TIDMSIM
RNS Number : 3198X
SimiGon Limited
29 April 2019
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 2018 (the "Period").
Financial Highlights
-- Revenues increased by 16% to $5.03 million (2017: $4.34 million)
-- Gross margin increases to 81% (2017: 78%)
-- Operating loss decreased by 21% to $0.76 million (2017: $0.96 million)
-- Adjusted operating loss (excluding doubtful debt provision)
decreased by 68% to $0.31 million (2017: $0.96 million)
-- Net loss increased by 6% to $1.01 million (2017: $0.95 million)
-- Adjusted net loss (excluding doubtful debt provision)
decrease by 41% to $0.56 million (2017: $0.95 million)
-- Basic and diluted loss per share of $0.02 (2017: loss per share $0.02)
-- Cash, cash equivalent, short term investment and deposits of
$6.00 million as at 31 December 2018 (2017: $7.79 million)
-- Trade receivables increased by 47% to $2.57 million (2017: $1.75 million)
Operational Highlights
-- Simigon has continued to illustrate its ability to capture
new business and significantly expand product capabilities in core
defence-related market:
o Awarded additional maintenance and support services contract
for the sixteen T-6A Level 5 Flight Training Devices ("FTDs") with
the United States Air Force ("USAF");
o Multiple contracts to provide USAF with Virtual Reality ("VR")
Aircraft Technician De-icing Simulation Based Training;
o Secured additional work scope for Lockheed Martin's UK
Military Flight Training System ("UKMFTS");
o Won follow-on contract with the Federal Aviation
Administration in support of civilian Unmanned Aircraft
R&D.
-- Continued to support major military flight training programmes including:
o The USAF Air Education and Training Command Undergraduate
Remotely Piloted Aircraft Training ("URT");
o Completion of major development and delivery milestones in
support of Lockheed Martin's UKMFTS program;
o Provide software and services as part of long-term
relationship with a strategic European customer.
-- Completed multiple delivery milestones for the $2 million
Israeli Air Force ("IAF") F-16 Maintenance Trainer Program (IAF F16
Maintenance Trainer) contract announced in June 2016.
-- Released SIMbox version 5.7 in August 2018, providing many
new platform capabilities including expanded Virtual Reality (VR)
support and significant "under-the-hood" performance upgrades.
-- Awarded $1.1 million dollar contract with the IAF for T-6A aircrew training devices.
-- Expanded its long-term relationship with an existing European
customer (the "Customer") and has signed a contract valued at $0.92
million for the use of SIMbox in the additional programs across the
Customer's organization.
Post Period Events
-- Secured additional $0.85 million contracts in aggregate with
key European to provide licenses, maintenance and support services
for the Customer's simulation training centers.
-- Signed a Blanket Purchase Agreement with the U.S. Department
of Defense Enterprise Software Initiative to establish agreed
pricing and processes for government customers to purchase the
Company's products and services.
-- Secure additional year of software and hardware warranties
and support services for the United States Air Force T-6A Level 5
FAA Compliant Flight Training Device, valued up to $1.41 million
over the next twelve month period.
Mr. Ami Vizer, Chief Executive Officer of SimiGon, stated: "We
are pleased to report higher revenues for 2018 as compared to the
prior year, together with an improved gross margin and a reduction
at the operating loss level. Our true success is the strong
foundation we created for future growth and return to
profitability.
The Company has been executing its strategy to deliver program
milestones of long-term strategic contracts and continue to develop
tactical positioning in the market as a leading technology
provider. We have entered 2019 with more clients, more partners,
stronger technology and greater utilization of our SIMbox
technology across more domains than any other year in our history.
SimiGon's ability to identify new markets and their need for cost
effective training is exemplified throughout the Period in several
programs, such as the multiple SIMbox-based Virtual Reality
Aircraft Deicing Simulator ("S-VADS") provided to the USAF.
