FLYHT Q2 Conference Call – CEO Expects Strong Second Half

FLY:TSX-V

On this morning’s FLYHT second quarter conference call, CEO Bill Tempany addressed a number of topics and questions around the release of Q2 financials and business activities. Right out of the gate, Mr. Tempany commented on the weakness in revenues experienced in Q2. Quarterly revenue was $1.5 million, down 30% from last year’s Q2 results of $2.2 million. The company however, is ahead of Q1, which would indicate it is headed in the right direction. Recurring revenues increased slightly to ~$893,000 from last year’s ~$846,000 and it was explained that this should improve in Q3 as customers that had been shut off due to nonpayment have restarted and a customer in the middle of a fleet switch is up and running again.  

Mr. Tempany noted that in Q2/2013, the company recognized significant orders from First Air and NetJets, which accounted for the strong second quarter in 2013. He emphasized that the third and fourth quarter of this year are looking to be very strong as the company has shipped more AFIRS units in July than in the entire second quarter.

Throughout the call, Mr. Tempany addressed a number of other items:

• He believes FLYHT is on track to be operations positive (EBITDA with IR and share based compensation removed) by the end of 2014.
• The company has approximately $5 million in modified working capital.
• The settlement with Sierra Nevada Corporation (SNC) has allowed the company to eliminate nearly $2 million in debt. The SNC relationship opened a new market to FLYHT. SNC will lead sales in the United States and NATO military and government manned and unmanned aircraft markets.  
• An initial regulatory report on aircraft tracking by the International Civil Aviation Organization is anticipated in late September and FLYHT will ensure it meets regulatory requirements as they are developed.
• On the sales front, there has been a great deal of activity in Asia. The company has hired a Singapore based sales person based on identified opportunities in the region. FLYHT is planning to add one or two full time sales positions.  
• The company is in discussions with Bombardier and other OEM’s with the objective of having AFIRS become a standard feature on aircraft.
• Mr. Tempany expressed that although its L-3 relationship has been successful and a good one, he believes that FLYHT does not require a third party to gain direct access to manufacturers. He is confident that the company is at the point where it can have those conversations directly with the manufacturers.
• When asked about progress in China, Mr. Tempany stated that FLYHT has already shipped 50 units and that the Company is the only certified Iridium provider in China.
• The company in Q2 launched FLYHTSafe, a new safety notification solution. Investors should expect to see more service add-ons being launched in Q3 & Q4, which will improve efficiencies and communications for aircraft and allow FLYHT to earn additional usage fees.
• In regards to the increase in expenses, it was explained that there will be a continuation of Investor Relations efforts focusing on U.S. and International investors and the company has experienced an increase in travel expenses as a result of ensuring that FLYHT has a presence at all the industry related meetings. Also, the reported R&D spending is a result of the continuation of securing AFIRS 228 Supplemental Type Certifications, which will continue for at least three years.  

To listen to the conference call, please click here.

Second Malaysian Airline Tragedy Renews Focus On FLYHT Aerospace Solutions Ltd.

FLY:TSX-V

FLYHT CEO, Bill Tempany, was in the spotlight today with an appearance on the Canadian network 'CTV Morning Live' to discuss the company’s technology in light of the recent downing of Malaysian flight MH17 over Eastern Ukraine.

While there was significant global media focus on the attributes of the company’s AFIRS technology following the March disappearance of MH370, additional questions have surfaced about what answers may have been provided in the most recent tragedy if the aircraft had been equipped with the system.

To view the interview with Mr. Tempany, click here.

Global Maxfin Reiterates STRONG BUY With A $1 Target For FLYHT With Update

FLY:TSX-V

In acknowledgement of the news issued today by FLYHT on the certification of the AFIRS 228S for A320 Aircraft, Global Maxfin analyst Joe MacKay issued an update to clients. In the report Mr. McKay says the implications of this announcement are positive for FLYHT.  Specifically stating “the process to certify AFIRS with Airbus has been underway since 2012 and was recently approved by Airbus. L3 is the world’s largest manufacturer of flight data recorders. Under the agreement with L3, L3 manufactures and installs the AFIRS units on the aircraft with FLYHT receiving a royalty payment of approximately $6,000/unit for a retrofit and $12,000/unit for a factory fit.”  

