Wednesday, 28 March 2007

AMA Webcast Synopsis - Break-even in Q3!

For those of you who missed the AMS business update webcast, you can access the call here.

Of interest to investors, Mr. Tempany indicated that he expected installs to begin ramping up substantially and estimated the company would reach cash flow break-even by the end of the third quarter.
AeroMechancial is nearing the number of 60 installs of its real-time AFIRS technology in aircraft with a total of 232 units under contract. Based on past statements, the company has been sticking to the number of 170 units installed to be at break-even on a "recurring revenue" basis.
Cash flow break even and recurring revenue break-even are different items as AMS receives revenues from the sale of the AFIRS units, which then generate recurring monthly revenues once the units are installed.

Mr. Tempany also noted that AMA will no longer be sending out individual news releases on small contracts but will hold quarterly webcast/conference calls to update investors.
Of course, should AMS "crack the big one" that would obviously warrant a stand alone announcement.