Though 2018 was one of our strongest product delivery years, the
on-going transition to a SaaS model impacted our financial
performance as license revenue is now spread over 5-12 years. As
mentioned on the Company's previous trading update, the impact of
this migration to a SaaS model can be demonstrated by the fact that
license revenue is reduced by 85% which in turn impact short term
yet, I expect, will improve the long-term financial performance of
the Company.
I am very proud of our team and our ability to adapt to changing
market trends. Our growing footprint in the training and simulation
industry is propelled by leading, game-changing technologies,
diverse global partners, and the need for advanced training systems
and positions the Company well to deliver improved financial
performance in 2019 and beyond".
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
SimiGon Ltd
Ami Vizer, Chief Executive Officer +1 (407) 951 5548
Efi Manea, Chief Financial Officer
finnCap (NOMAD & Broker) +44 (0) 207 220 0500
Scott Mathieson / Matthew Radley
Overview
During the Period, the Company achieved successful delivery
milestones of its strategic contracts. This includes milestones on
the IAF F-16 Maintenance Trainer program, logistics support
provided to the USAF under their T-6A program and additional work
scope for the UK Military Flight Training System program.
Successful deliveries and advanced proven technology has led
SimiGon to be contracted with strategic programs throughout the
Period which has solidified SIMbox as the major training technology
platform. This includes the contract signed with the IAF to provide
them with T-6A training devices utilizing advanced VR capabilities
to support advanced training needs, and the contract award from its
key European customer for SIMbox Commercial off-the-shelf training
and simulation development platform.
In addition, SimiGon's ability to identify new markets and their
requirements for cost effective personal training systems was
further demonstrated during the Period when the Company was
contracted to deliver a VR Aircraft De-icing Simulators to the
USAF.
Over the past 24 months, the Company's strategic focus has been
on three main areas:
Sustain the baseline - Continue to successfully deliver
Distributed Learning Solutions to our core strategic partners
worldwide. SimiGon, directly and through its partners, now has
training sites in North America, Europe, Middle East and in the
Asia Pacific markets.
Expand market reach - Expand the utilization of our SIMbox
technology to multiple domains. This was successfully achieved by
targeting several high opportunity markets such as maintenance
training, commercial equipment operators training and research labs
that utilize SIMbox as part of their research.
Strengthen our technology capabilities - Improve the
technological capabilities of the SIMbox technology in order to
enable the growth of the Company as detailed above. Beyond the
expansion of our graphics engine, simulation and learning
management system, we have added and delivered Virtual Reality
solutions to multiple clients around the globe.
During the Period, revenue was $5.03 million (2017: $4.34
million) and loss before tax expenses of $0.78 million (2017: loss
before income tax of $0.96 million). The key contributor to the
reported operating loss is the recording of a doubtful debt
provision in a total of $0.45 million related to a delay in payment
from a particular customer in the civilian training market, as
previously announced. Though discussions continue with that a
customer and legal action has been initiated, the Company has now
recorded a full (as opposed to partial) doubtful debt provision for
the client's entire outstanding debt. Due to the removal of
expected future revenues from this customer, our forward backlog
order book has been revised from the previously announced $20
million to $14 million, which we expect to recognize over the next
ten years.
The Company continues to maintain a strong balance sheet with
liquid cash balances of $6 million as at 31 December 2018.
The Company's R&D has made major advances in simulation
software development tools, Image Generation ("IG") capabilities,
user performance and data analytics capabilities. These SIMbox
technology improvements serve to increase opportunities and market
penetration across military and civilian training markets. The team
has made major strides adapting the platform to new domains and
better leverage of the Company's technology beyond the core defence
market into commercial verticals and civilian / consumer
applications. The Company is well positioned to take advantage of
the fundamental shift in training through immersive experiences,
including Virtual Reality, Augmented Reality and Mixed Reality.