Further into his commentary he also points out that, under the L3 agreement “FLYHT then has the opportunity to sell applications and services to the end user, receiving 100% of the monthly recurring revenue.”

To receive a copy of the update please contact Global Maxfin analyst Joseph MacKay at (416) 741-1544. 

FLYHT AGM Presentation Videos Now Available Online

FLY:TSX.V

In case you haven’t seen it already, late last Friday FLYHT posted the video recordings of its AGM investor presentation, which was held on June 24th. FLYHT President Matt Bradley, Jeff Brunner - VP Certification Engineering & China Operations and Kent Jacobs - Technical Fellow provided presentations about key parts of the business.

To view the videos, please click here.

BBC Asks “Where is Flight MH370” - Is FLYHT’s Technology The Answer?

FLY:TSX.V

Few FLYHT stakeholders have had the opportunity to see a live demonstration of AFIRS. The BBC program Horizon recently provided the world with an insider view of the FLYHT technology in action as part of a documentary on the mysterious disappearance of the Malaysian flight.

This past spring, BBC crews were aboard a First Air aircraft in Ottawa, Ontario to film AFIRS in use with several minutes of the footage used in the documentary. First Air and FLYHT announced this past April that the airline was adding FLYHTStream’s automatically triggered, real-time data and live black box streaming capability to its fleet of B737, ATR and B767 aircraft. Click here to read the news release.  

The AFIRS system is highlighted in the documentary as a technology that could help prevent the future disappearance of aircraft.  To view the documentary, please click here (AFIRS is featured at the 50 minute mark).

- Brad Dryer

Grant Howard

Pope & Company Initiates Coverage On FLYHT – BUY With A $1.05 Target

FLY:TSX.V

Fadi Benjamin from Toronto based, Pope & Company has become the fifth analyst to initiate coverage of FLYHT Aerospace, with a BUY rating and a target price of $1.05.

The key points in the report titled “FLYHT VECTORING FOR GROWTH” are as follows:

• Immense market size:  A sizable and growing market of 20,310 airplanes in service, and 35,280  airplanes to be delivered in the next 20 years. 
• Differentiated/Purpose-Built: FLYHT’s technology is unrivalled by flight data gathering systems, in‐flight  entertainment, or passenger connectivity focused solutions.
• Value Creating To End Customer: Our analysis supports US$150,000 of direct cost savings per year per airplane from fuel management, maintenance rationalization , and accurate time focus only on program wins and moderate contribution from the sales force.  Applying this to Southwest Airlines’ fleet, net savings could contribute over US$60MM to the bottom line in 2013.
• Growth Catalysts: Our conservative assessment is based on realizing revenues from three  programs: SkyBlue (218 aircraft), Datang (415 aircraft), and an L‐ partnership with Airbus.  Significant upside potential exists from new program wins, a partnership with a Boeing  approved  factory  supplier,  and  supportive  direct  sales  into  other  airlines. 
• Valuation: Our valuation is based on a 5‐year DCF analysis using a discount rate of 10%  and a terminal value growth rate of 3.9%, in‐line with industry peer projections. Our target  price corresponds to an EV/EBITDA multiple of 14.8x on projected FY2016.  
• Investment  Recommendation:  We  rate  FLY  a  BUY  for  its  exceptional  growth  profile, differentiated product, and market size. In our opinion, FLYHT is ahead of its competition,  and presents  a  unique  and  sought  after  solution. 

For a copy of the Pope & Company research report on FLYHT please contact Fadi Benjamin at 416-588-9397 or by email at fadi@popecompany.com.

About Pope & Company

Pope & Company Limited is an independent full service financial services firm founded in 1962. Our long established history as one of the oldest member firms on the Toronto Stock Exchange allows us to take a unique and measured view of the markets. We provide institutional services through our Capital Markets division and individual services through our Asset Management division.

We have a proven track record of identifying undervalued opportunities. We are active in the trading of equities, syndicated bank debt, corporate bonds as well as certain distressed debt situations. We combine best-in-class corporate advice with our proprietary sources of institutional debt and equity capital. In addition we have in-house mergers, acquisitions advisory and capital structuring expertise. By consolidating advice and access, we offer our clients innovative capital markets solutions individually tailored to their requirements. 

