Sponsored by TCI International Inc.
24 Mar 21. Noble Announces Acquisition of TSSi to Expand and Enhance Products and Services for U.S. Military and Government Customers. Noble Supply & Logistics, an industry leader in Global Supply Chain Management, Logistics, DoD Mission Support, and Technology, announces the acquisition of Tactical & Survival Specialties, Inc.® (TSSi). TSSi, a decades-long provider of Special Operations Equipment (SOE), brings a specialized supply chain, an experienced team, and tailored logistics solutions to Noble’s growing SOE support to Military and other Government customers.
Tactical & Survival Specialties, Inc.® (TSSi), Harrisonburg, VA, is now a subsidiary of Noble.
“I am thrilled to join forces with TSSi and expand our product offering to our customers,” said Tom Noble, Co-Founder, and CEO of Noble. “This acquisition brings together two companies that are razor-focused on ensuring that our warfighters and government customers have the supplies, gear, and equipment they need to complete their missions. Both companies complement each other extremely well, and we are looking forward to working together to add value to the DOD supply chain.”
The Noble-TSSi partnership expands the companies’ capabilities in meeting customers’ requirements for competitive pricing on a broad range of SOE equipment, dedicated customer service, and product expertise, along with established vendor relationships and agreements to serve Military and Government customers better.
Since 2003, Noble has worked with Military and Government customers to find better products, prices, transportation, and services at worldwide locations. This new partnership with TSSi means that our customers can expeditiously procure both MRO and SOE products from one company.
“No question that Noble is the right home for TSSi,” said Bill Strang, TSSi’s Founder and CEO. “After more than 40 years of supporting those who serve and defend this country, it is important that our mission continue to grow and provide our customers with the best operational support equipment and services available. This partnership will provide our customers with more choices, better prices, and consistently reliable delivery.”
Boston-based Noble Supply & Logistics is a leading provider of supply chain management, logistics, mission support, and technology/e-commerce solutions for the U.S. Military, Federal, state, and local governments. Noble is in business to ensure that those who serve our Nation have all the supplies, gear, and equipment they need to complete their missions. From Special Operations Equipment and MRO products for the U.S. Military to hurricane relief aid, PPE, and supplies to fight COVID-19, Noble provides the materials and equipment the U.S. Government needs to face today’s challenges.
Noble’s global footprint includes operation centers, distribution centers, and consolidation points positioned to expedite deliveries and enhance product availability. A distributor for more than 11,000 manufacturers, the company stocks over one million items in warehouses across the United States and throughout CENTCOM, AFRICOM, EUCOM, and INDOPACOM. Noble maintains a contract portfolio with a ceiling value of $40B. For more information, visit https://www.noble.com/
Tactical & Survival Specialties, Inc.® (TSSi), located in Harrisonburg, Virginia, was founded in 1980 by Bill Strang. For more than 40 years, TSSi has provided the highest quality equipment and solutions for Military, law enforcement, and disaster response professionals worldwide. TSSi is a recognized leader in providing tactical and specialized operational equipment to the U.S. Special Operations community and federal, state, and local law enforcement and disaster recovery professionals. The company maintains 100,000 best-selling items in inventory, a warehouse facility located on a major shipping route, established partnerships with the industry’s leading suppliers, and is known for having the highest standards of professionalism and uncompromising integrity. For more information, visit https://www.tssi-ops.com/ (Source: PR Newswire)
25 Mar 21. Rafael concludes FY 2020 with sales of $2.7bn and net profit of $94m. Rafael Advanced Defense Systems Ltd. has released its financial results for the 2020 fiscal year. Rafael develops and manufactures advanced defense systems for the IDF and the defense establishment in Israel and for many countries around the world, with over 100 global partnerships.