SimiGon's technology is well suited to support the improved
realism and depth perception expected from high fidelity Virtual
Reality solutions as well as being integrated with our Learning
Management System and virtual instructor to provide immediate
training and learning value. SimiGon integrated VR capability
delivers time and cost savings with a level of immersion formerly
available only through far more expensive VR headsets and dome
projection systems.
SimiGon's civilian training market opportunities range from
maintenance, safety, energy and other industrial operations skills.
The Company's efforts to grow vertical Government and Civilian
training are pressing forward. The Company recognizes the growth
potential in VR-leveraged, as well AR training solutions and is
aggressively developing and marketing relevant solutions to support
this fundamental shift in the training world.
The enterprise VR training market is forecasted to grow at CAGR
140% and expected to generate $216 million in 2018 and grow to $6.3
billion in 2022.
SimiGon's market position will improve for multiple reasons.
Foremost, it serves virtually any domain. No less important,
potential customers are seeking solutions supporting with user data
tracking and analytics, high fidelity graphics, scalability and
extensibility to support synchronous and asynchronous training. The
Company already has these capabilities and is delivering advanced
training solutions to the satisfaction of customers and partners.
Third, SimiGon has a high customer retention rate, as clients turn
to the Company to make additional deliveries in existing programs
and support new programs.
The Company invests considerably to advance its technologies and
improve user experience. The customer base, combined with the new
technologies consistently being incorporated into our product
releases, will meet and exceed customer requirements to improve our
market share.
Operational Review
SimiGon's core technology, SIMbox, and support services were
developed for large simulation training programmes for the
Government and Commercial sectors. The Company is at the forefront
of designing, developing, implementing and supporting advanced
simulation and training solutions to accelerate learning reduce
safety risks and save training and program development costs for
its clients. By leveraging its robust and agile SIMbox ecosystem,
SimiGon and its partners can deliver simulation based training
content across unlimited domains and across the hardware spectrum,
from tablets and laptops/PCs to high fidelity training devices.
SimiGon's strategic, simulation-based training solutions offer
flexible licensing models with traditional software licensing or
SaaS. SimiGon's technologies and capabilities provide significant
added value to multiple sectors.
Markets
The Company target markets as follows:
Aerospace and defence related industry
The Company's historical core market is the aerospace and
defence arena, particularly military aviation, where the Company
continues to cement its position as a preferred technology supplier
for the world's largest military training programmes. The Company's
track record of delivering on time and within budget has led to
winning new military-related contracts around the world, as well as
serving to further entrench the Company with existing customers
into new programmes.
Civilian and Commercial vertical markets
The global smart education and learning market size is expected
to reach $423.2 billion by 2025 at a 15.2% CAGR, offering extensive
expansion opportunities for SimiGon.
Millennials and Generation Z users learning experience is
transforming the training industry as students are exposed to
digital devices from a young age. Adaptive learning,
simulation-based learning, blended learning, and collaborative
learning, all part of SimiGon products, have subsequently evolved
to offer users enhanced learning methodologies and experiences.
The simulation-based learning segment is anticipated to grow the
fastest, enabling professional organizations and educational
institutions to virtually experience real world environments for
trainees to practice, navigate, explore, and obtain more
information through a virtual medium before they start working on
real-life tasks.
Growing awareness among people and rising popularity of smart
education are encouraging solution providers to invest in research
and development for creating more reliable, better, and
cost-effective solutions.
The Company is very excited by increased market opportunities
occurring in the civilian and mass consumer training segments being
supported with new technologies such as VR and AR.
As an Open System Architecture ("OSA") software framework,
SimiGon's ability to integrate with new technologies makes it
viable long-term training simulation software fully capable of
leveraging the immersive training needs of the VR civilian markets.
SimiGon software offers an advanced solution to organizations
seeking to teach visual and interactive problem solving in far
ranging markets such as civilian aviation, technician training,
language training, customer service training and corporate
leadership.
SimiGon's technology, experience and personnel, place it in a
unique position to take advantage of the cultural shifts
democratizing learning and training to reach the wider consumer
market.
