Recent News

SimiGon Ltd

("SimiGon" or "the Company")

Transaction in Own Shares and Total Voting Rights

SimiGon Ltd (LSE: SIM), a global leader in modeling, simulation and training solutions, announces that, pursuant to the share buyback programme (the "Programme") announced on 1 December 2017, the Company purchased 30,000 ordinary shares of 0.01 NIS each in the capital of the Company ("Ordinary Shares") at a price per Ordinary Share of 15 pence ("Buyback Shares") through finnCap Ltd (acting as the Company's broker) on 5 June 2018.

The Buyback Shares, along with any other Ordinary Shares purchased by the Company pursuant to the Programme, will be held in treasury.

Following the purchase of the Buyback Shares, the total number of voting rights in th...

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SimiGon Ltd

("SimiGon" or "the Company")

SimiGon awarded USAF technician training contract

SimiGon to provide Virtual Reality simulation based training for USAF De-icing technicians

SimiGon (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that the United States Air Force (USAF) has contracted the Company to deliver a Virtual Reality (VR) Aircraft De-icing Simulator (the “Contract”). Securing this contract highlights the Company’s ability to identify new markets and applications for its traditional customer base.

As part of the Contract, SimiGon will deliver its SIMbox-based VR aircraft de-icing training product. By incorporating fully immersive VR with SimiGon’s ...

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SimiGon Ltd

(“SimiGon” or “the Company")

Audited Full Year Results

SimiGon Ltd (LSE: SIM), a global leader in simulation and training solutions, is pleased to announce its audited full year results for the year ended 31 December 2017 (“the Period”).

Financial Highlights

• Revenues of $4.34 million (2016: $6.02 million)
• Net loss of $0.95 million (2016: net profit of $0.36 million)
• Gross margin 78% (2016: 69%)
• Basic and diluted loss per share of $0.02 (2016: earning per share $0.01)

Operational Highlights

• Continued success in securing additional business in core defence-related market:
o Successfully leveraged the USAF T-6A Flight Training Devices (“FTD”) upgrade to win Contractor Logistics Support modification;
o Successful support for Lockheed Martin’s UK Military Flight Training System (“UKMFTS”) including extended onsite and offsite development program support and additional licenses
• Delivery milestones for $2 million contract announced in June 2016 for the Israeli Air Force for F16 maintenance trainers (IAF F16 Maintenance Trainer);
• Delivery milestones completed for large scale contract as prime contractor, including the successful completion of all systems delivery milestones for $6.7 million contract announced in June 2013;
• Continued support for major military flight training programmes including advanced jet training program and the U.S. Air Force Air Education Training Command Undergraduate Remotely Piloted Aircraft Training (“URT”);
• Continued Research & Development (“R&D”) efforts to position the Company for new high growth market opportunities and support simulation based training across all hardware devices; and
• Continue to identify additional opportunities and expand into the commercial and civilian training markets.

Post Period Event

• Signed a contract with the US Federal Aviation Administration (“FAA”) to deliver the Company's SIMbox simulation software, SIMbox simulation development tools, and engineering services for the FAA's Advanced Unmanned Aircraft System Research Simulator ("AURS").
• Awarded a 28 month contract amendment by the USAF for additional Contractor Logistics Support (“CLS”) services for SIMbox-based T-6A Level 5 FAA Compliant Flight Training Devices (FTD).
• Bought back 225,000 ordinary shares of 0.01 NIS each in the capital of the Company at the price of 15.218 pence as part of the on-going share buyback program.

Mr. Ami Vizer, SimiGon’s Chief Executive Officer, stated:

“As previously announced the financial results for the Period have been adversely affected by a number of contributing factors resulting in both revenue and profit performance being behind what we had hoped to achieve at the outset of the year. Procedural delays in concluding the signatory processes for the significant contract with the Israeli Air Force resulted in the contract commencing later in the Period than expected. In addition we have only been able to recognise half of the revenue, despite recognising all of the costs, for another significant contract in the civilian training market.