In 2020, Rafael recorded sales totaling 2.7bn dollars, and a net profit of 94m dollars. Its orders were 2.3bn dollars, and its order backlog was 7.1bn dollars, equivalent to 2.3 years of sales activity. In 2020, the company made a number of milestone achievements, including the delivery of two Iron Dome batteries and of the Trophy Active Protection Systems to the US Army, the selection of its SPYDER air defense system by the Czech Republic, expansion of the SPIKE user family to new markets, new contracts for its SPICE, Litening and Bnet systems, completion of development of the i-Derby ER air-to-air missile GBAD variant, addition of new capabilities to the Iron Dome system and combined interception tests with the David’s Sling air defense systems, entrance into the multi-dimension combat system domain, and more. It also won a contract for a cross-service intelligence program with the Israeli Ministry of Defense, and was awarded two Israel Security Prizes, for the 54th time since the company’s establishment.
In 2020, Rafael continued to develop, manufacture and market its systems and capabilities, providing users with end-to-end solutions for various air, land, naval, space and cyber requirements. Despite COVID-19 limitations, Rafael continued to stand by its commitment of on-time delivery to its customers around the world, while remaining active in forging new industrial alliances with its global partners to facilitate domestic production, transfer of technology and support of local economies.
In addition, in 2020 Rafael continued its investment and professional development of its human capital, while maintaining its significant investment in R&D (9.3% of sales) and its cooperation with academic institutions, opening new R&D facilities throughout the country, mainly dealing with cyber, intelligence, AI, space, and other emerging technologies.
Rafael is one of Israel’s three largest defense companies, with 8,000 employees and numerous subcontractors and service suppliers, indirectly providing employment for some 20,000 households.
Rafael’s Chairman, Dr. Uzi Landau: “Through the challenges and complexities of 2020, Rafael has maintained its unique ability to continue serving as Israel’s high-tech pillar of defense and maintain its solid position as a robust, vibrant, business-oriented company, with remarkable technological achievements. This is primarily due to its employees’ hard work and dedication, to our partners in Israel and across the globe, and to the support of the company’s management and board of directors. I wish to express my appreciation and gratitude to all of them, for their contribution to the security of the State of Israel and to Rafael’s continuing success in Israel and around the world.”
Rafael’s President & CEO, Maj. Gen. (Ret.) Yoav Har-Even: “In the past year we have continued to carry out a wide variety of activities to address the security needs of Israel and of our customers and partners around the world. Our performance has been widely affected by the global COVID-19 crisis, lack of a national budget in Israel, and the erosion of the Shekel-to-Dollar exchange rates. However, our foresight and planning, through careful marketing, operational activities, and above all, the commitment of all of our employees, have been effective in reducing the impact of these factors, and meet all of our deadlines and delivery commitments, while expanding our business activity in areas such as M&A, penetration into new markets, and development of new domains of activity.”
24 Mar 21. Leonardo postpones DRS IPO, shares fall. Italian defence and aerospace group Leonardo postponed the initial public offering (IPO) of its U.S. electronics unit DRS sending its shares in Milan down more than 10%.
Leonardo, which hoped to use the proceeds from the IPO to cut its debt pile and potential M&A activity, said adverse market conditions had prevented an adequate valuation of the unit.
“The share sale was hit by expectations that the U.S. administration could trim its military spending to focus on its stimulus package for the whole economy,” one source close to the matter told Reuters.
Leonardo shares fell as much as 11% and were down 7.5% by 0844 GMT, making the group the biggest loser on Milan’s blue-chip index.
Leonardo said the decision to postpone the offering was made “notwithstanding investor interest within the price range during the course of the roadshow”.
The IPO of DRS, which counts the U.S. military as a customer, was launched last week.
DRS specialises in naval systems, ground combat mission command and network computing, satellite communications and network infrastructure, avionics and other equipment.
Leonardo, which aimed to complete the listing by the end of March, was offering about 22% of Leonardo DRS on the New York bourse, valuing the stake at up to $702m.
“DRS remains a core part of Leonardo’s business portfolio and the IPO will potentially be revisited when market conditions are more favourable and a successful IPO at an appropriate valuation for this strategic business can be achieved,” Leonardo said in a statement, adding it would continue to support the unit’s development within the group. (Source: Google/Reuters)
24 Mar 21. Elbit Systems Ltd. (the “Company”) (NASDAQ and TASE: ESLT), the international high technology company, reported today its consolidated results for the fourth quarter and full year ended December 31, 2020.