The Company's significant capabilities, proven in the defence
sector, are being leveraged to pursue new civilian training
contracts. Two examples of potential applications are aircraft
maintenance training and aircraft deicing technician training.
In 2018, SimiGon has successfully made entries into the civilian
Unmanned Aircraft Systems ("UAS") segment with a contract signed
with the US Federal Aviation Administration ("FAA") announced in
Jan 2018, to deliver SIMbox simulation development tools and
training in support of the FAA's Advanced UAS Research Simulator
("AURS"). This contract demonstrated how SIMbox is an effective
R&D toolset for design and development as well as an advanced
training system platform.
The Company continues to further develop its disruptive,
baseline, commercial off-the-shelf ("COTS") product with additional
top layer application content and capabilities to reach more end
users and vertical markets. Targeted verticals such as commercial
aviation maintenance training, security training, language training
and vocational training have common requirements to the
defence-related industries the Company continues to target.
Specifically, they are highly regulated, require complex and
specialized skill training and have zero tolerance for error.
SimiGon is seeking to increase market share and broaden the end
user applications for its base line SIMbox software platform in new
domains.
For marketing investments, the Company has increased digital and
print advertising, social media efforts and added presence at
industry exhibitions, with booths at four industry symposiums,
including the 2018 Singapore Airshow, ITEC in Europe, IITSEC and
TSIS in the US as well as participation in smaller industry demos
for select customers. Showcasing the Group's newest developments to
existing and potential partners and customers serve to increase the
overall potential business net.
Business Model
SimiGon's strategy, in line with market requirements, is to
focus on long-term, high value, stable 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 Group is focused on growing organically through its
existing customer base, offering continuous product developments
and services; leveraging its experience and IP developed from
existing contracts as a Prime Contractor and Subcontractor to win
new business and capture sales in established segments; and
expanding its core technology's applicability for new market
domains, directly and indirectly.
SimiGon's highly scalable, COTS technology training management
system makes it an ideal solution to address new training domains
with little customization required. New projects and markets
continue to utilize the product infrastructure and developer tools
to create the new application content; once developed, they are
leveraged to target the wider market.
R&D
The Company's R&D investments are working to expand the
Group's offering to ensure it stays a leading provider of advanced
technologies. This allows SimiGon to identify prospects while
maintaining a programme of solutions, upgrades and enhancements to
expand business with existing clients and winning new
customers.
SimiGon realized numerous R&D milestones in the financial
year. The Group's Image Generator ("IG") has undergone a complete
technology refresh and now supports higher fidelity training
devices, providing industry leading user experiences, providing
high resolution graphics and accurate environmental conditions.
The Company has also remained astride with its VR device
support, as it has for more than twenty years. VR and AR remain a
Company focus and further R&D investment on these efforts will
positively impact the Company's growth potential and are central to
remaining a viable technology option.
Significant contracts
New contracts
In February 2018 SimiGon was awarded with additional onsite
support services for the sixteen T-6A Level 5 FTDs with the USAF.
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, and
further onsite hardware and software support for all of the
SIMbox-based simulators, including the ten simulators delivered to
the USAF between 2011-2012 and then upgraded on 2016.
The Contract represents another milestone for SimiGon as it
establishes a full CLS capability for the T-6A training devices.
The simulators are used to provide thousands of training events
annually for the USAF's URT program and it further demonstrates the
market's recognition that SimiGon is capable of delivering support
for the complete ecosystem, including software, hardware and onsite
support.
In February 2018 the Company signed a contract with the US FAA
to deliver the Company's SIMbox simulation software, SIMbox
simulation development tools, and engineering services for the
FAA's AURS. This was a follow-on order from the original contract
announced in September 2017 and is worth approximately $120,000 and
has been factored into management's expectations for fiscal year
2018. The AURS supports human factors research and safety research
within the FAA's Aerospace Human Factors Research Division. SIMbox
delivers the user interface for the operators in an aircraft
simulation environment as well as a central repository for all
components with the embedded configuration management
capability.