Despite these frustrating setbacks, related to the timing of revenue recognition rather than actual underperformance, the board remain optimistic about the long term growth profile of the business. We are confident that the work we have continued to do in relation to research and development and repositioning the Company to be seen as a leading technology partner across a number of markets will come to fruition. This confidence is underlined by the fact that we have a backlog of over $20 million over the next ten years, approximately $5 million of which is expected to be delivered and recognised in 2018 (including the contract signed with a particular customer in the civilian training market).”

Enquiries:

SimiGon Ltd

Ami Vizer, Chief Executive Officer

+1 (407) 951 5548

Efi Manea, Chief Financial Officer

finnCap (NOMAD & Broker)

+44 (0) 20 7220 0500

Stuart Andrews/ Henrik Persson / Scott Mathieson (corporate finance)

Stephen Norcross (corporate broking)

Overview

While the Company's financial performance for year 2017 has been disappointing, the underlying business remains profitable and continues to perform well with new business won and recurring revenues from existing strategic partners. The pipeline of new business in the Company's core military, aviation and non-military verticals remains strong and the Board is encouraged by new opportunities identified in the mass application market. This is demonstrated in the Group’s ten year backlog of over $20 million with $5 million expected to be recognized as revenue in FY2018 (including the contract signed with a particular customer in the civilian training market).

As announced in the trading update in January 2018, procedural delays in concluding the signatory processes over the IAF F16 Maintenance Trainer were resolved later in the Period than expected. In addition, the Company has been unable, as previously announced, to recognize approximately $0.7 million of revenue related to services provided to a particular customer in the civilian training market, for which partial payment has yet to be received. The Company had initially taken a very prudent approach to the recognition of revenue from this contract but, following discussions with the customer and the Company’s auditors, revenue has been partially recognized and associated costs fully recognized in this period. Discussions continue with that customer. Together with ongoing investment in the business, our reported results for the Period have been affected. For the 12 months ended 31 December 2017, revenue was $4.34 million (2016: $6.02 million) and loss before income tax of $0.96 million (2016: profit before income tax of $0.29 million).

The Company maintains a strong balance sheet with liquid cash balances of $7.79 million as at 31 December 2017 as compared to $8.14 million as at 31 December 2016.

Notwithstanding the financial performance having been adversely affected by events outside our control, during the year, the Company continued to progress operationally with the underlying business, including the successful delivery milestones of its long term contracts. This includes, final deliveries for a $6.7m aviation training contract initially awarded in June 2013, delivering project milestones with Check-6 for training in the energy and mining industries and successfully continuing the URT program. In addition, as a result of successful deliveries and proven technology, SimiGon was awarded additional work scope in relation to UKMFTS program after successfully converting delivery of T-6A FTD into an additional support contract with the USAF.

The Company’s R&D team continues to stay ahead of the market with major advances in simulation streaming, graphic engine and Image Generation capabilities, Machine Learning and Training Management System infrastructure to boost SIMbox technology and increase market penetration across military and civilian training markets. Significant progress has been made in adapting the platform for expansion into new domains in order to leverage the Company’s technology beyond the core defence market into commercial verticals and civilian / consumer applications and to be in line with a fundamental shift in training through immersive experiences, including Virtual Reality, Augmented Reality and Mixed Reality, rather than reading manuals.

In addition to its traditional licenses business, SimiGon’s Software as a Service (“SaaS”) based business model continued addressing the market with SaaS based contracts. It is SimiGon’s flexibility in being able to offer both business models that is a key differentiator in the market. SaaS based contracts now represent more than half of the business in terms of total revenue. The Company expects to maintain a consistent level of SaaS revenue in the near-term. The Company’s base annual SaaS based contracts enhance SimiGon’s recurring revenues, providing greater visibility and backlog as these are signed, unrecognized contracts supporting its growth.

SimiGon has been engaged in identifying new market opportunities in which it can deploy its advanced training and simulation technology solutions. Identified target markets include civilian driver training and civilian aviation. In addition, the company has continued to commercialise opportunities in other vertical civilian markets such as the oil and gas industry, maintenance training and construction equipment training. This provides the Company with an opportunity to pursue as a result of the fundamental shift in “learning by doing,” supported by Simulation Based Training technologies, rather than user manuals.

Operational Review

The Company remains at the forefront to of design and application of highly technical simulation and training solutions. SimiGon’s core technology platform, SIMbox, and associated services were developed to provide large simulation training programmes to governments and private sector organisations. By leveraging the highly agile, core SIMbox technology platform, simulation content of can be applied across multiple devices to create a learning environment for a range of domains.