Pope & Company is employee owned, enabling us to take an unbiased and concrete approach to client relationships while avoiding the conflicts encountered by many large investment banks. Pope is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and The Canadian Investor Protection Fund (CIPF).

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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BNN: Clarus Analyst – FLYHT Aerospace Could Benefit From More Plane Tracking

FLY:TSX.V

This morning on Business Day, a popular show on Canada’s Business News Network (BNN), Eyal Ofir, Technology Analyst for Clarus Securities discussed FLYHT Aerospace.

Mr. Ofir covers FLYHT and gives it a SPECULATIVE BUY rating with a $1.10 price target.

To view the segment, please click here  (FLYHT is discussed at the 5:40 mark.)

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT Conference Call & Global Update

FLY:TSX.V

FLYHT CEO Bill Tempany covered a broad range of topics in yesterday’s (May 14th) first quarter conference call with a strong emphasis on the status of key business initiatives such as China and L-3 Communications-Airbus as well as several key conferences that FLY representatives will be attending in the near-term.

In re-capping first quarter results, he noted that the organization remains focused on achieving the break-even point in 2014. In the quarter FLYHT generated $1.34  million in revenue; which represents a decrease of 21.5% over the same period last year. However, Q1 customer deposits were $1.30 million, an increase of 100.2% over the first quarter of 2013 and unearned revenue was $1.36 million, also a solid increase over last year.

In relation to FLY’s revenue model, Mr. Tempany expressed that it is important to understand the below points:

• When a customer makes an order, the customer gives FLYHT a deposit.
• Then when FLYHT delivers the order, it registers as "Unearned Revenue."
• When the unit is installed, and activated the sale them moves into AFIRS UpTime Sales.
• Then if the airplane is in service, FLY generates monthly AFIRS UpTime Usage fees. 

Mr. Tempany also spent considerable amount of time talking about the latest announcement from Inmarsat, as there were a series of questions on a recent announcement from the satellite company. It stated that it is now going to offer customers free real time data streaming, which speaks to the controversy surrounding the disappearance of Malaysian Flight 370.

He said that he believes this offer of free data streaming doesn't affect FLYHT. Flight-following is just one small piece of the technology that FLYHT provides, which is first and foremost designed to save airlines money and increase operating efficiency. That functionality, though important, isn‘t driving the sales of FLYHT‘s AFIRS units. For example: China's mandate is for satellite communications, or satellite phones. Inmarsat does offer satellite communications, however the system is more expensive than AFIRS and there a major dead zones, particularly over the poles.

Global Maxfin Analyst Joe MacKay sent some notes from his attendance at yesterday's ICAO (International Civil Aviation Organization) press conference on the offer of "free basic" airline tracking.

"ICAO indicated during its press conference that it was "thankful" to Inmarsat for their offer, but at the end of the day, the Inmarsat proposal "probably does not get us where we want to be, and we told them that today." ICAO is putting together a task force(based on 20 member states) that will review and make recommendations to ICAO by September (FLYHT is a member). They are working under a best practices methodology which means that members can be complaint based on what is best for their circumstances (i.e some members do not fly over water as much as others).

To listen to an archive of today‘s conference call, please click here. 

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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A Technology Insight on FLYHT Aerospace Drives A Positive Market Response

FLY:TSX.V

FLY stock moved to the positive side this morning after coming under recent pressure with much of the uptick attributable to an article posted in Technology Investment News. The article is called “Real Time Black Box Technology Takes Flight” and cites Portfolio Manager and Founder of Roadmap Capital, Hugh Cleland.

Mr. Cleland in his April letter to his fund’s investors went into great detail as to why FLYHT technology has the “go-to” technology. In the piece Mr. Cleland states “recent events (the disappearance of Malaysian Airline flight 370) have reinforced my expectation that FLY will be in the $1-$3 range within 3 years [200%-600% higher than current valuation].