In May 2018 SimiGon was contracted to provide VR simulation
based training for USAF De-icing technicians. 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 de-icing simulation product, USAF technicians will
receive simulation based training that includes scoring,
Playback/After Action Review, feedback reports, as well as a
multi-player training capability.
Aircraft de-icing is a high skills task requiring annual
training of military and commercial personnel working in cold
weather aviation. Ice adds significant weight to aircraft and
having "clean aircraft" is critical to safe travel. SimiGon
understands the importance for operators to undergo adequate
training to ensure proper operations, as mistakes can result in
significant aircraft damage and flight cancellations. The Directors
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.
In September 2018, SimiGon was awarded with $1.1 million
contract from the IAF to provide SIMbox-based T-6A Simulation Based
Trainers to the IAF Flight Academy (the "Contract"). The Contract
for the new trainers is a progression of SIMbox Ground Based
Training Systems ("GBTS") for other platforms in the IAF inventory,
including the M-346 Advanced Jet Trainer ("AJT"). This Contract
solidifies SIMbox as the IAF's major training technology platform
for its aircrew and maintainer academies. The Contract includes the
procurement of SIMbox-based T-6A training devices in a fully
immersive, VR environment. Up to 4 systems will be delivered in the
first phase, enabling students to train through personal stations
on most of the aspects of their syllabus. The stations will include
high resolution Common Database terrain and VR headsets to support
advanced training of Aerobatic, Formation, Navigation and Circuit
procedures, together with standard procedural and emergencies
training. In the second phase, a Virtual Instructor and a
self-paced syllabus using high fidelity 3D simulation will be
delivered, providing accelerated, cost-effective training to the
IAF cadets.
In December 2018, SimiGon further expanded its long-term
relationship with a major existing European customer (the
"Customer"). The contract award is for SimiGon to provide its
SIMbox Commercial Off the Shelf training and simulation development
platform and delivery environment for its new research &
development lab at the Customer's facility (the "Contract"). The
Customer will use SIMbox technology as the technology baseline for
its ATC. Under the Contract, valued at $0.92 million, SimiGon has
successfully increased the use of SIMbox in the additional programs
across the Customer's organization. The expected revenue from this
Contract was already factored into management's expectations for
the years ended 31 December 2018 and 2019. SIMbox-based training
solutions will be used to design, develop and implement advanced
training for flight crew and maintenance staff, for basic, advanced
and recurrent training. The SIMbox Training Management System will
allow the ATC to deploy the content and monitor user performance.
The embedded virtual instructor capability will ensure dynamic,
highly interactive, personalized, cost-effective training solutions
that reduce the cost of real flights, flight instructor hours and
help prevent aviation mishaps.
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 the 2018 financial year and
beyond.
SimiGon continued its successful delivery milestones for a $2
million contract announced in June 2016 to provide F-16 maintenance
simulation based training systems to the IAF's technician school in
Haifa, Israel. 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 continues its successful support for UKMFTS as a
technology and services provider to Lockheed Martin. The Company
continues to deliver under this long term contract, now in its
ninth year of support, exceeding partner and end user expectations
of SimiGon's technologies and performance.
Ongoing USAF contracts for the continued maintenance and support
for SIMbox-based T-6A FTD demonstrates the long term relationship
with this strategic customer.
Check-6 Inc., one of the leading providers of training solutions
to the energy and mining industries, is another example of
SimiGon's ability to help companies achieve new growth. Throughout
this contract, SimiGon has successfully executed on its agreed
deliverables. This relationship continues to yield long term
business prospects. The Company is optimistic that additional
agreements will be executed to extend this relationship.
The Company continues to support a major existing European
customer the Company has been supplying with software and services
since 2009. The customer is operating SimiGon training solutions in
four different training centers daily and has very positive
customer reviews. SimiGon is certain that this relationship will
continue and lead to additional future orders.