SimiGon’s strategic, simulation-based training programs are available in the traditional license fee business model or as SaaS. The Company’s flexible business strategy allows it to address a broad range of training domains across various sectors.

Markets

The Company characterizes its target markets as follows:

Military and defence related industry

The Company’s track record of on-time and cost-effective solutions and deliveries in the military and defence industry has led to winning new military and non-military related contracts in different geographic territories, as well as add-on contracts with existing customers.

SimiGon has historically supplied large training and simulation environments for the US Government and friendly nations. Within this core market, the Company continues to cement its position as a preferred technology supplier for the premier military training programmes, such as the UKMFTS, IAF F16 Maintenance Trainer and the USAF T-6A FTD.

The Company is constantly working to position itself to win large military training mandates opportunities.

Civilian and Commercial vertical markets

The civilian, Smart Education and Learning market is expected to grow nearly 25% annually, from $193.24 billion in 2016 to $586.04 billion by 2021, representing new opportunities for SimiGon.

The Company has identified opportunities within the market as training techniques develop and begin to encompass more Virtual Reality, Mixed Reality and Augmented Reality. The emerging trend towards Simulation Based Training, led by dynamic Virtual Instructors is gaining momentum, with consumers demanding more immersive training in learning and training regimes.

SimiGon is taking advantage of this cultural and demographic shift - and opportunity – amid the wider consumer market with a mature and comprehensive market ready training solution. For example, the Company is using the Israeli Air Force F-16 maintenance contract announced on 20 June 2016 as a working case study of the benefits of its products to pursue civilian aviation maintenance training mandates.

The Company’s disruptive, commercial off-the-shelf (COTS) technologies can be used to create top layer application content to deliver training environments in vertical commercial markets, including commercial aviation, homeland security, driver safety, medicine, energy. These targeted verticals share similar requirements to the defence-related industries in that they are highly regulated and require workers to be highly skilled and constantly developing and training. SimiGon is aggressively pursuing opportunities to grow market share and broaden the applications for its software offering in new domains.

Among the Company’s advances in the civilian segment include a $0.1 million contract with the FAA to deliver its SIMbox simulation development tools and training in support of the FAA's advanced Unmanned Aircraft Systems Research Simulator ("AURS"). This contract is a significant milestone in SimiGon's expansion into civilian vertical markets and demonstrates the market's recognition of SIMbox as an effective R&D toolkit for design and development as well as an advanced training system platform. As announced on February 19, 2018, SimiGon has secured an additional contract with the FAA providing the Company's SIMbox simulation software, SIMbox simulation development tools, and engineering services for the FAA's AURS program.

Business Model

SimiGon's strategy, in line with market requirements, is to focus on long-term, high value, sticky SaaS license contracts that provide better revenue and profit visibility as a result of distributing over the Period in which they are provided rather than on single lump sum license sales.

With SaaS-based contracts, the recurring maintenance and support stream is already included in the contract terms. In addition, the Company maintains flexibility with its traditional perpetual license fee model where the Company is paid for software license and support, as well as providing turnkey solutions for customers and partners as a Prime contractor or Sub-contractor.

Growth Strategy

SimiGon’s focus on business growth is to increase its footprint within the existing customer base through continuous product innovation and expand into new domains using the experience and technologies developed from its defence contracts.

SimiGon’s highly scalable, robust COTS technology is ideally positioned to address new domains with minimal customization. New projects and markets utilize the existing product infrastructure and developer tools to create the new application content; once developed, it is leveraged to target the full market. The Company’s platform has an extensive track record of success to support this effort.

The multiple market opportunities provided the Virtual Reality market which is estimated at more than $30 billion by Forbes excite the Company, as its training applications are already benefiting from its plug & play capability with various Virtual Reality headsets.

R&D

The Company’s commitment to R&D is integral to growth, ensuring it remains at the forefront of new technologies. This allows the Company to pursue new opportunities while maintaining a business of solutions, upgrades and enhancements to deepen its relationship with existing clients and capture new customers.

