FLYHT Aerospace – Boeing Test Draws Attention Of Avionics Magazine

FLYHT Aerospace has been featured in the August/September edition of Avionics Magazine online as a result of an August 10, 2017 announcement, regarding the company’s collaboration with Boeing.

The article specifically states, “FLYHT Aerospace Solutions is supplying its UpTime™ Cloud automated flight information reporting product and management platform to Boeing as part of its upcoming flight test program on a FedEx 777. FLYHT is participating in the Boeing ecoDemonstrator Program to collect data and produce test reports necessary to demonstrate autonomous distress tracking and the timely recovery of flight data to help drive industry standardization and requirements. The company’s portion of the ecoDemonstrator Program was initiated in April and is expected to be completed in 2018.”

About Avionics Magazine

Avionics is the leading source for global aviation technology intelligence, covering the latest developments with the connected aircraft, NextGen, avionics innovation and global air traffic management modernization. More than a magazine, this is the platform for in-depth analysis on the global aircraft electronics market, used by top avionics executives, engineers, pilots and professionals throughout the value chain.

This site generates 56,000 page views per month, with 21,770 unique visitors. 41% of our visitors come from international sources

To read the article in its entirety, please click here.


FLYHT Aerospace Second Quarter Conference Call Now Available Online

We’re keenly aware that at first blush investors will see a decrease in revenue and an increase in expenses over last quarter and immediately jump to the conclusion that something’s wrong with the company. However, once the time is taken to dig into the numbers and listen to today’s (August 17th) conference call, the quarterly results are a minor bump in the road. The uptrend is fully expected to continue, which has seen seven consecutive record quarters and four profitable quarters.

Plain and simple the second quarter was impacted by the following:

  • The first half of the year is cyclically slower than the second half for FLYHT.
  • Revenue was $3.4 million, which is only 4% lower than the same quarter a year ago. The revenue shortfall relative to last year was in FLYHT’s recognition of AFIRS™ hardware units. According to Tom Schmutz on the conference call earlier today, “We recognized 17 units this quarter compared to 27 a year ago. However, June was a very strong month; where we recognized 60% of the revenue from AFIRS units, but April and May were slow. The recognition rules vary according to use case and situation, so it can get complicated and timing does play a part in when we can recognize both the hardware and the resulting services.”
  • It’s important to note that the other revenue categories were up this quarter.  Schmutz stated, “The Voice and Data services revenue component, which is the Software as a Service component, was up 14% over Q2 2016 and Parts sales, which includes the IP license payments for our shipments to A320 and A330 production and retrofit, was up 31% over Q2 2016.”
  • The second quarter bears the weight of non-cash charges from issuance of stock options. In this regard, Mr. Schmutz stated, “It would be nice to be able to spread these non-cash charges across the year, rather than burden one quarter, but it is not practical from an accounting standpoint to do so. These options are very important to the business because they are the primary method at the board and management’s disposal to attract and motivate the quality people that we need to be successful in this very competitive business. When we take the non-cash charge out of the quarter, we were slightly negative at $330k, which again results from a shortfall of recognizing AFIRS kits in the quarter.”  
  • Also in the second quarter of 2016 FLYHT recorded a sale of Intellectual Property for $3.2 million.
  • With the total revenues for the first half of 2017 things are looking very positive. Schmutz addressed this point on the call by stating, “Overall the first half total revenues are 16% better than this time last year. The AFIRS hardware revenue is within 1% of last year, Voice and Data Service revenue is up 11%, and Parts revenue is up 41%, relative to last year…Historically, our business is cyclical; the first half of the year traditionally lags the second half for overall revenues. We are therefore optimistic for the second half of the year. On the very good news front, June hardware recognition was brisk, and the value and quantity of shipments in June and July have been exceptional. In fact, during July, I believe set a company record for the value of units that we shipped; and we are actually ahead of estimated 2017 budget through July for the value of shipped units. We are therefore optimistic that the AFIRS revenue will catch up to where we planned it to be in the third quarter of this year.”
  • Sales have been progressing well both in the quarter and year to date. Addressing this Mr. Schmutz said, “During the second quarter, we have received sales orders in new contracts or purchase orders for nearly USD $5 million for Parts, AFIRS Hardware and Voice & Data contracts. During the first quarter, we had new orders for a little over USD $5.6 million. This brings us to over USD $10.5 million in new sales orders for the first half of the year, which exceeds our revenue for the same period, so we are looking good from a book to bill ratio at the midpoint in the year.
  • The sales backlog is growing and is stronger than ever. To this point, Mr. Schmutz stated, “The sales Backlog, which I reported earlier this year exceeds $25 million and creates significant optimism for our ability to achieve future revenue goals. Bottom line, we have a very exciting sales funnel and I hope to be bringing new sales news quite soon.”