Key highlights from the article:

• Current "Black Box Technology" is pre-internet - so vulnerable to communications mishaps that it's like attaching a message to a carrier pigeon.
• (FLYHT) has developed an emergency data streaming technology called "FLYHTStream". This technology sends critical data to ground-based operations using the Iridium satellite network through Iridium Communications.
• Inmarsat's (ISAT-LSE) recent offer to transmit GPS location data every 15 minutes for free is not expected to compete with FLY's instantaneous stream of aviation data points including: location, altitude, airspeed, pitch, roll, yaw, engine performance metrics and airframe indicators.
• Since January 2014 FLYHT has seen analyst coverage initiated by Clarus Securities, Byron Capital Markets, Salman Partners and Global Capital.
• "We are initiating coverage with a SPECULATIVE BUY recommendation and $1.10 target price," states the Clarus report, "We estimate that the opportunity in China could generate ~$24-57 million in hardware revenue over the next three years, while incremental recurring annual revenue could be as high as $11 million".
• The Salman Partners report forecasts "strong revenue and earnings growth in 2014 and 2015". It issued a SPECULATIVE BUY recommendation and a $0.85 target price [double its current share price].
• "We are initiating coverage of FLYHT with a STRONG BUY rating," states the Global Capital Report, "and a 12-month target price of $1.00."
• "Global movements catalyzed by the disappearance of Malaysian Flight 370 mean that the $2-$5 range for FLYHT is now quite possible on a 2-3 year basis," states Cleland, "Shorter-term, I will be surprised if we are not in the $1-$2 range by the end of 2014."

To view the full article, please click here.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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Global Maxfin Initiates Coverage On FLYHT: Analyst Count Continues to Grow

FLY:TSX.V

Toronto based Global Maxfin Special Situations Analyst Joe MacKay has initiated coverage on FLYHT Aerospace with a Strong Buy and a $1 target price.

Key highlights from the report include:

• FLYHT has developed strategic relationships with L-3/Airbus, NetJets, Datang, Mobile/COMAC, SKYBLUE Technology development (SKYBLUE).
• The number of patents in place and the complex and costly certification process create high barriers to entry.
• Forecasted revenue of $13.9M and $26.6M in 2014E and 2015E, respectively,
• EBITDA of $0.2M and 5.8M for 2014E and 2015E, respectively and EPS breakeven in 2014E and $0.03 for 2015E.

Upcoming catalysts include:

• Material sales to L-3/Airbus,
• Further progress with SKYBLUE in implementing China’s SATCOM mandate, and the production of the AFJ21.

He adds, “We are also looking for updates on FLYHT expanding its products to additional businesses and commercial aircraft OEMs. With the disappearance of Malaysia Airlines Flight 370, we will be monitoring regulatory developments with respect to the streaming of black box data.”

The report is titled “The Connected Aircraft” and was distributed to Global Maxfin clients and is available online, click here.  Joe MacKay can be reached at 647.776.1750 or by email at joem@globalmci.com.

Global Maxfin coverage adds to a growing list of firms covering FLYHT. Others include Byron Capital (Strong Buy - $1.25 Target), Clarus Securities (Spec Buy - $1.10 Target) and Salmon Partners.

About Global Maxfin Capital Inc.

Global Maxfin Capital Inc. (GMCI) is a Toronto-based full service investment dealer providing merger and acquisition advisory, capital raising service to middle market and emerging growth companies in the technology, telecommunications & industrial sectors in Canada.

http://www.globalmci.com/

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT: Update On The Team Visit To China

FLY:TSX.V

During the company’s last conference call on April 15th, FLYHT CEO Bill Tempany acknowledged that a team was heading over to China to discuss streaming and the status of the roll out of the mandated Satellite Communications program. We followed up with FLYHT about how the trip went and here’s what they said:

Multifunctional Control Display Unit
onboard the aircraft during the flight test

For five days last week, Jeff Brunner, FLYHT's VP of Certification Engineering and China Operations, and Michael Fang, the VP of China Operations were in China setting-up and participating in a flight test, for the AFIRS 228S onboard a customer's aircraft. Jeff was on the flight test as a delegate under FLYHT's Design Approval Organization status with Transport Canada, as he is certified.

When asked, Mr. Brunner expressed that “a cool” experience for him was calling FLYHT President, Matt Bradley and Kent Jacobs, Technical Director, Advanced Applications while in the midst of the flight test from an AFIRS enabled satellite phone. The two were on Vancouver Island and took the call on their AFIRS enabled satellite phone.

