Thursday, 4 October 2007

Europe, China and a mystery drive AeroMechanical

AeroMechanical CEO Bill Tempany said Q3 revenues will be down as previously forecast and the delay in the China contract has - among other factors - pushed forward the company's long sought after cash flow positive position.
But good times will roll in with the fourth quarter, Tempany predicted in the Oct. 4th webcast.
What will make Q4 results sizzle is a European customer is expected to sign on "in the next couple of days," Tempany said.
In addition, AeroMechanical's Chinese customer expects to start ordering for the massive commercial airline fleet there no later than February next year.
And, finally, the first aircraft manufacturer is expected to sign a contract to put AeroMechanicals' AFIRs equipment on board on the assembly line in the next quarter. But just who the aircraft manufacturer is remains a mystery.
"Year to date revenue is $2 million and we do expect Q4 to be significantly up from the last three quarters," Tempany said.
During his Q3 review, Tempany referred to a patent infringement lawsuit filed by Star Navigation against AeroMechanical as "frivolous (and a ) non issue."

Despite that assurance, several people identified as investors wanted to know more during the subsequent question period.

To hear the entire webcast and question period please click here.