Backlog of orders at $11.0bn; Revenues of $4.7bn; Non-GAAP net income of $318.5m; GAAP net income of $237.7m;
Non-GAAP net EPS of $7.20; GAAP net EPS of $5.38
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented, “2020 saw our employees around the world successfully address the challenges presented by the global Covid-19 pandemic and enabled Elbit Systems to achieve positive results for both the fourth quarter and the year. Our year-end backlog increased by 10% relative to the end of 2019 demonstrating sustained demand for our systems and services from our customers around the world. I am pleased with our operational performance in a challenging year, particularly the improved cash generation. Our solid backlog, combined with ongoing worldwide demand for our broad portfolio of technologies and solutions, provides us with confidence in the Company’s future prospects”.
Fourth quarter 2020 results:
Revenues in the fourth quarter of 2020 were $1,377.7m, as compared to $1,321.5m in the fourth quarter of 2019.
Non-GAAP(*) gross profit amounted to $363.0m (26.3% of revenues) in the fourth quarter of 2020, as compared to $345.8m (26.2% of revenues) in the fourth quarter of 2019. GAAP gross profit in the fourth quarter of 2020 was $357.8m (26.0% of revenues), as compared to $284.3m (21.5% of revenues) in the fourth quarter of 2019. The gross profit in the fourth quarter of 2019 included expenses of $55.0, related to the acquisition of a U.S. subsidiary, Elbit Night Vision (“ENV”).
Research and development expenses, net were $109.1m (7.9% of revenues) in the fourth quarter of 2020, as compared to $97.6m (7.4% of revenues) in the fourth quarter of 2019.
Marketing and selling expenses, net were $81.2m (5.9% of revenues) in the fourth quarter of 2020, as compared to $80.5m (6.1% of revenues) in the fourth quarter of 2019.
General and administrative expenses, net were $62.9m (4.6% of revenues) in the fourth quarter of 2020, as compared to $46.4m (3.5% of revenues) in the fourth quarter of 2019. The lower level of general and administrative expenses in the fourth quarter of 2019 resulted mainly from income related to settlement of litigation in the U.S.
Non-GAAP(*) operating income was $113.8m (8.3% of revenues) in the fourth quarter of 2020, as compared to $125.4m (9.5% of revenues) in the fourth quarter of 2019. GAAP operating income in the fourth quarter of 2020 was $104.6 m (7.6% of revenues), as compared to $63.6m (4.8% of revenues) in the fourth quarter of 2019. GAAP operation income in the fourth quarter of 2019 were reduced by $55.0m due to expenses related to the acquisition of ENV.
Financial expenses, net were $32.5m in the fourth quarter of 2020, as compared to $16.4m in the fourth quarter of 2019. The increase in financial expenses in the fourth quarter of 2020 was mainly a result of the revaluation of lease liabilities due to the strengthening of the New Israeli Shekel versus the U.S. Dollar.
Other expenses net were $7.3m in the fourth quarter of 2020, as compared to $1.6m in the fourth quarter of 2019. Other expenses in the fourth quarter of 2020 were mainly due to the non-service cost components of pension plans.
Taxes on income were a tax expense of $1.9m in the fourth quarter of 2020, as compared to a tax benefit of $9.1m in the fourth quarter of 2019. The tax benefit in the fourth quarter of 2019 was related mainly to adjustments for prior years following tax assessments in some of the Company’s subsidiaries in Israel.
Equity in net earnings of affiliated companies and partnerships was $5.0m in the fourth quarter of 2020, as compared to a net loss of $3.5m the fourth quarter of 2019. The loss in the fourth quarter of 2019 was mainly a result of a fair value re-evaluation of holdings in an affiliated company.
Net income attributable to non-controlling interests was $0.1m in the fourth quarter of 2020, as compared to a loss of $0.3m in the fourth quarter of 2019.
Non-GAAP(*) net income attributable to the Company’s shareholders in the fourth quarter of 2020 was $105.0 m (7.6% of revenues), as compared to $109.3m (8.3% of revenues) in the fourth quarter of 2019. GAAP net income attributable to the Company’s shareholders in the fourth quarter of 2020 was $67.8m (4.9% of revenues), as compared to $51.5m (3.9% of revenues) in the fourth quarter of 2019.