SimiGon achieved numerous R&D milestones, including compatibility and support for Virtual Reality headsets. The Company sees the rise of Virtual Reality as integral to the provision of cost-effective, fully immersive training solutions, in the near future, and is well prepared to meet demand. Another major investment has been made in improving its graphic engine capabilities to support high resolution simulation models and terrain databases so high fidelity training devices can now be fully driven by SimiGon software and provide complete scalability across the hardware spectrum. Always seeking ways to improve and better support training developers and end users, SimiGon has also turned its attention to enhancing its user interface, further differentiating SimiGon from the wider market.

On the marketing side, the Company has boosted marketing efforts and collateral, including the launch of a new corporate website along with improvements to its digital marketing capabilities. These have been designed to support the Group as it ramps up its campaigns to enter new markets and engage new customers as well as growing market presence in markets it already operates.

Significant contracts

New contracts

In November 2017, SimiGon received final regulatory approval for a $2 million purchase order received from the Israeli Air Force ("IAF") (initially announced on 20 June 2016). As reported in the Company's interim results on 25 September 2017, the approval processes in respect of the contract has been subject to ongoing procedural delays. The contract is for the provision of F-16 maintenance simulation based training systems to the IAF's technician school in Haifa. The client-server system will support 60 trainees annually and each trainee will have a personal workstation allowing them to learn avionics and front line maintenance with the support of a virtual instructor for a self-paced syllabus in a fully immersive, virtual environment.

SimiGon was awarded with a prime contract with the US FAA to deliver the SIMbox simulation development tools and training in support of the FAA's advanced Unmanned Aircraft Systems ("UAS") Research Simulator. This contract was a significant milestone in SimiGon's expansion into civilian vertical markets including civilian aviation and civilian UAS. It also establishes the FAA as a SIMbox Certified Organization ("SIMCO"), providing the FAA with an internal SIMbox development capability. This win also demonstrates the market's recognition of SIMbox as an effective R&D toolset for design and development as well as an advanced training system platform.

Long term contracts

The Company maintained its solid portfolio of long term partnerships developing further business and providing revenue visibility. Many of these partnerships are expected to continue with additional contracts through 2018 and beyond.

The support of SimiGon for UKMFTS as a technology and services provider to Lockheed Martin, has continued and now in its eighth year. The Company continues to deliver under this long term contract, exceeding partner and end user expectations of SimiGon's technologies and performance.

A maintenance and support contract awarded to SimiGon by USAF for the SIMbox based T-6A Modular Training Devices SimiGon delivered as part of a June 2011 contract further demonstrates the long term nature of the relationship with this strategic customer.

During 2017, SimiGon continued in its efforts to support this customer and expand this relationship. As a result, The Company was awarded on February 2018 with a 28 month contract amendment by the USAF for additional Contractor Logistics Support (CLS) services for SIMbox-based T-6A Level 5 FAA Compliant Flight Training Devices (FTD).

Check-6 Inc., one of the leading providers of training solutions to the energy and mining industries, is a good example of SimiGon's ability to help companies achieve new growth. Throughout the life of the contract, SimiGon has successfully executed its agreed deliverables. This relationship continues to yield long term business opportunities. The Company is optimistic that additional agreements will be executed to extend this relationship.

SimiGon’s relationship with a major existing European customer, which it has been supplying with software and services since 2009, continues to yield long term business. The customer is operating SimiGon training solutions in four different training centers daily and is receiving very positive customer reviews. SimiGon is certain that this relationship will continue and lead to additional future orders.

SimiGon continued its support for successful Unmanned Aerial Vehicle ("UAV") training solutions for a leading provider in the small tactical unmanned aircraft systems remains solid. Through SimiGon's ecosystem, the SIMbox technology supports initial operator training and advanced operational training at the schoolhouse.

As announced by the Company on 5 July 2017, SimiGon had successful completed all systems delivery milestones and received the requisite client confirmations in relation to the $6.7 million contract announced in June 2013. The final solution provided to the customer offers the trainees with personalized, dynamic training lessons while utilizing SimiGon's Virtual Instructor technology. The successful collaboration with the customer has led to a more advanced training system being developed. The experience gained from this turnkey programme will be useful in marketing SIMbox training solution to other potential customers worldwide, extending SimiGon's market reach.

