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SimiGon Warns On Full Year Outlook, Israeli Air Force Revenue Delayed

[ 28 Jul 2017 10:03 ]

LONDON (Alliance News) - SimiGon Ltd on Friday warned it may not achieve market expectations for the full year, and was "disappointed" the revenue from its contract with the Israeli Air Force will not be recognised in its first half.

SimiGon, a developer of learning, training and simulation technologies, said procedural delays in concluding the signatory processes over its contract with the Israeli Air Force have persisted. The group said this has prevented revenue of USD800,000 from being recorded in its results for the first half of the year.

SimiGon said it continued to monitor progress with the contract, and expects the revenue from it will be recognised in the second half of the year.

The group said costs have been incurred in the period as a result of additional research and development investment in the business. As a result of these investments, SimiGon said it expects to report revenue of approximately USD2.0 million and adjusted net loss before tax of approximately USD600,000 for its half year.

SimiGon said it is optimistic on its long term growth opportunities, securing recurring revenue of over USD5.0 million for 2018.

"While we are disappointed that the revenue associated with the Israeli Air Force contract will not be recognised in the period, we are confident that there is significant upside potential from a number of the contracts we are currently working on," said President and Chief Exceutive Ami Vizer.

"We cannot, however, be certain that the recovery we expect to see during the second half of the year will lead to us achieving our full year market expectations, and we will update the market further as soon as we have greater clarity," he added.

Shares in SimiGon were down 9.5% at 19.02 pence on Friday.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.


SimiGon Warns On Full Year Outlook, Israeli Air Force Revenue Delayed - Alliance News

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