Simigon Share Discussion Threads

[cfro] 29/6/2013 18:06

noli - re post 253. Very interesting thanks. It does appear that SIM are only going for part of the contract. Im only guessing but if that is the case i would think that they would be in better shape of winning the smaller chunk (£30M) than going for the whole cake so to speak.

[noli] 29/6/2013 17:37

Well worth a read regarding the Israeli Defense Industry, Simigon is mentioned further down but to get the review you have to pay big bucks.

March 5, 2013 /PRNewswire

What is the current market landscape and what is changing?

In 2012, the Israeli defense market valued US$13.10 billion, which represented the third largest military expenditure in the Middle East. During the review period, Israeli defense expenditure declined at a CAGR of -0.94% but is expected to record growth at a CAGR of 2.97% during the forecast period. The growth can be partially attributed to the US$15.5 billion of military aid from the US scheduled between 2013 and 2017; moreover, the continued security threats from Iran, Syria, and other neighboring Arab countries is forecast to result in Israel spending US$71.3 billion on defense during the forecast period.

[noli] 29/6/2013 17:00

Got a mention in the times today. Not much: see below.

Flight simulator maker Simigon rose 22.5 per cent after signing a $6.7m deal that was its first major defence-sector contract win as a prime contractor, rather than with a partner.

[noli] 29/6/2013 16:52

This is from Jan 2012, it gives a good overview of what is included in the kit, the quality look great.

Airfield management course gets more realistic simulator

by Susan Griggs
81st Training Wing Public Affairs

1/17/2012 - KEESLER AIR FORCE BASE, Miss. -- Another partnership between the 81st Training Support Squadron and the 334th Training Squadron has come up with a realistic, flexible new simulator for airfield management training.

"What ties the whole system together is the customized lab designed and installed by the 81st TRSS trainer development shop here at Keesler," said Tech. Sgt. Clint Harper, instructor supervisor for 334th TRS airfield management apprentice course. "They came in, surveyed our needs and concerns and came up with an outstanding state-of-the-art design that far exceeded our expectations. The design puts the instructor in the center of everything with a 360-degree view of all students."

The six new simulators and two instructor consoles, purchased from Simigon at a cost of $185,000, consist of a chassis simulating a vehicle, with a seat, steering wheel, pedals and three high resolution LED screens.

The simulators were accepted Dec. 16 and the trainer development team was responsible for installing the cubicles and equipment in time for instructors to begin introducing students to the new technology Jan. 3. Use has been scaled down somewhat as the instructors learn the software.

"As we become more proficient and create more scenarios and simulations, we'll integrate them more heavily, eventually into every block of training," Harper remarked.

"The simulators came equipped with a simulation of Nellis Air Force Base, Nev., which will be our primary training airfield, but Randolph AFB, Texas, and McCarran International Airport in Las Vegas were also included," Harper said.

"Simigon included over 100 'entities,' which are aircraft, vehicles, people, wildlife and other random objects that can be introduced as a planned part of the simulation, or thrown in on the fly to keep students on their toes."

Harper explained that the older simulators were designed to train future airfield drivers, which isn't the focus of the course.

"In our course we take 168 studends a year through the process of airfield planning, design, construction, sustainment and operations management," he remarked.

"These simulators are highly customizable and were designed by trainer development with the intent to meet our needs."

Trainers can now create simulations that compliment all course requirements, from airfield design to day-to-day airfield operations to complex emergency response situations.

"These simulators offer incredible realism," said Dale Riggins, 81st TRSS equipment resources manager.

"When you're behind the wheel, you can even feel the slide of the ice and snow."

"With the ability to deliver on-screen slides, we can add as much detail as needed to enhance our training," Harper pointed out. "We are now able to give students a hands-on application perspective, which wasn't possible before. This will also help reduce the amount of 'braindump' that students experience before reaching their first duty station."

[noli] 29/6/2013 13:43

Amos talking about the results.