Qionglai Mountain range which
separates Sichuan Province from Tibet

Mr. Brunner said, "I have to admit that, being more of a witness than one who lived and breathed the 228’s development, I wasn't quite prepared for the emotional rush that I experienced when I made the first 228S call to Matt and Kent from the airplane, half way around the world from Chengdu, China to Vancouver Island, then again when the wheels left the ground and once more when they touched down after a wholly successful test flight."

FLYHT is currently in the process of adding the AFIRS 228S to the A320 Supplemental Type Certificate that it holds for the AFIRS 228 product line in China. The successful test flight that Mr. Brunner participated in was a very large step towards securing this certification. In December 2013, Airbus delivered its 1,000th  A320 into China. http://www.airbus.com/company/worldwide-presence/airbus-in-china/

Of note, FLYHTStream™ the company’s emergency blackbox data-streaming functionality has not been ordered yet by any customers in China. However, according to Bill Tempany the FLYHT team is working on it.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT Achieves Major Milestone With Millionth Flight & Cantech Article

FLY:TSX.V

On the tailwinds of recent media attention, FLYHT recently announced that clients have flown one million flights using their Automated Flight Information Reporting System (AFIRS). “The steady growth is exciting," noted CEO Bill Tempany. In addition to this increased usage, the company is adding value with additional services that have been well received by customers. In particular the Fuel Initiative Reporting System Tracker (FIRST), which helps airlines optimize their fuel efficiency has received very positive feedback.

To view the news release, please click here.

The growth of FLYHT has not gone unnoticed. A recent Cantech Letter article written by Nick Waddell highlights a recent buy recommendation published by Clarus Securities. The letter highlights an anticipated 103% upside from its current trading range and one year target of $1.10 and attributes the target to FLYHT having access to the Airbus supply chain (OEM and retrofit), strong entry to China and a worldwide concern for improved in flight communications.

To view the CanTech article click here.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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Byron on FLYHT: Expect Accelerated Adoption Driven by Regulation Change

FLY:TSX.V

This morning Byron Capital Markets Analyst, Dev Bhangui issued an update on FLYHT to clients. In the report Mr. Bhangui reiterates his STRONG BUY recommendation and target price of $1.25 per share.

Click here to view the report. 

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT Conference Call & First Air News

FLY:TSX.V 

After market close today, FLYHT hosted its year end conference call. The call came after the company released its year end numbers which was highlighted by its revenue growing by 23% to over $8 million. Also of significance was a decrease in cash used in operating activities by over 36%.

Bill Tempany, CEO of FLYHT handled the call and provided a high level overview of the company’s achievements based on its objectives over the past year. Here’s how the company did:

Drive a substantially higher valuation through accelerated revenue growth and profitability

• Successfully increased revenues by 23.7% over the previous year.

Major Airbus operator for fleet retrofit 2013 and begin shipping from Airbus factory by late 2013

• Began shipping units in December 2013 and January 2014.

Build on strategic relationships to accelerate growth

• China: Continued to ship units to airlines in the country. Partnered to provide products to AVIC and COMAC. Agreement established to install AFIRS on the ARJ21 fleet.
• NetJets Transportes Aereos SA (“NetJets”): Installations on 10 aircraft complete in Q2 2013. Continue to work with NetJets to advance the program.
• Nigeria: Continued flight tracking and safety management system dashboard Nigerian Civil Aviation Authority (“NCAA”) Director General being replaced before program will resume in high gear.

Protect our markets by providing superior technology and service

• Expanded our STC list.
• Launched the Dragon.

Become cash flow positive in 2013

• Did not achieve cash flow positive by the end of 2013; however according to Mr. Tempany’s comments on the conference call, “This was a result of not receiving expected payment from Chinese orders by the end of the year. Some payments were however received in the first quarter.”

