"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....
....The Company estimates the De-Icing market to include more than 100,000 trainees per year in the civilian market. SimiGon's technology and business model is well suited for rapid product rollout to meet expected market demand and the Company is looking forward to successfully leveraging its aircraft de-icing training product for substantial business growth.
SimiGon President and CEO, Ami Vizer, said: "This Contract award is significant for SimiGon as it further demonstrates the Company's ability to identify new markets and their requirements for a cost effective personal training systems and tailor its training products to meet new demands within a short timeframe. This SIMbox-based training product is the ongoing realization of the Company's strategic plan to utilize the technology in multiple domains. We are excited to receive the VR Aircraft De-icing Simulator award to support USAF technician training and expect to further penetrate the De-Icing market and deliver high quality training products to both the military and civilian aviation in the future"."
At $560,000 over 28 months it's reasonably if not particularly material, but the importance lies with:
- the USAF evidently retain confidence in SIM in awarding further contracts
- this win is for support services, which provide annual recurring income to lessen SIM's former reliance on lumpy contract wins
- in particular there's a strong hint of more to come:
"We expect this Contract to generate further CLS opportunities with the USAF and other Government customers in the future."
Encouraging to see today's RNS re the beginning of the buyback programme. Even only just over $100,000 of buybacks would probably have a big effect on the share price since liquidity is usually pretty tight.
There's a good core business here, but there's huge upside potential given SIM's notable influence in one of the leading geographies of technology in the world. If SIM can grab a slice of what's available, for example in the virtual reality training arena which it's targeting then the sky is the limit:
"Enterprise Virtual Reality Training Services to Generate US$6.3 billion in 2022
PRESS RELEASE PR Newswire
Nov. 21, 2017, 09:00 AM
OYSTER BAY, N.Y., Nov. 21, 2017 /PRNewswire/ -- Virtual Reality Systems are increasingly being tapped by enterprises due to their ability to provide immersive training environments, accurately simulate dangerous situations, and avoid costly travel and equipment-related expenses. In many cases, consumer-centric Virtual Reality (VR) headsets, controllers, and tracking systems can be used with few modifications. ABI Research, a leader in emerging technology intelligence, forecasts that the enterprise VR training market will generate US$216 million in 2018 and grow to US$6.3 billion in 2022.
Industries with high-risk working environments such as energy, industrial and manufacturing or construction are the early adopters of enterprise VR training applications. Technician trainings in industries such as the energy sector can be perilous, mainly due to the nature of the job where technicians work on offshore rigs, or in the utility sector where technicians work with power distribution systems. "In heavy industries, VR training prevents risks associated with training hazards such as safety of trainees in the dangerous work place or accidental damage of equipment. It can save time and money for the companies by providing realistic hands on experience to trainees without any work downtime," says Khin Sandi Lynn, industry analyst at ABI Research.
Aviation and Maritime are other, more well-known, areas that also use virtual reality training programs for simulated training. Virtual reality can also provide immersive experiences which has an important role in keeping trainees, across all industries, engaged in their training. Companies which deploy VR based training programs have experienced a time savings up to 80%. The effectiveness of VR based training is recognized by retail and marketing businesses, too. "In fact, one of the world's largest retailers, Walmart, has deployed VR technology to train its staff. Walmart is planning to deploy the technology in its 200 training centers by the end of 2017," adds Lynn.
Although VR training applications are still at the early stage of deployments, they have strong potential in the entire enterprise training space; tourism, sales and marketing, and athlete training are just some of the segments where VR training applications will expand.
"This contract, in the maintenance training domain, is a new, lucrative vertical for SimiGon and will provide us with the experience and credentials to leverage for similar new business opportunities in other regions and other sectors."
"SimiGon President and CEO, Ami Vizer, said: "The selection of SimiGon technology as an R&D platform by the FAA is extremely significant and points to our evolution in the training industry, from military aviation to civilian markets and civilian UAS. This underlines the strength of the SIMbox ecosystem that we have developed and its capability to support so many domains. We are excited to work directly with the FAA to support advanced UAS R&D for the US Government. This contract win in the UAS arena is significant as the FAA completed extensive due diligence in researching SIMbox as the baseline software for its advanced UAS Research Simulator. We expect this Agreement to generate further opportunities with the FAA and other Government and Civilian customers in the future."
I've looked into the past, posts about move to SaaS etc.
Still hasn't budged much for a long while.
Granted change may not have hit the sales figures yet but I still don't see what's so very special outside it's under valued to a degree. It might be undervalued for good reason if it's all talk and running out of road.
The last update might be telling us something as well as Finncap being unable to add colour (they are paid by SIM) after they were touting 45p for a long while.
Someone just bought a big stake ,i wonder why ?
Also seems to me they are keeping a low profile for a reason add that to share buy backs announced recently and it makes one think that maybe they want to get shares cheap before some mega announcement.
Or am I just dreaming
Their website is appalling - particularly given what they do and how it should be something of a showcase for their capability. I have tackled the CEO on this very directly. Given all sorts of assurances it would be addressed. Nothing happened - so far. Maybe in the future. Or it could just be the case that they are generation behind and cannot catch up. Simulation is now so refined and realistic - but the investment to get to this stage is very, very significant. I am not at all sure they have the wherewithal to compete at the top level both in terms of people and technology. As for process - this is a one man company and the process of managing delivery to set expectations does not look at all convincing.
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