Following the overnight release of its Q3 financials, FLYHT management hosted a live conference call to update shareholders on the company’s progress. During the call, CFO Nola Heale reviewed the Q3 results and CEO Bill Tempany discussed a number of new items that could make 2015 a “Perfect Storm”. Those items included a significantly increased sales force, the development of the L-3 Communications and Sierra Nevada Corporation relationships and the pressing China SatCom mandate. Before opening the call to questions Mr. Tempany stated, “We are making progress on all fronts” and “I think 2015 is going to be an excellent year for us.”
Here are some highlights of the call:
- Q3 revenue was the highest to date in 2014 at $1,808,794.
- Recurring revenue increased to $927,117, up from $881,903 in Q3/13 and now represents 51% of revenue.
- The company has made a fundamental shift from a development to a selling organization.
- The sales force has grown from three to 15 over the past ten months.
- L-3 Corporation has placed an order for 35 units from Airbus to be delivered in November.
- Sierra Nevada Corporation has made its first two orders for a total of four units for delivery in Q4
- Today FLYHT announced a new North American cargo customer. The company has two existing aircraft with AFIRS 220 and will add AFIRS to three additional aircraft. To view the news release please click here.
- 40% of the Chinese fleet of aircraft must have SatCom capability by the end of 2015. Other than factory installed Inmarsat systems, FLYHT is the only satellite communication system that has been rolled out.
- Q3 2014 saw FLYHT certified for the Airbus A320 family of aircraft, and FAA issued certification for the Hawker Beechcraft 700/800/900 model aircrafts. A large part of research and development expenses are attributed to gaining engineering certification for new aircraft.
- In August, FLYHT strengthened its board by appointing Mr. John Belcher and Mr. Barry Eccleston, who have both been working to open doors for the company. During the quarter, Mr. Thomas French retired and the company welcomed Ms. Nola Heale as the new CFO.
- FLYHT is investing in the ongoing regulatory discussions around flight tracking in order to be a part of the solution. Regulation is not expected to be a short term sales driver.
An archive of the conference call is available on FLYHT’s website, click here to access.