Share buy-back programme
On 1 December 2017 the Company put in place an irrevocable,
non-discretionary programme for the repurchase of up to $106,000
(approximately GBP79,000) 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 $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, a total of 535,571 shares have been bought back.
Financial Performance
Revenue for the year ended 31 December 2018 was $5.03 million,
compared to $4.34 million in 2017. 29% of SimiGon's revenues came
from North America (2017: 40%), 69% from Europe, Middle East, South
America and Australia (2017: 42%) and 2% from the Far East (2017:
18%).
Gross profit for the year ended 31 December 2018 was $4.06
million, as compared to $3.36 million for the year ended 31
December 2017. Accordingly, gross margins increase to 81% for the
year ended 31 December 2018 as compared to 78% for the year ended
31 December 2017.
Total operating expenses for the year ended 31 December 2018
increased by 12% to $4.82 million as compared to $4.32 million for
the year ended 31 December 2017, mainly as a result of increase in
R&D expenses and doubtful debt provision in a total amount of
$0.45 million recorded in year 2018. Research and development
expenses for year ended 31 December 2018 increased by 12% to $2.34
million as compared to $2.09 million for the year ended 31 December
2017 mainly due to salary expenses. Marketing expenses for the year
ended 31 December 2018 decreased by 13% to $1.02 million as
compared to $1.17 million for the year ended 31 December 2017
mainly due to sales commissions and salary expenses. General and
administration expenses for the year ended 31 December 2018
increased by 38% to $1.46 million as compared to $1.06 million the
year ended 31 December 2017 mainly due to provision for doubtful
debts recorded in year 2018 of $0.45 million.
Operating loss for the year ended 31 December 2018 was $0.76
million, as compared to $0.96 million for the year ended 31
December 2017. Operating loss excluding doubtful debt provision
decreased by 68% to $0.31 million as compared to year 2017 ($0.96
million).
The Company has recorded non cash tax expense of $0.24 million
for the year ended 31 December 2018 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, net loss for the fiscal
year of $1.01 million (2017: net loss of $0.95 million). The net
loss excluding doubtful debt provision, decrease by 41% to $0.56
million as compared to year 2017 ($0.95 million).
Net basic and diluted loss per share was $0.02 for the year
ended 31 December 2018 as compared to net basic and diluted
earnings per share of $0.02 for the year ended 31 December
2017.
As at 31 December 2018 the Company had liquid cash of $6.00
million as compared to $7.79 million as at 31 December 2017. Trade
receivables net increased by 47% to $2.57 million compared to $1.75
million for the year ended 31 December 2017, mainly as a result of
work completed as part of the IAF F16 Maintenance Trainer long-term
program. A total of $0.64 million of the year end trade receivables
balance has been collected since the year end.
Outlook
SimiGon's impressive past and ongoing performance of developing
and delivering cost effective technologies and solutions for the
simulation and training market remains solid and due to its latest
developments is in fact trending higher. Combined with strong
economic growth and the focus on ensuring sufficiently trained
maintainers to support military and civilian shortages and
essential investments in training applications for millennials and
Generation Z, the Company looks forward to meeting the challenges
and capturing the growth foreseen by shareholders. Among the
Company's advantages is its ability to scale rapidly to support new
contracts and deliver in its vision and business strategy.
SimiGon's push to reach new verticals and customers is
steadfast.