Share buy-back programme and Annual Dividend

On December 1, 2017 the Company put in place an irrevocable, non-discretionary programme for the repurchase of up to USD$106,000 (approximately £79,000) of its ordinary shares (the "Programme"). The Programme is independently managed by finnCap Ltd, the Company's nominated adviser and broker, which will make trading decisions independently and without the influence of the Company. Any ordinary shares repurchased on behalf of the Company will be held in treasury and will be notified to a Regulatory Information Service in accordance with the AIM Rules for Companies. The Programme will last until the end of the Company's general meeting in 2018 or until the full USD$106,000 has been utilized, whichever is the soonest. The Programme is conducted within the pre-set parameters and in accordance with the authority granted by the Company's shareholders to repurchase shares at its last general meeting held on 8 September 2017. To date, pursuant to the Programme, 225,000 shares have been bought back on March 2, 2018 at the price per Ordinary Share of 15.218 pence.

The Board does not intend to recommend the payment of a dividend.

Financial Performance

Revenue for the year ended 31 December 2017 was $4.34 million, compared to $6.02 million in 2016. 40% of SimiGon's revenues came from North America (2016: 44%), 42% from Europe, Middle East, South America and Australia (2016: 19%) and 18% from the Far East (2016: 37%).

Gross profit for the year ended 31 December 2017 was $3.36 million, as compared to $4.1 million for the year ended 31 December 2016. Accordingly, gross margins increased to 78% for the year ended 31 December 2017 as compared to 69% for the year ended 31 December 2016.

Net loss for the fiscal year of $0.95 million (2016: net profit of $0.36 million).

Total operating expenses for the year ended 31 December 2017 increased by 10% to $4.32 million as compared to $3.91 million for the year ended 31 December 2016. Research and development expenses for year ended 31 December 2017 increased by 22% to $2.09 million as compared to $1.71 million for the year ended 31 December 2016, mainly due to increase salary expenses. Marketing expenses for the year ended 31 December 2017 increased by 7% to $1.17 million as compared to $1.09 million for the year ended 31 December 2016 mainly due sales commissions and salary expenses. General and administration expenses for the year ended 31 December 2017 decreased by 5% to $1.05 million as compared to $1.11 million the year ended 31 December 2016 mainly due provision for doubtful debts recorded in year 2016.

The Company has recorded a net income tax credit of $0.03 million for the year ended 31 December 2017 mainly as a result of a deferred tax asset in relation to the expected utilization of carry forward losses against expected income in future years.

As a consequence of the factors above, operating loss for the year ended 31 December 2017 amounted to $0.96 million, as compared to operating profit of $0.22 million for the year ended 31 December 2016. Net basic and diluted loss per share decreased to $0.02 for the year ended 31 December 2017 as compared to net basic and diluted earnings per share $0.01 for the year ended 31 December 2016.

As at 31 December 2017 the Company had liquid cash of $7.79 million as compared to $8.14 million as at 31 December 2016 and trade receivables of $1.75 million compared to $2.92 million for the year ended 31 December 2016. $0.58 million of the year end trade receivables balance has been collected since the year end.

Outlook

SimiGon is well positioned in the simulation and training market for developing and delivering high tech solutions for the industry and has a business partners and customer foundation to propel the Company to its next stage of growth. As a provider of advanced training and simulation technologies and solutions, SimiGon is able to scale rapidly to support new growth as it continues to execute its business strategy.

SimiGon’s exposure to new markets is progressing, bolstered by unrelenting marketing efforts and continued growth in the military training market. Increasing its SaaS based contracts, resulting in recurring revenues and better revenue visibility, together with its consistent investment in R&D, the Company expects to recover from the current period’s results and gain positive momentum.

SimiGon has positive outlook for future prospects, underpinned by more than $20 million of contracted revenue over the next ten years FY2018 (including the contract signed with a particular customer in the civilian training market). SimiGon’s technology developments, together with its revenue streams, are the basis for the Board’s belief in the Company’s a strong foundation for profitability and revenue growth for many years to come.


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SimiGon Ltd

("SimiGon" or "the Company")

Appointment to the Board

SimiGon Ltd (LSE: SIM), a global leader in modeling, simulation and training solutions, is pleased to announce the appointment, subject to shareholder approval at the next general meeting of the Company, of Omer Eyal as a non-executive director of the Company.

