SimiGon Limited Trading Update (9466B)

TIDMSIM

RNS Number : 9466B

SimiGon Limited

16 January 2018

SimiGon Ltd

("SimiGon" or "the Company")

Pre-close trading update

SimiGon Limited ("SimiGon" or "the Company"), a global leader in providing simulation training solutions, announces an update on trading for the year ended 31 December 2017 (the "Period") ahead of announcing its final results for the Period in April 2018.

The Company expects, subject to customary year end and audit adjustments, to report revenue of approximately $4.3 million and an adjusted net loss of approximately $1.1 million for the Period. As set out in the Company's interim results, procedural delays in concluding the signatory processes over the significant contract with the Israeli Air Force were resolved later in the Period than expected, whilst the Company continued to invest in research and development making major advances in simulation streaming, graphic engine capabilities, and Training Management System infrastructure to further improve SIMbox technology and increase market penetration across military and civilian training markets. The Board consider that the Company is now well placed for the coming financial year and beyond.

The Company is in discussions with a particular customer in the civilian training market and its auditors to resolve an uncertainty regarding the level of revenue to be recognized arising from one significant contract which was delivered in full during the course of the Period and for which only partial payment has yet been received. The Board are taking a prudent approach at this stage by only recognizing approximately half of the revenue (and all costs) attributable to this contract and note that full recognition would increase the revenue and reduce the loss set out above by approximately $0.7 million.

The Company's balance sheet remains strong with more than $7.6 million of liquid cash as at 31 December 2017.

SimiGon President & CEO, Ami Vizer, commented: "While we are disappointed with the expected revenue for this Period, we are encouraged by the significant upside potential from a number of the contracts and business opportunities we are currently working on. We continued to execute our strategy for the underlying business, deliver project milestones for long term contracts and build our strategic position as a technology partner to our customers."

"With a $20 million backlog over the next ten years, approximately $5 million is expected to be delivered and recognized in 2018. Together with a healthy pipeline of opportunities, SimiGon has a strong foundation. This allows the Board to have an optimistic outlook and have confidence in the Company's ability to deliver growth over the long term."

Enquiries:

 
 SimiGon Ltd 
  Ami Vizer, Chief Executive Officer     Tel: [phone] 
  Efi Manea, Chief Financial Officer     5548 
  www.simigon.com 
 finnCap (NOMAD & Broker) 
  Henrik Persson / Scott Mathieson       Tel: +44 (0) 20 
  (corporate finance)                    7220 0500 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 16, 2018 02:00 ET (07:00 GMT)