 Other key points from the conference call:

• FLYHT is sending a team over to China to discuss data streaming and status of roll out of mandated Satellite Communication program, which specifies every commercial aircraft in China is to be equipped with a Sat Com solution by the end of 2017.
• Three clients applied and received a discount from insurance providers because of having AFIRS™ installed on the airlines’ aircraft.
• Currently talking to 50 – 70 airlines about installing AFIRS on their fleet.
• FLYHT also announced earlier today that First Air is the first airline to proactively add FLYHT’s FLYHTStream™ capability to its entire fleet. FLYHTStream is a service provided by the AFIRS technology that automatically triggers, real-time and live black box streaming in an emergency situation. In the news release the VP of Flight Operations at First Air stated, “Financially, AFIRS has paid for itself by saving First Air tens of thousands of dollars in flight management expenses, and FLYHTStream is only an incremental cost that is incurred when triggered, making the solution very cost effective." Click here to view the First Air news release.

 To listen to an archived version of the conference call, please click here.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT In The News – Garners Global Attention

FLY: TSX.V

This morning FLYHT issued a news release acknowledging the unprecedented requests by the media for interviews about FLYHT and its AFIRS(TM) technology.

The FLYHT team has done an effective job, communicating that real-time satellite communication does exist for aircraft. In fact, it not only exists but it is affordable (about $100,000 installed) and currently active on over 350 aircraft around the world. 

As so much attention has been focused on the emergency feature of AFIRs, a number of key facts have been missed in relation to the cost saving benefits that the technology provides. Independent verification notes that the annual savings per aircraft equate to the initial capital cost. As stated in a FLYHT presentation:

• Customer evaluations show savings of $100,000 per plane per year.
• Airlines save money with better and more timely information.
• Reduce turn-around time.
• Reduce fuel consumption.
• Have the right people in the right place at the right time.
• Reduce repair costs by having better information to make decisions.

Another interesting point is that AFIRS is independent of those systems such as the transponder that can be turned off from the cockpit. AFIRS will continue to work as long as the aircraft is able to fly and there is power. If there is no power, the system does have a back-up battery.

To view an up to date archive of media coverage, please click here. 

To view today's news release, please click here.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT Video On FLYHTStream™

FLY:TSX.V

FLYHT Aerospace has responded to the international community this week with information about its real-time data streaming program. We wanted to bring your attention to a video that the company produced late last year on its  FLYHTStream technology.  

According to FLYHT’s website, “FLYHTStream™ is a proprietary Emergency Streaming Mode providing proactive risk management for aircraft awareness and incident analysis.  FLYHTStream automatically transmits four-dimensional GPS-based position and flight data recorder information when automatically triggered by an airborne event, initiated in the air by the pilot or on the ground by the airline. The real-time streaming of critical flight data to the ground creates a “virtual black box”, allowing the data to be analyzed immediately.”

Here is a link to the page that hosts the video on FLYHT's emergency streaming service:  

http://flyht.com/products/flyhtstream/

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT CEO BNN Interview & Air France Recommendation

FLY:TSX.V

At 12:30pm ET, Bill Tempany, CEO of FLYHT Aerospace was interviewed by Michael Hainsworth on Canada’s Business News Network. Mr. Tempany spoke about the missing Malaysian aircraft, the current mandates coming down from countries like China, and FLYHT’s robust recurring revenue model.

Click here to view the interview - http://watch.bnn.ca/#clip1073072

Also, today just after 1pm ET, FLYHT Director Richard Hayden appeared on CNBC and spoke about FLYHT data streaming functionality. Link to the CNBC interview - http://video.cnbc.com/gallery/?video=3000254831&play=1

Of note in 2009,  Air France Flight 447 crashed in the Atlantic ocean and it took authorities approximately 5 days to locate the crash site and nearly two years to retrieve the black box at an enormous cost. As a result, the BEA, the investigative body for the Air France Flight 447 disaster, recommended that airplanes be equipped with triggered data streaming, like FLYHT AFIRS solution delivers.

Click here to view the full BEA report with the recommendation on page 206. http://www.bea.aero/docspa/2009/f-cp090601.en/pdf/f-cp090601.en.pdf

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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FLYHT CEO Bill Tempany On BNN Today

FLY:TSX.V

We have confirmed Bill Tempany will appear on Canada’s Business News Network (BNN) today at 12:30pm ET to discuss FLYHT and comment on the missing Malaysia Airlines Flight 370, which is worldwide news right now.

