391580 Corfin Communications Harry Chathli +44 (0) 20 7929 8980 Ben Hunt This information is provided by RNS The company news service from the London Stock Exchange