Non GAAP(*) diluted net earnings per share attributable to the Company’s shareholders were $2.38 for the fourth quarter of 2020, as compared to $2.47 for the fourth quarter of 2019. GAAP diluted earnings per share attributable to the Company’s shareholders in the fourth quarter of 2020 were $1.53, as compared to $1.16 in the fourth quarter of 2019.
Full year 2020 results:
Revenues for the year ended December 31, 2020 were $4,662.6m, as compared to $4,508.4m in the year ended December 31, 2019.
The majority of the revenues in 2020 were in the airborne systems and land systems areas of operation. The strength in the electro-optics area of operation was mainly due to the revenues of ENV, a U.S. subsidiary acquired during 2019.
On a geographic basis, the increase in North America was mainly a result of higher sales of airborne systems and revenues of ENV products. The increase in Israel was mainly a result of revenues of IMI Systems Ltd. (IMI), that was acquired at the end of 2018. The decrease in Asia-Pacific was mainly a result of lower sales of radios and airborne systems.
Cost of revenues for the year ended December 31, 2020 was $3,497.5m (75.0% of revenues), as compared to $3,371.9m (74.8% of revenues) in the year ended December 31, 2019. Cost of revenues in 2020 included non-cash expenses of approximately $60.0m, related to impairment of assets and inventory write-offs due to the impact of COVID-19. Cost of revenues in 2019 included expenses of $55.0m, related to the acquisition of ENV.
Non-GAAP(*) gross profit for the year ended December 31, 2020 was $1,247.2m (26.7% of revenues), as compared to $1,213.5m (26.9% of revenues) in the year ended December 31, 2019. GAAP gross profit in 2020 was $1,165.1m (25.0% of revenues), as compared to $1,136.5m (25.2% of revenues) in 2019.
Research and development expenses, net for the year ended December 31, 2020 were $359.7m (7.7% of revenues), as compared to $331.8m (7.4% of revenues) in the year ended December 31, 2019.
Marketing and selling expenses, net for the year ended December 31, 2020 were $290.7m (6.2% of revenues), as compared to $301.4m (6.7% of revenues) in the year ended December 31, 2019.
General and administrative expenses, net for the year ended December 31, 2020 were $223.9m (4.8% of revenues), as compared to $214.7m (4.8% of revenues) in the year ended December 31, 2019.
Other operating income, net for the year ended December 31, 2020 amounted to $35.0m, as compared to $33.0m for the year ended December 31, 2019. Other operating income in 2020 resulted mainly from capital gains related to sale and lease back of buildings by a subsidiary in the U.S. Other operating income in 2019 was mainly a result of a capital gain related to the sale and lease back of buildings by a subsidiary in Israel.
Non-GAAP(*) operating income for the year ended December 31, 2020 was $390.1m (8.4% of revenues), as compared to $379.7m (8.4% of revenues) in the year ended December 31, 2019. GAAP operating income in 2020 was $325.7m (7.0% of revenues), as compared to $321.6m (7.1% of revenues) in 2019.
Financial expenses, net for the year ended December 31, 2020 were $71.3m, as compared to $69.1m in the year ended December 31, 2019. Financial expenses, net in 2020 and 2019 included exchange rate differences of approximately $21.0 and $23.1m, respectively, related to lease liabilities denominated in foreign currencies (mainly in New Israeli Shekels).
Other income, net was $7.4m in 2020, as compared to other expenses of $6.2m in 2019. Other income in 2020 was a result of revaluation and capital gain related to the sale of shares in a subsidiary in Israel, net of expenses related to non-service costs of pension plans. Other expenses in 2019 were mainly due to the non-service cost components of pension plans.
Taxes on income for the year ended December 31, 2020 were $36.4m (effective tax rate of 13.9%), as compared to $19.4m (effective tax rate of 7.9%) in the year ended December 31, 2019. The effective tax rate was affected by the mix of the tax rates in the various jurisdictions in which the Company’s entities generate taxable income and other income that is not part of the taxable income mainly related to non-cash items such as impairment of assets. Taxes on income in 2020 and 2019 were reduced by a tax benefit related to adjustments for prior years following a tax settlement of the Company and some of its subsidiaries in Israel with Israeli tax authorities.