[noli] 29/6/2013 12:55

I could be wrong on this but i have been trying to find out who the contract is with for the South American Country's Entire Armed Forces, i think its columbia but i am only going off Cessna Caravan, Super Tucano, M1117 Armoured Security Vehicles, the funding comes from the US i believe.

[noli] 29/6/2013 11:45

Just had a quick look through the rns's and a few numbers on contract worth, it looks as though the monthly gain over 12 months revenue for 3 contracts is 5.85 mill. As i dont know what revenue the South American Country's Entire Armed Forces contract is worth for the SIMbox/baseline training technology, i would suggest SIM are already over the 6.81 million for last year. As the South American contract for the whole Armed forces must be worth over 1 mill for the year.

[noli] 29/6/2013 09:45

Just found more info on the CEVT contract SIM and URS have applied for, it's to long to post but according to the tender its 50 to 80 million. So maybe SIM are only going for part of it. It will be awarded in the last qtr.

The Government Rough Order of Magnitude for this effort ranges from $50M to $80M if all options are exercized.

[noli] 28/6/2013 21:24

I must say i like it when the company employs more staff as shown in the links above. It shows they are expecting more business.

[diggulden] 28/6/2013 20:09

Employee review of what they are like to work for. Pro's and Con's both seem positive to me from an investors viewpoint!



And another job posting:

Instructional System Developer\Courseware Developer

[noli] 28/6/2013 18:24

Director of marketing jobs advertised on the SIM website, they are getting ready for growth by the looks of it.

[noli] 28/6/2013 18:11

SIM will be here, Lockheed Martin are booked on who they have a contract with. Sim are in Booth # 2557, five to the right of Lockheed Martin.

[interceptor2] 28/6/2013 07:27

The market is always a little slow to catch on, which is handy and gives small investors a chance to build a decent holding. This weeks contract was a game changer imv, and has very likely put SIM on the radar of institutional investors, worth keeping an eye on the volume for clues to when they start buying imo.

ic2...

[noli] 28/6/2013 07:21

If you look at the rns's in the list, it's clear to see all the hard work SIM put into place was before August 2011, sim was putting the business plan in place, after August 2011 the contracts have just been rolling in.

The more contracts they win then more will renew or give them even more business, its plain to see if you look at the rns's as that has already happened.

[noli] 28/6/2013 06:50

A link from April Daily Express, however the bottom line says it all really.

It said the firm had long-term contracts in "critical, high profile areas such as drone warfare or front line aircraft control".

[noli] 28/6/2013 06:40

SimiGon's annual revenues rise on new contracts


22 April 2013 08:07

SimiGon posted a 97 per cent rise in annual profit as the company secured new contracts for its simulation training technology to the aerospace and defence sectors.

The developer of SIMbox - a PC-based software platform for simulation training in aircraft, ground vehicles, ships and weapons - reported a net profit of $0.69m for the year ended December 31st 2012, compared to $0.35m the previous year.

Revenue increased by 24% to $6.81m from the prior year's $5.48m.

Chief Executive Officer and President, Ami Vizer, said revenue was boosted by existing agreements, the ramping up of long-term partnerships and new contracts.

The group was awarded two new contracts from an existing European customer worth $2.77m and signed an agreement to provide SIMbox to a South American country's armed forces.

In the US, SimiGon won a contract from TAISR Group to support the joint close air support (JCAS) and manned and unmanned intelligent, surveillance and reconnaissance (ISR) community.

"We have created technology that is truly recognisable in the simulation world," Vizer told Sharecast.

"We are a dominant player in the market."

Vizer, who founded the company in 1998 after retiring from the Israeli airforce, said unlike competitors the group provides a comprehensive solution to customers where trainees learn by doing.

"The best way to learn is by doing, not by user manuals. The brain is not wired by memorisation but rather by recollection," he said.

He said the technology also helps organisations reduce their costs as trainees learn how to use equipment faster than traditional methods.