From CNN’s website:

Malaysia Airlines Flight 370 took off from Kuala Lumpur shortly before 1 a.m. Saturday (1 p.m. Friday ET). The Boeing 777-200ER, carrying 227 passengers and 12 crew members, went missing while flying to Beijing.

Since then, teams of searchers from Vietnam, China, Singapore, Indonesia, the United States, Thailand, Australia, the Philippines and New Zealand have been working alongside Malaysians to scour the Gulf of Thailand, part of the South China Sea that lies between several Southeast Asian countries.

The focus has now shifted to the Andaman Sea, near Thailand's border, after radar data indicated the plane may have turned around to head back to Kuala Lumpur.

But the pilot apparently gave no signal to authorities that he was turning around.

From 7 a.m. to 7 p.m., planes flew over the vast waters. Ships searched through the night.

http://www.cnn.com/2014/03/10/world/asia/malaysia-airlines-plane/index.html?hpt=hp_t1

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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BNN – McWhirter: FLYHT Aerospace Could Be A Double!

FLY:TSX.V

FLYHT Aerospace hit $0.61 today after comments from Selective Asset Management Portfolio Manager, Bob McWhirter, while appearing on BNN TV’s, The Street.

Mr. McWhirter discussed FLYHT’s long- term, high profit, recurring revenue model and potential double as outlined in Byron Capital’s recent research report with its twelve-month $1.25 price target. To view The Howard Group’s blog of January 24th, click here.

Much of the future increase in recurring revenue will be driven by FLYHT’s relationships. In its recently released Technology Watch List report on FLYHT, Clarus Securities outlined the company’s positive position in China and the L-3 Communications and Airbus relationship.

“Leverage relationships with channel partners to penetrate OEM market (factory installs):

• L-3 Communications: FLYHT has cemented a strong partnership with L-3 Communications that was originally announced in 2009. L3 is the world’s largest supplier of black boxes and through this partnership is licensed to resell FLYHT’s technology. FLY will generate an initial royalty upon installation and a recurring revenue component once installed to support the ongoing communication backbone. The L-3 relationship is bearing fruit as it was able to secure the Airubs A320 contract for the Iridium Solution. L-3 drove the initiative with Airbus, thus making the FLYHT technology a factory option on the Airbus A320 family.
• Datang Mobile Aviation Group - In late 2013, FLYHT announced that it had been selected (through Datang) to provide the AFIRS 228 end-to-end solution along with FLYHTStream to the Commercial Aircraft Corporation of China (COMAC) and that the system has been successfully installed and tested on the ARJ21. Going forward it will be a standard feature of that aircraft which is anticipated to start shipping in late 2014 and currently has 400+ units on order, primarily from Chinese airlines.”

Click here to view the video clip. Mr. McWhirter discusses FLYHT at the 3:50 mark.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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Taking FLYHT – One Plane At A Time

FLY:TSX.V 

Clarus Securities Analyst Eyal Ofir has placed FLYHT Aerospace on his firm’s Technology Watch List. The nine page report titled, Taking FLYHT – One Plane At A Time, was written for institutional clients of Clarus. It outlines why Mr. Ofir believes “FLYHT has the products, go-to-market strategy, and timing that is ripe for the company to be able to leverage a number of industry trends to drive significant growth in the coming few years.”

Mr. Ofir adds, “FLYHT has partnered with L3 Communications, received a number of aviation approvals for its solutions, and has gained a solid entry into China, a market that is experiencing regulatory changes. The combination of these items could make 2014 a breakout year with 2015 experiencing significant revenue growth and earnings leverage.”

Under the heading, Long Sales Cycles & Regulatory Approvals Provide a Multi-year Advantage, he provides further comment that, “Over the years, the company has obtained numerous certifications for its products that take months and sometimes years to obtain, including a Satcom approval into China that took almost five years. We believe that this leg work provides FLYHT with a significant time-to-market advantage. The company now finds itself positioned as an option on Airbus factory orders, having a strong and large partner in the industry with L3 and ahead of the curve in China serving multiple carriers via local relationships.”

Due to the nature of this report, we are not allowed to post it online.

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Shares Issued: 142.5 million
Fully Diluted: 182.1 million

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