By increasing SaaS-based contracts for more recurring revenue
and better long term visibility, together with intensive R&D
investment and business development efforts on multiple market
opportunities, the Company expects to quickly resume cash flow
positive activities and profitability.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31,
---------------------------
2018 2017
------------- ------------
U.S. dollars in thousands
---------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 3,143 4,868
Short-term bank deposit 1,014 1,010
Short-term investments 1,845 1,912
Short-term restricted cash 278 337
Trade receivables, net 2,571 1,748
Other accounts receivable and prepaid
expenses 93 149
Total current assets 8,944 10,024
------------- ------------
NON-CURRENT ASSETS:
Restricted cash 559 337
Long-term prepaid expenses 32 34
Deferred tax - 226
Property, plant and equipment 66 94
Goodwill and intangible asset 1,068 1,068
Total non-current assets 1,725 1,759
------------- ------------
Total assets 10,669 11,783
============= ============
December 31,
---------------------------
2018 2017
------------- ------------
U.S. dollars in thousands
---------------------------
EQUITY AND LIABILITIES
CURRENT LIABILITIES:
Trade payables 159 133
Deferred revenues 327 401
Other accounts payable and accrued expenses 691 675
------------- ------------
Total current liabilities 1,177 1,209
------------- ------------
NON-CURRENT LIABILITIES:
Employee benefit liabilities 287 289
Other non-current liabilities 712 704
Total non-current liabilities 999 993
------------- ------------
Total liabilities 2,176 2,202
------------- ------------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE COMPANY:
Share capital 125 125
Additional paid-in capital 16,647 16,639
Treasury shares (105) -
Accumulated deficit (8,174) (7,177)
------------- ------------
Total equity attributable to equity
holders of the Company 8,493 9,587
------------- ------------
Non-controlling interests - (6)
Total equity 8,493 9,581
------------- ------------
Total liabilities and equity 10,669 11,783
============= ============
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year ended
December 31,
--------------------------------
2018 2017 2016
------------ -------- --------
U.S. dollars in thousands
(except share and per share
amounts)
--------------------------------
Revenues 5,029 4,335 6,018
Cost of revenues 973 975 1,882
------------ -------- --------
Gross profit 4,056 3,360 4,136
------------ -------- --------
Operating expenses:
Research and development 2,335 2,092 1,714
Selling and marketing 1,019 1,170 1,092
General and administrative 1,462 1,056 1,107
------------ -------- --------
Total operating expenses 4,816 4,318 3,913
------------ -------- --------
Operating profit (loss) (760) (958) 223
Finance income 134 126 172
Finance expenses 157 125 103
------------ -------- --------
Income (loss) before income taxes (783) (957) 292
Income tax benefit (expense) (224) 3 69
------------ -------- --------
Net income (loss) (1,007) (954) 361
============ ======== ========
Year ended
December 31,
--------------------------------
2018 2017 2016
----------- --------- --------
U.S. dollars in thousands
(except share and per share
amounts)
--------------------------------
Net income (loss) (1,007) (954) 361
----------- --------- --------
Other comprehensive income not
to be reclassified to profit
or loss in subsequent periods:
Remeasurement gain (loss) from
defined benefit plan 16 (11) (2)
----------- --------- --------
Total comprehensive income (loss) (991) (965) 359
=========== ========= ========
Net income (loss) attributable
to:
Equity holders of the Company (1,013) (952) 365
Non-controlling interests 6 (2) (4)
----------- --------- --------
(1,007) (954) 361
=========== ========= ========
Total comprehensive income (loss)
attributable to:
Equity holders of the Company (997) (963) 363
Non-controlling interests 6 (2) (4)
----------- --------- --------
(991) (965) 359
=========== ========= ========
Net basic and diluted earnings
(loss) per share attributable
to equity holders of the Company
in U.S. dollars (0.02) (0.02) 0.01
=========== ========= ========
Weighted average number of shares
used in computing basic earnings
per share (in thousands) 51,259 51,444 51,097
=========== ========= ========
Weighted average number of shares
used in computing diluted earnings