In regard to operations, Mr. Schmutz provided a broad overview of all the things the company is working on.

  • “Operationally, FLYHT has a wonderful opportunity, having signed agreements for two trials to test Autonomous Distress Tracking and Timely Access to Flight Data features of our product which will satisfy requirements levied by the International Civil Aviation Organization (or ICAO) for new aircraft in service by 2021.  FLYHT recently announced the U.S. patent for our FLYHTStream™ capability which is also registered in China and some other countries. It is awesome to see these patented capabilities that FLYHT has been offering commercially within the industry for several years being recognized as a potential solution for the way aircraft will operate soon and beyond.”
  • “One trial is being conducted by FLYHT and Boeing on a FedEx B777. The second trial is with industry heavyweights and has not been announced yet, but we hope it will be soon. Both trials will use our real-time data streaming capability and will use either satellite constellations from Iridium or Inmarsat or, in the case of Boeing, both. We have modified the AFIRS unit so that is can stream over different technologies; so, we can use the organic Iridium resources inside the AFIRS or we can use alternate communication resources that may exist on the aircraft. The data sets from these trials will validate this fantastic approach to the connected flight deck and will be used to drive industry standards with FLYHT serving as the streaming technology expert in these trials.  The logistics and planning phases for both trials are underway; we expect to have conducted flight tests for one of the trials in this calendar year and early next year for the other trial. It is also wonderful to see FLYHT working directly with these large corporations and not through intermediaries; to me this speaks volumes about the maturation process that FLYHT has undergone the past few years and I am very proud to be able to represent our company to these organizations.”

Listen below to today’s second quarter conference call in its entirety or click here.

Alex Ruus On BNN: “Air Canada Would Be Smart To Add FLYHT Onto Their Fleet”

Almost without exception, Arrow Capital Portfolio Manager Alex Ruus receives a question about FLYHT Aerospace during his many appearances on Canada’s Business News Network (BNN). Yesterday was no different as he detailed a number of positives in response to a caller’s query about the company. Here are some highlights:

  • Great little company.
  • Just recently emerged into profitability.
  • This is the type of leader of tomorrow we like to invest in.
  • It’s a very cheap stock right now, it trades at a market cap of under $50 million.
  • They provide what I call smart black box streaming. It would help deal with issues like MH-370 that disappeared five years ago and still hasn’t been found. That would never have happened if it had the FLYHT equipment on. More importantly it is an economic sale to the airline. They sell their product to the airline, a streaming service and it helps them maximize profitability of their planes.
  • They are on the assembly line of Airbus on the A-320 line and we think they could have some breakthroughs with other OEMs in the next year or two, as well as they could get some very big airline customers.
  • They have about 1,000 units out in the market so far and they get a recurring revenue stream off of each of those units.
  • I think a company like Air Canada would be smart to add FLYHT onto their fleet because we think that would allow them to increase their utilization of assets.

To view the full segment, please click here.


WINGS Magazine Names FLYHT VP Operations In 20 Under 40 List

The collective FLYHT team would like to congratulate Mat Plamondon, FLYHT’s 38 year old Vice President of Operations and Customer Fulfillment for being recognized in WINGS Magazine’s, 20 under 40 list for 2017.

The article refers to Mat as “a ‘high potential’ executive on the rise.” His role at FLYHT has him overseeing international operations. Acknowledging that “he does it with determination and verve, showing a commitment to excellence that is truly infectious.

The article states, “Plamondon brings more than 18 years of experience to his role and works hard to ensure his customers get maximum value from the products FLYHT creates. He joined the FLYHT team because he maintains that real-time data that the Flight Information Reporting System (AFIRS™) offers can increase efficiencies and safety throughout the industry.

About WINGS Magazine
WINGS Magazine is Canada’s only premiere national aviation magazine, providing comprehensive coverage of commercial, corporate, general and military aviation in Canada and around the world.

Wings Magazine is behind many of Canada’s leading aviation initiatives, such as the Careers in Aviation guide and expos, the annual FBO Survey, MRO Directory, Industry Roundtable, CBAA show guide and directory, and more.

To view the article, please click here. Mat is featured on page 27.