Equity in net earnings (losses) of affiliated companies and partnerships for the year ended December 31, 2020 was $12.6m, as compared $1.8m in the year ended December 31, 2019.
Net income attributable to non-controlling interests for the year ended December 31, 2020 was $0.3m, as compared to $0.8m in the year ended December 31, 2019.
Non-GAAP(*) net income attributable to the Company’s shareholders for the year ended December 31, 2020 was $318.5m (6.8% of revenues), as compared to $297.8 m (6.6% of revenues) in the year ended December 31, 2019. GAAP net income attributable to the Company’s shareholders in the year ended December 31, 2020 was $237.7m (5.1% of revenues), as compared to $227.9m (5.1% of revenues) in the year ended December 31, 2019.
Non-GAAP(*) diluted net earnings per share attributable to the Company’s shareholders for the year ended December 31, 2020 were $7.20, as compared to $6.79 for the year ended December 31, 2019. GAAP diluted net earnings per share attributable to the Company’s shareholders in the year ended December 31, 2020 were $5.38, as compared to $5.20 in the year ended December 31, 2019.
Backlog of orders for the year ended December 31, 2020 totaled $11,024m, as compared to $10,029m as of December 31, 2019. Approximately 65% of the current backlog is attributable to orders from outside Israel. Approximately 65% of the current backlog is scheduled to be performed during 2021 and 2022.
Net cash provided by operating activities in the year ended December 31, 2020 was $278.8m, as compared to $53.3m net cash used for operating activities in the year ended December 31, 2019. The lower level of operating cash flow in 2019 was mainly a result of lower collection of receipts and advances received from customers, mainly in Israel.
Impact of the COVID-19 Pandemic on the Company:
The Coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization in March 2020. COVID-19 has had significant negative impacts on the worldwide economy, resulting in disruptions to supply chains and financial markets, significant travel restrictions, facility closures and shelter-in-place orders in various locations. Elbit Systems is closely monitoring the evolution of the COVID-19 pandemic and its impacts on the Company’s employees, customers and suppliers, as well as on the global economy. As we last reported on November 24, 2020, we have been taking a number of actions to protect the safety of our employees as well as maintain business continuity and secure our supply chain. We also reported on a number of activities where we are leveraging our technological capabilities to assist hospital staffs and other first responders protecting our communities from the impact of the pandemic. All of these actions remain ongoing. We have implemented a series of cost control measures to help limit the financial impact of the pandemic on the Company, in parallel to the measures we are taking to maintain business continuity and deliveries to our customers. We also are working on efficiency initiatives with a number of our suppliers. We continue to evaluate our operations on an ongoing basis in order to adapt to the evolving business environment.
During 2020 our defense activities, which account for most of our business, were not materially impacted by the pandemic, although some of our businesses experienced certain disruptions due to government directed safety measures, travel restrictions and supply chain delays.
The significant slow-down in commercial air traffic, and the expectation that a commercial air traffic recovery to 2019 levels will likely take a number of years, have reduced the demand for products and services for the commercial aviation markets. Additionally, manufacturers of aircraft for these markets have announced plans to reduce production rates to adapt to the lower demand.
Following a review of the economic impact on the Company’s assets overall, and those assets impacted by the commercial aviation industry in particular, the Company recorded in the third quarter of 2020 non-cash expenses related to impairment of assets and inventory write-offs, due to COVID-19, in the amount of approximately $60 m. These expenses were recorded mainly in the “Cost of Revenues” line item in the Consolidated Statement of Income and were eliminated in the non-GAAP results as a category of expenses that are not part of the Company’s recurring business.
We believe that as of December 31, 2020, Elbit Systems had a healthy balance sheet, adequate levels of cash and access to credit facilities that provide liquidity when necessary. We have given high priority to cash management and adequate cash reserves to run the business.
