FLYHT Aerospace Solutions Ltd.
TSX Venture: FLY
Shares Issued: 142.5 million
Fully Diluted: 182.1 million
This afternoon’s, FLYHT quarterly conference call drew a significant amount of praise as well as questions to President & CEO Bill Tempany and Tom French, CFO.
Mr. Tempany opened the call with a review of recent announcements such as the purchase order from SKYBLUE for 218 aircraft out of China, “That order totals a little short of $12 million in onetime revenue and is probably in the neighborhood of $500,000 to $600,000 in recurring revenue in the first two or three years that those units are active.” It was further clarified during the call that these installs will initially be for voice communication and thus will bring a monthly recurring revenue rate in the $200 to $300 range, much lower than FLY’s current average in excess of $1,200 per month per AFIRS unit. However, the objective is to get the number up significantly over the course of time with the addition of data services.
Here are some other key highlights from the call:
- The company is up 42% in revenue so far this year compared to this same time last year.
- FLYHT now has 25 aircraft in China with AFIRS units up and running. Five installations are happening right now.
- R&D is wrapping up.
- Hopefully we will be shipping late this year, early next year for the L-3/Airbus program.
- Recurring revenue is continuing to climb. Recurring revenue (UpTime usage) was $881,903. An increase of 10.3% over the third quarter of 2013.
Also this morning, Nick Waddell President of The Cantech Letter published an interview with FLYHT CEO Bill Tempany. The Cantech Letter is Canada’s premier online magazine focusing on TSX and TSXV listed technology companies. Click here to view the interview. http://www.cantechletter.com/2013/11/flyht-aerospace-ceo-bill-tempany-talks-cantech-letter1114/