FLYHT will now be better in weather observations and services
FLYHT Aerospace Solutions Ltd. is pleased to announce it has acquired the assets of Panasonic Weather Solutions, based in Littleton, Colorado, from Panasonic Avionics Corporation. Currently serving more than a dozen airlines in North America, Europe and Southeast Asia, PWS provides Iridium satellite communications systems, aircraft tracking and alerting, the FlightLink™ Iridium Satellite Data Unit, and Tropospheric Airborne Meteorological Data Reporting (TAMDAR™) sensors.
Double the revenue
FLYHT will continue to install the significant sales contract backlog included with this asset transfer according to customer provided schedules. This transaction is expected to almost double (1.74x) FLYHT’s current overall revenue and more than double (2.47x) FLYHT’s current SaaS revenues (adding approximately USD$5.2 million at 52% margin), when calculated on an annualized basis at the end of the Transition Period (assuming the install schedules are completed as currently anticipated). The asset acquisition plan anticipates new revenue of approximately USD$11.7 million contributing 45% gross margin during the Transition Period. It is important to note that during the Transition Period, FLYHT will need to increase the number of worldwide TAMDAR installations to preserve the total planned weather observation related revenues, which at approximately USD$3 million represents 46% of SaaS revenue increases during such period. Also, FLYHT will need to earn additional business and/or reduce expenses related to these new assets and operations for them to add positively to FLYHT’s income.
Chief Executive Officer of FLYHT, Thomas R. Schmutz said, “This is a fantastic opportunity for FLYHT to grow the business. This agreement will gain the Company a large operator and establish a brand-new revenue stream—weather observations and services. We will include this new part of our business in our SaaS, or Software as Service revenue, and we will periodically report on the weather component separately to demonstrate our progress with this new technology and customer base.”