per share (in thousands) 51,259 51,444 51,319
=========== ========= ========
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the
Company
--------------------------------------------------------------
Additional
Number Share paid-in Treasury Accumulated Non-controlling Total
of shares capital capital shares deficit Total interests equity
---------- ------- ---------- -------- ----------- ------ --------------- ------
U .S. dollars in thousands (except share amounts)
----------------------------------------------------------------------------------------
Balance as of
January
1, 2016 50,993,154 124 16,526 - (6,201) 10,449 - 10,449
Total comprehensive
income - - - - 363 363 (4) 359
---------- ------- ---------- -------- ----------- ------ --------------- ------
Dividend
distribution - - - - (306) (306) - (306)
Share-based
compensation - - 65 - - - - 65
Share issuance 100,000 *) - 38 - - - - 38
Exercise of stock
options 301,035 1 - - - 1 - 1
---------- ------- ---------- -------- ----------- ------ --------------- ------
Balance as of
December
31, 2017 51,394,189 125 16,629 - (6,144) 10,610 (4) 10,606
Total comprehensive
loss - - - - (963) (963) (2) (965)
Dividend
distribution - - - - (70) (70) - (70)
Share-based
compensation - - 10 - - 10 - 10
---------- ------- ---------- -------- ----------- ------ --------------- ------
Balance as of
December
31, 2017 51,394,189 125 16,639 - (7,177) 9,587 (6) 9,581
Total comprehensive
loss - - - - (997) (997) 6 (991)
Purchase of
Treasury
shares (535,571) - - (105) - (105) - (105)
Share-based
compensation - - 8 - - 8 - 8
---------- ------- ---------- -------- ----------- ------ --------------- ------
Balance as of
December
31, 2018 50,858,618 125 16,647 (105) (8,174) 8,493 - 8,493
========== ======= ========== ======== =========== ====== =============== ======
*) Represents an amount lower than $ 1 thousand.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended
December 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
U.S. dollars in thousands
-------------------------------
Cash flows from operating activities:
Net income (loss) (1,007) (954) 361
--------- --------- ---------
Adjustments to reconcile net income(loss)
to net cash provided by (used in) operating
activities:
Adjustments to the profit or loss
items:
Depreciation and amortization 46 55 87
Deferred tax 226 (3) (64)
Finance expenses (income), net 64 (36) (71)
Share-based compensation 8 10 65
Change in employee benefit liabilities,
net 15 57 28
Changes in asset and liability items:
Decrease (increase) in trade receivables (823) 1,171 796
Decrease (increase) in other accounts
receivable and prepaid expenses (including
long-term) 59 (105) 18
Increase (decrease) in trade payables 26 35 (25)
Increase (decrease) in deferred revenues (74) (195) 22
Increase (decrease) in other accounts
payable and accrued expenses - 5 (167)
--------- --------- ---------
(453) 994 689
--------- --------- ---------
Net cash provided by (used in) operating
activities (1,460) 40 1,050
--------- --------- ---------
Year ended
December 31,
-----------------------------
2018 2017 2016
---------- ------ ---------
U.S. dollars in thousands
-----------------------------
Cash flows from investing activities:
Increase in restricted cash (164) (300) -
Increase in short-term bank deposits - - (1,001)
Increase in long-term deposits (2) - (26)
Purchase of property, plant and equipment (16) (34) (66)
Net cash used in investing activities (182) (334) (1,093)
---------- ------ ---------
Cash flows from financing activities:
Proceeds from share issuance - - *) -
Dividend distribution - (70) (306)
Purchase of treasury shares (105) - -
Receipt of refundable grants 22 11 25
Net cash used in financing activities (83) (59) (281)
---------- ------ ---------
Decrease in cash and cash equivalents (1,725) (353) (324)
Cash and cash equivalents at beginning
of year 4,868 5,221 5,545
---------- ------ ---------
Cash and cash equivalents at end of
year 3,143 4,868 5,221
========== ====== =========
(a) Supplemental disclosure of non-cash
financing activities:
Receivable in respect of issuance
of shares -- 1
Issuance of shares in respect of
2014 annual bonus to directors
and employees --38
*) Represents an amount lower than $ 1 thousand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR PGUBCCUPBGCR
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