24 Apr 2019 07:00
SimiGon Ltd
("SimiGon" or the "Company")
USAF logistics support contract extension
SimiGon, (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that the United States Air Force ("USAF") has exercised an option to extend the existing Contractor Logistics Support ("CLS") contract for SimiGon's SIMbox-based T-6A Level 5 FAA Compliant Flight Training Device ("FTD") for one year (the "Contract").
Under the Contract's extended twelve month period of performance, SimiGon will provide software and hardware warranties and support services for the sixteen T-6A Level 5 FTDs, including the simulators that have been delivered by SimiGon as part of the 2016 contract with Booz Allen.
The Contract is expected to enable SimiGon to invoice for services totaling up to $1.41 million over the next twelve month period. The expected revenue from this Contract was already factored into management's expectations.
The Contract indicates end user satisfaction with SimiGon's performance as well as the strategic importance of the training devices in meeting USAF's Undergraduate Remotely Piloted Aircraft Training ("URT") program requirements. The devices provide valuable training capabilities whilst also saving the Government considerable training time and costs. The Company has organically increased its CLS capabilities over the lifecycle of this contract.
SimiGon President and CEO, Ami Vizer, said: "We are very excited to receive the CLS option year contract to support the URT training programme and ensure first class training for new operators. This Contract validates SimiGon's capabilities to successfully deliver and maintain long term contracts for strategic clients and further demonstrates the USAF's confidence in our products and support services. Management expects this Contract to generate new business with the USAF and other Government end users."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
SimiGon Ltd | |
Ami Vizer, Chief Executive Officer | +1 (407) 951 5548 |
Efi Manea, Chief Financial Officer | |
finnCap (NOMAD & Broker) | +44 (0) 20 7220 0500 |
Scott Mathieson / Matthew Radley (corporate finance) | |
About SimiGon
SimiGon (AIM: SIM) is a leading developer and supplier of distributed simulation solutions for defence and civilian applications. SimiGon is the creator of SIMbox, a leading PC-based platform for creating, managing and deploying simulation-based content across multiple domains. Through its off the-shelf training solutions for demanding high-skill occupations, SimiGon provides diverse organizations with faster and more cost-effective training. SimiGon's growing client base includes blue-chip training and simulation systems providers as well as air forces and commercial airlines worldwide. Founded in 1998, SimiGon maintains offices in Israel and the United States.