Alex Ruus Discusses FLYHT On BNN – “We Think It’s Quite Undervalued Here”

Late yesterday, long-time supporter and shareholder Alex Ruus, Portfolio Manager at Arrow Capital Management, was upbeat in his response to a question on FLYHT Aerospace while appearing on Canada’s Business News Network (BNN).

Mr. Ruus closed the segment by stating, “It’s taken a while to develop the market, but it’s now turned profitable in the last year. We think the stock’s actually quite undervalued here, and if you bought it today I think if you look 12 to 24 months out, you’ll be very, very happy owning this stock.”

To watch the full segment, please click here.

Bob McWhirter Lays Out (Some) Opportunities For FLYHT On BNN

Yesterday on Canada’s Business News Network, Selective Asset Management’s Bob McWhirter took a question from a caller on FLYHT Aerospace.  As a long-time follower and investor in FLYHT he made the following key points:

  •  “They just announced a new contract with a Chinese airline. China really is the key for the company, because China is building out a massive increase in their fleets and actual airports.”
  • “The real key at the moment is the device by FLYHT is added as an option on the Airbus line, which is one of the large airframe makers.”
  • “There is speculation that Boeing would end up doing the same. The question becomes if Boeing were to do that, then it would be quite significant.”
  • “So, they have two pieces of the puzzle at the moment. One is will Boeing end up certifying and offering their clients and customers, the ability to end up like Airbus, having installed as an option initially, as well as can they end up getting further penetration in China.”

To view full segment, go to:

FLYHT’s 2016 Year End Conference Call Now Available Online


This morning, FLYHT CEO Tom Schmutz and CFO Nola Heale hosted the company’s 2016 year end conference call. The key takeaways from the year end numbers are that the company has, in the fourth quarter, registered its third profitable quarter in a row and the year over year revenue growth was very strong at 37%.

Here are some of the highlights from Tom Schmutz on the conference call:

  • “We accomplished nearly all the goals for the year, we signed significant sales contracts and grew our backlog and we retired a significant amount of debt.”
  • “There is significant excitement within the Company resulting from our continually improving revenue performance, our maturing processes within the company, the sales wins we have been announcing and the remaining potential within the sales funnel.”
  • “The resulting $14.3M annual revenue for 2016 was also a record; it was 37% better than 2015 which had been the Company’s previous best year.”
  • “The exciting growth areas for FLYHT remained our OEM contract to forward fit and retrofit Airbus A320 and A330 with Satcom equipment and our direct sales into China.”
  • “FLYHT announced approximately $9M in new contract sales in China in 2016. We continue to spend a great deal of energy in this market and will continue to do so over the coming years.”
  • “We have developed a significant backlog of sales in China and this will be core to our future growth…”
  • “Our STC creation continues to be a market differentiator for FLYHT. This is a real barrier to entry for potential competition and we keep an excellent accounting on our web site for customers to quickly review and understand where we are in the process of achieving installation approvals. Right now, we can install on 95% of the aircraft used for commercial air transport.”
  • “Our FLYHT Plan for 2017 includes growing overall and monthly recurring revenue by at least 25% and remaining EBITDA positive for the year.”
  • “We also want to continue to diversify the customer base, so we target contracts in Southeast Asia, Europe and the Middle East in 2017.”
  • “We will continue our efforts to secure business with a new OEM position. Finally, we will continue to grow public value through strategic business initiatives, including increasing the share price and growing our working capital.”
  • “This year, 2017, has started very strong on the sales front. Please understand I am now discussing sales and not revenues. FLYHT has made several announcements in the first quarter of this year and I want to place them into context relative to last year. Last year, 2016, we had a fantastic year for AFIRS hardware unit sales contracts, booking $10.6M and exceeding our budgeted goals for sales booked. This first quarter, FLYHT has already announced $5.7M in AFIRS hardware bookings, or more than half of last year. Also, we announced sales of $2M through the Parts OEM channel in this first quarter. This total compares very favorably with 2016 where total sales in this channel was $5.4M. Much of the Parts sale will become first quarter revenue for 2017. The AFIRS sales booked in the first quarter will add to our backlog and start adding to our revenues within this year. We continue to pursue an exciting sales funnel, so I am hopeful that FLYHT will be able to release more sales news as we proceed through this year.”

Listen to the conference call in its entirety below or click here.

FLYHT VP Sales David Perez Talks About Success in China and Sales Growth

It has been almost two years since David Perez joined FLYHT as the VP Sales and Marketing, and Grant Howard, President of the Howard Group first spoke with him about the company’s opportunities.

