AVTECH: Q1 2017 expectations2017-04-18 12:04, Edited at: 2017-04-18 12:04
AVTECH is expected to report a SEK 3.7 million revenue in Q1 2017. EBIT is expected to highly improve relative to the last quarter to approximately SEK -1.0 million (Q4 2016 it was -2.4). The roll out with EasyJet is expected in April 2017 so we hope that AVTECH will give us more information about this soon.
CEO Christer Fehrling buys shares
In March 10 it was announced that AVTECH’s founder and largest shareholder Lars Lindberg sold shares to CEO Christer Fehrling and a deputy member of the Board for SEK 2.5 per share, a discount compared to the current market price. Lars Lindberg sold 183 000 shares only 4 percent of his total holdings of 4 654 659 shares.
CEO Christer Fehrling has bought stocks in AVTECH since the end of last year. According to Holdings it is however a relative small amount of 69 822 shares in total. Christer Fehrling is the second largest shareholder in the company with a total number of shares of 2 654 895 shares.
Progress with EasyJet
In December 2016 AVTECH pushed forward its break-even estimates from Q4 2016 to Q2 2017. The biggest reason being communicated is the delay of EasyJet, due to insufficient information in the data delivery supplied by third parties. This is, in other words, not an error made by AVTECH but by a third party supplier of data.
In the 8th of February AVTECH announced that the technical reasons obstructing EasyJet’s contracted evaluation of Aventus NowCast have been identified and joint efforts from both companies to resolve the situation have been agreed upon. The finalization of the delayed analysis of flight recorder data is expected to be completed in the near future. The roll out is expected in April 2017. EasyJet has also shown a great interest to become the launch customer for the “turbulence warning” part of the new Aventus NowCast SIGMA product offering.
As we have written earlier, it is difficult to be a small software company that delivers to a sluggish, cost-and-safety conscious industry such as the airline industry. Lead times tend to be at least 12 months, and often much longer than that. We have therefore a more cautious approach than earlier and expect break-even first in Q3-Q4 2017.