SimiGon Limited USAF extends SimiGon support contract

TIDMSIM

SimiGon Limited

04 May 2020

4 May 2020

SimiGon Ltd

("SimiGon" or "the Company")

USAF extends SimiGon support contract

SimiGon awarded Contractor Logistics Support (CLS) contract extension for USAF T-6A training devices

SimiGon, (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that the United States Air Force (USAF) has awarded the Company a contract extension to continue its Contractor Logistics Support (CLS) for SimiGon's SIMbox-based T-6A Level 5 FAA Compliant Flight Training Devices (the "Contract").

Under the Contract, SimiGon will continue to provides turnkey onsite and offsite support services (the "Service") for the sixteen T-6A Level 5 Flight Training Devices (FTD) for a period of 6 months (the "Initial Extension Period"), with options to extend the Service period for an additional 12 months (the "Option"), totaling 18 months.

The Initial Extension Period for which the Company will be entitled to invoice for its Service, is worth up to $0.7 million. The total potential value, assuming the Option will be exercised by the USAF, for which the Company will be entitled to invoice for its Service, is up to $2.1 million for the total 18-month period. The expected revenue from this Contract was already factored into management's expectations for year 2020.

SimiGon Chief Executive Officer and Executive Chairman, Ami Vizer, said: "The CLS contract extension to continue our support of the URT training programme is very gratifying as it demonstrates USAF's confidence in our ability to support a programme of great importance. SimiGon's capabilities have also grown along with the programme's high training volume, expanding far beyond software and integration services to also include maintenance and support of the entire training device, comprised of fully functional cockpits, projectors and domes, as well the relevant spare parts. We expect this Contract to generate new business with the USAF and other Government end users."

Enquiries:

 
 SimiGon Ltd 
 Ami Vizer, Chief Executive Officer and 
  Executive Chairman                             [phone] 
 Efi Manea, Chief Financial Officer 
 
 finnCap (NOMAD & Broker)                        [phone] 
 Henrik Persson/ Matthew Radley (corporate 
  finance) 
 
 

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May 04, 2020 02:00 ET (06:00 GMT)