It was time for an update on FLY’s progress on the sales and marketing front. Recently, Mr. Howard conducted a follow up interview and below are the topics that were discussed during the nearly 12 minute conversation:

  • Sales growth and reasons for growth since Mr. Perez joined the company,
  • FLYHT’s success in China and how the airline market is growing there,
  • FLYHT’s diversification into other regions of the world,
  • The company’s efforts in landing a large order from a tier 1 airline,
  • An overview of the overall realizable market for FLYHT’s technology.

To hear the full interview, see below or click here.

Alex Ruus on FLYHT: “This Will Become, Over Time, a Global Standard for the Industry.”


Arrow Capital Management portfolio manager Alex Ruus was very upbeat in response to a question regarding FLYHT Aerospace during yesterday’s appearance on BNN’s Market Call Tonight. FLYHT was selected as a “Top Pick” on an earlier episode of the show.

Here are some key points Mr. Ruus made about FLYHT during the segment.

  • “FLYHT is an ‘Internet of Things’ company for the aircraft industry.”
  • “They provide critical data streaming from planes to the ground.”
  • “I would argue that they are the leaders in that segment. They’ve done a deal with Airbus. I would argue that this will become, over time, a global standard for the industry.”
  • “After three or four years of struggling from a stock perspective. The stock has recently perked up and we think that that is just the start of great things to come.”
  • “Things are progressing there, we think there’ll be good news this year and we think the stock will go significantly higher.”

Please click here to watch the full segment.

Bob McWhirter Talks FLYHT On BNN

Strength In Share Price Comes From Optimism Around Chinese Opportunity

On Friday (January 6) afternoon, long time FLYHT follower and proponent Bob McWhirter, Portfolio Manager at Selective Asset Management fielded a caller’s question while appearing on Canada’s Business News Network (BNN). The caller was enthusiastic with his question, stating, “I’ve been sitting on it for six months and it’s finally starting to pop.”

Mr. McWhirter provided a quick overview of the technology and its functionality. In regards to the recent strength in the stock price, he sights optimism around FLYHT’s opportunity in China and how Chinese airlines are embracing the company’s technology.

To view the clip from BNN, please click here.

Technical Analyst Keith Richards Discusses FLYHT On BNN – Is FLYHT Primed For A Break Out?

Over the holidays (December 30, 2016), Keith Richards, technical analyst and portfolio manager at ValueTrend Wealth Management of Worldsource Securities, discussed FLYHT on Business News Network’s (BNN’s) Market Call Tonight. He fielded a question on FLYHT Aerospace and here’s the key takeaway.

“FLYHT Aerospace was in a downtrend and has most definitely begun quite a nice little base there. So what you’re looking for with this stock is you want to see a breakout past the base. It’s very difficult to gain on these charts, it’s a little hard to see. It looks to me to be in the mid-to high 20’s; if the stock broke out to that area, then you probably have some significant upside ahead of you. Right now it is in the base and that is a healthy development, a base is a good thing.”

To view the clip on BNN click here.

Fortune Magazine Features FLYHT Aerospace

This morning (December 8th), the online version of Fortune Magazine, featured a commentary by FLYHT board member and former Chairman of the U.S. National Transportation Safety Board, Mark Rosenker.

fly_161208pic1In the commentary, Mr. Rosenker declares “The technology is available.” He was referring to FLYHT Aerospace’s Automated Flight Information and Reporting System (AFIRS™) and its ability to stream recorder data from the flight data recorder (FDR) of an aircraft while in flight.

In the article he states, “This (AFIRS) offers the value of not only providing the actual location of the aircraft, but also an understanding of how it is – its real-time status. Data can be streamed as a result of a “trigger” that might occur during a flight incident. Or, data could simply be streamed throughout the flight for routine flight status information.”

In conclusion he declares, “We have the technology to make airline travel even safer – and we need to use it.”

To read the full article, please click here.

Alex Ruus on BNN: We Argue It (FLYHT) Should Be Trading Substantially Higher

Arrow Capital Portfolio Manager, Alex Ruus, was more than positive in his response to a caller who asked about FLYHT Aerospace during last night’s (December 5th) appearance on Canada’s Business News Network (BNN). This was his response:

We like it very much and good timing. I actually sat down and had dinner with the CEO of FLYHT last week. Things are just going great. The business continues to develop. The Chinese business has been a particularly bright area in the last year and is growing strongly; looks to potentially even accelerate some more next year. Meanwhile, they continue to work with a number of global OEMs on doing business. They are on the production lines at Airbus and up on Bombardier, and we think that there are opportunities in other areas.

