News Details

SimiGon continues SIMbox success with $2.4m contract

SimiGon Limited (LSE: SIM), a global leader in the provision of simulation solutions, announces that it has signed a $2.4m contract with an international customer.

The customer has bought licences for the provision of software and services based on SIMbox architecture, which enables users to develop flexible, PC-based training solutions. It is expected that SimiGon will deliver the software to the customer and will recognize revenues from the sale in the current financial year. The Company believes that this can be the first step of several with this customer.

The revenues to be recognized in this contract are already factored into market expectations for the Company’s performance in 2007 and the deal itself illustrates the changing nature of SimiGon’s business, from short-term programs with short sales cycles into multi-million dollar programs with major customers. While this shift places SimiGon in a much stronger position to achieve long-term growth, in the short-term in such deals there remains a potential timing lag between the Company being selected as the preferred supplier of simulation training technology and commencement of the delivery of the systems. The Company expects that, as revenues grow, the potential overall impact of such timing lags will reduce.

SimiGon President and CEO, Ami Vizer said: "SimiGon has made significant progress in expanding the market and customer base for SIMbox throughout 2007 and is delighted to have signed a substantial deal with another international customer. This deal provides another strong endorsement both of the strength of the SIMbox product, as well as our business model."