Mr. Eyal brings nearly 20 years of business advisory and entrepreneurial experience to the board. Mr. Eyal began his career as a corporate lawyer at global law firm Steptoe & Johnston LLP. He then went on to join UMA Solar LLC, a leading thermal and solar power distributor, as the company’s COO and Legal Affairs Manager for 9 years. Following his exit from UMA Solar, Mr Eyal went on to become founder and CEO of T...

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5 March 2018

SimiGon Ltd

("SimiGon" or "the Company")

Transaction in Own Shares and Total Voting Rights

SimiGon Ltd (LSE: SIM), a global leader in modeling, simulation and training solutions, announces that, pursuant to the share buyback programme (the "Programme") announced on 1 December 2017, the Company purchased 225,000 ordinary shares of 0.01 NIS each in the capital of the Company ("Ordinary Shares") at the price per Ordinary Share of 15.218 pence ("Buyback Shares") through finnCap Ltd (acting as the Company's broker) on 2 March 2018.

The Buyback Shares, along with any other Ordinary Shares purchased by the Company pursuant to the Programme, will be held in treasury.

Following the purchase of the Buyback Shares, the total number of...

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SimiGon Ltd

("SimiGon" or "the Company")

SimiGon receives follow-on FAA contract for UAS simulation software

Contract to provide additional software licenses and services for FAA UAS R&D

SimiGon, (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that it has received a prime contract (the “Agreement”) with the US Federal Aviation Administration (FAA) to deliver the Company’s SIMbox simulation software, SIMbox simulation development tools, and engineering services for the FAA’s Advanced Unmanned Aircraft System Research Simulator (“AURS”).

This is a follow-on order from the original contract announced in September 2017 and is worth approximately $120,00...

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7 February 2018

SimiGon Ltd

("SimiGon" or "the Company")

SimiGon awarded additional USAF support contract

SimiGon to provide additional Contractor Logistics Support (CLS) for USAF simulators

SimiGon, (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that it has been awarded a 28 month contract from the United States Air Force (USAF) to provide additional Contractor Logistics Support (CLS) for SIMbox-based T-6A Level 5 FAA Compliant Flight Training Devices (FTD) (the “Contract”).

Under the Contract’s period of performance of 28 months, SimiGon will provide warranty support for the additional six simulators delivered as part of the task order with Booz Allen in 2016, a...

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SimiGon Ltd

("SimiGon" or "the Company")

Pre-close trading update

SimiGon Limited (“SimiGon” or “the Company”), a global leader in providing simulation training solutions, announces an update on trading for the year ended 31 December 2017 (the “Period”) ahead of announcing its final results for the Period in April 2018.

The Company expects, subject to customary year end and audit adjustments, to report revenue of approximately $4.3 million and an adjusted net loss of approximately $1.1 million for the Period. As set out in the Company’s interim results, procedural delays in concluding the signatory processes over the significant contract with the Israeli Air Force were resolved later in the ...

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SimiGon Ltd

("SimiGon" or "the Company")

Directorate Change

SimiGon, a global leader in modeling, simulation and training solutions, announces that Eitan Cohen, non-executive director of the Company, has resigned from the Company with immediate effect due to a change in circumstances regarding his employment in another company resulting in him no longer being permitted to hold his position as a non-executive director of SimiGon.

Ami Vizer, Chief Executive Officer of SimiGon, said: “We would like to thank Eitan for his contribution to the Company and wish him all the best for the future.”

To view full AIM announcement

SimiGon Ltd
("SimiGon" or "the Company")

Share buyback programme

SimiGon Ltd (LSE: SIM), a global leader in modeling, simulation and training solutions, announces that it has today put in place an irrevocable, non-discretionary programme for the repurchase of up to USD$106,000 (approximately £79,000) of its ordinary shares (the “Programme”).

The Programme will be independently managed by finnCap Ltd, the Company’s nominated adviser and broker, which will make trading decisions independently and without the influence of the Company. Any ordinary shares repurchased on behalf of the Company will be held in treasury and will be notified to a Regulatory Information Service in accordance with the AIM Rules for Companies.

The...

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