However, he admits demand for the product was difficult to keep up with last year.

New partnerships tripled the group's expectations of one to two new agreements, Vizer said.

Lori Daniel, analyst at finnCap, said the firm capitalised on the increasing pressure for value in defence spending with cost effective training systems.

"More, and larger, contracts from high profile long-term customers like the United States Air Force and the UK Ministry of Defence have seen full year 2012 revenues grow 24% to $6.8m and reported profit before tax and earnings per share 14% to $0.7m and 1.6p, respectively," Daniel said.

"As with full year 2011, cash conversion has been exceptional, again delivering well over $2.0m cash from EBITDA [earnings before interest, tax, depreciation and amortisation] of under $1.0m."

In an effort to keep up with demand and to upgrade technology every two years, the group had to spend more than expected on salaries.

Nevertheless, the company ended the year with cash of $7.0m up from $4.6m the previous year.

Looking ahead, the company forecasts further revenue growth from a backlog of orders.

Shares rose 16.44% to 21.25p at 12:58 Monday.

[noli] 28/6/2013 06:16

With the current broker target at 40p any further contracts will put it up quite easily. If they are awarded the CEVT contract then that could be a massive re rating as that's up to 30 mill contract award. However quite a number are trying to win it.

[interceptor2] 27/6/2013 22:03

Having brought in here yesterday, I have since made two additional purchases. The more I research SIM the more I like them. I feel other contracts will be announced soon, in which case brokers should increase estimates and we will start to come onto the radar. Also reasurring to have such a strong balance sheet.

ic2...

[noli] 27/6/2013 21:19

The GSA Schedule, hence winvale selling simogon's products, it cuts through red tape if they have it. Sim have been awarded this which also means their products are fairly priced.

[noli] 27/6/2013 20:55

It does look like it is nailed on dig, i would imagine they have a number of new contracts to come. They could get a lot of interest from C6. If they start showing good revenue then i would imagine they would get taken out, their growth looks very good with plenty of revenue kicking in this year onwards as most contracts seem to be lenghty, i.e 5 years.

It looks as though these guys sell for Sim, but i havn't dug enough just yet to get a clear picture.

Winvale Price list, its in pdf but i can only get the link in cached:http:

//webcache.googleusercontent.com/search?q=cache:Ds-Moruyr2kJ:www.winvale.com/pdfs/reseller_partners/SimiGon_Price_List.pdf+&cd=39&hl=en&ct=clnk&gl=uk

[diggulden] 27/6/2013 20:39

Yes cheers Noli, it looks as though they are nailed on to blow 2012's figures out of the park, especially with the recent large contract win being over 18 months duration, significant revenue for this year, and next.

I've seen enough to start building a small stake, but at this tiny mCap, it could become quite an exciting company over the next couple of years.

One question I do have as I have no experience with companies in this sector.... Do they tend to be allowed to run, or be swallowed up by a larger company?

[noli] 27/6/2013 18:33

This is from Feb but gives a cracking write up of the business.

[cfro] 27/6/2013 17:56

Thanks so much noli for all you hard research. The interview with Ami was especially good. I also agree that Check-6 looks particularly exciting.

I have been buying again today on a couple of occasions.

[noli] 27/6/2013 16:52

Hi Dig, i like what i see and have picked up a couple of shares, with 72% of the shares held by the company and the II's and with potential reccuring revenue streams and licences i can see this growing quite a lot. Only 47 mill shares around so not that many. I think they have 7 mill cash and a MCap of 13 mill with increasing revenues.

They look to have their fingers into a good number of pies and are starting to win larger contracts.

The oil/gas industry is very large as you know so if these guys can get a foot hold in it then i can see them going a long way. I emailed C6 asking what they were training via the SIM kits, still waiting for an answer at the mo though. I like the fact its well under the radar with very few posts and trades. It gives me a good chance to pick a few more up.