Meanwhile, there is increasing pressure for increased regulation in terms of flight following. At some point in the next two to three years, you could see something happen that accelerates adoption of a lot of their solutions. This is like an internet of things type company. People never talk about it that way. But it really fits into that increasing data off of industrial machinery, which in this case is airplanes. Again really critical information, which helps them fine tune the operation of the plane, prevents accidents and if there is an accident give you immediate information to know what’s happening.

We think at some point this thing is really going to take off, it has been a frustrating stock. It kind of flat lined over the last year, despite becoming profitable in the summer, it’s likely going to finish the year profitable and growing at almost 50% a year rate. So, we are scratching our head a little bit as to why the stock is trading at the 20 cent area, we argue it should be trading substantially higher.   

To watch the segment, please click here.

FLYHT Receives $2.35 Million Interest-Free Government Loan

Wednesday (November 9th) was a good news day for FLYHT as management discussed its second consecutive profitable quarter with shareholders only to be followed that afternoon by a presentation where  the company  received a $2.35 million interest-free loan from the Western Innovation (WINN) Initiative.

The WINN funding will be used to “support plans for technology development in the air and ground components of FLYHT’s satellite/aircraft communications systems” up to December 2018. The loan is to  re-paid between January 2020 and December 2024.

This is most welcome news as investors are waiting to see how the company addresses  $3.2 million in convertible debenture coming due on December 23, 2016. The conversion price of the debentures is $0.25 per share. The WINN funds provide the company with considerable breathing room as this loan meets much of the future capital required for ongoing projects.

CEO Tom  Schmutz has publicly stated that the company is on track to grow a minimum of 30% this year independent from the IP sale made in the second quarter. Next year’s organic growth is expected to be in the same range before new larger opportunities, that management believes it will secure.  The last financial report showed that the company has over $3.8 million in cash and $1.5 million in receivables.

Even though the company has been showing growth and executing on its business plan the stock has continued to trade in a very narrow range of $0.18 to $0.22 since the summer of 2015.

To read the news release on the WINN interest-free loan to FLYHT, please click here.

FLYHT Aerospace Notches Two Profitable Back To Back Quarters – Growth Continuing


On the heels of very positive third quarter (September 30th) results, CEO Tom Schmutz and CFO Nola Heale hosted FLYHT’s quarterly conference call, which was noted to be the first money making quarter based on what the company calls “traditional” revenue. In the second quarter, the company sold Intellectual Property for $2.5 million USD which drove it to profitability.

fly161109chart  Here are some key points from Mr. Schmutz during the conference call.

  • “Total revenue for the quarter was $4.1 million, our largest revenue quarter ever from traditional revenue sources and 61% larger than Q3 of last year. More importantly, the third quarter was our second consecutive positive income quarter in a row, the first back to back, money-making quarters in the company’s history!”
  • “Through September, FLYHT has posted a $1.6 million-dollar year to date profit.”
  • “As a company, we are growing our top line, especially through our operations in China and OEM sales, while we are controlling costs through initiatives in our “Achieve Excellence” high-level strategic plan.”
  • “The (Chinese) launch customer that is currently using our real-time data services is also a reference customer for other operators which allows FLYHT to demonstrate the capabilities of our system to these other Chinese operators.”
  • “We also recently announced a contract for $4.26 million USD for AFIRS hardware to an information technology company that serves aviation operators in China…we are hopeful we will conclude a follow-on service contract for these real-time data services relatively soon.”
  • “FLYHT now has signed 19 Chinese Airline Operators and has signed seven new contracts for hardware and one new contract for services during 2016.”
  • “We are working other regions of the world with the same vigor to augment these sales in China and we hope to be able to discuss these prospects soon as well.”
  • “FLYHT’s other growth area is the OEM license fees which show up in our Parts Sales revenue. We added $1.6 million in parts during Q3 2016 which brings this revenue component to $3.7 million through September. This is already more than we achieved last year (which was $2.9 million) and is growing faster than we had anticipated.”
  • “The voice and data services component of revenue is growing and is approximately 10% higher than this time in 2015. There have been challenges growing this element due to economic challenges around the world, but we continue to see expansion.”
  • “AFIRS sales revenue through September is 71% ahead of last year at the end of September… We are building a significant backlog of AFIRS sales which is allowing FLYHT more opportunities to ship and install product.”
  • “Our revenue from traditional sources year to date is $10.2 million, or just shy of all of 2015 at $10.5 million. This does not include the license fee of $3.3 million we received in 2Q.”

An archive of the full conference call is available below or on FLYHT’s website by clicking here.