The extent of the impact of COVID-19 on the Company’s performance depends on future developments including the duration and spread of the pandemic, the measures adopted by governments to limit the spread of the pandemic, including the roll-out of vaccinations, and resulting actions that may be taken by our customers and our supply chain, all of which contain uncertainties. As noted in our annual report on Form 20-F, the preparation of financial reports requires us to make judgments, assumptions and estimates that affect the amounts reported. For our financial results for the year ended December 31, 2020, we considered the economic impact of the COVID-19 pandemic on our critical and significant accounting estimates. The expected impact of the COVID-19 pandemic did not have a material effect on our judgments, assumptions and estimates reflected in the results. However, our future results may differ materially from our estimates. As events continue to evolve in connection with the COVID-19 pandemic, the estimates we use in future periods may change materially.
* Non-GAAP financial data: The following non-GAAP financial data is presented to enable investors to have additional information on the Company’s business performance as well as a further basis for periodical comparisons and trends relating to the Company’s financial results. The Company believes such data provides useful information to investors by facilitating more meaningful comparisons of the Company’s financial results over time. Such non-GAAP information is used by the Company’s management to make strategic decisions, forecast future results and evaluate the Company’s current performance. However, investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies.
The non-GAAP financial data includes reconciliation adjustments regarding non-GAAP gross profit, operating income, net income and diluted EPS. In arriving at non-GAAP presentations, companies generally factor out items such as those that have a non-recurring impact on the income statements, various non-cash items including significant exchange rate differences, significant effects of retroactive tax legislation, changes in accounting guidance, financial transactions and other items not considered to be part of regular ongoing business, which, in management’s judgment, are items that are considered to be outside of the review of core operating results.
In the Company’s non-GAAP presentation, the Company made certain adjustments, as indicated in the table below.
These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP.
23 Mar 21. Rolls-Royce sale of Bergen Engines blocked on security grounds. The aero engineer signed an agreement to sell Bergen to TMH in February. Rolls-Royce PLC (LON:RR.) has suffered a blow to its disposal programme after the Norwegian government blocked the £130m sale of Bergen Engines to a Russian firm on national security grounds.
The aero engineer signed an agreement to sell Bergen to TMH in February and said it had contacted the Norwegian authorities in advance about the deal
“We have co-operated with the Government’s subsequent review by pausing the sales process and believed we had identified a new owner willing to invest in the business and its people for the long-term. We await formal legal notification by the Norwegian Government,” teh UK group added in a statement.
Rolls-Royce said that it still intends to sell the business as Bergen’s medium-speed gas and diesel engines are not core to its long-term strategy.
The disposal was part of a plan to raise at least £2bn from asset sales by early 2022.
“We will be seeking the assistance of the Norwegian Government to swiftly find another option, which can provide Bergen Engines and its people with the investment required for the future and Rolls-Royce with an appropriate outcome,” the statement added.
Established in 2002, TMH is privately-owned and employs 100,000 people across 25 sites worldwide making railway rolling stock. (Source: proactiveinvestors.co.uk)
22 Mar 21. Ascent AeroSystems and Dynetics Announce New Orders and Expanded Commitment to Support Defense Market. “Dynetics and Ascent AeroSystems have built a strong relationship over the last couple of years, and we’re delighted to expand our collaboration. The order for additional Spirits is great validation of our technology and evidence of its unmatched performance and unique capabilities,” said Ascent AeroSystems’ CEO Peter Fuchs.
With a unique cylindrical configuration that’s far more portable and rugged than conventional multi-rotor drones, Ascent’s coaxials are ideal for mission-critical operations in the toughest environments.
“The Spirits we received in 2020 have lived up to the performance and reliability of Ascent’s other coaxial UAVs, and its compact, rugged form-factor, modular design and outstanding flight performance have allowed us to demonstrate concepts of operation that have been simply not possible with conventional multirotors,” said Mark Miller, Dynetics vice president and division manager of Missile and Aviation Systems. “We’re identifying more and more opportunities where this platform can be used to benefit warfighters on the ground, in the air and on the sea.”
“Our customers are quickly learning that with this platform they can have more than a “basic pocketknife” unmanned system that’s only useful for a single mission type,” Miller further commented. “With the Spirit, vehicles can be adapted very quickly. Operators can choose the payload they need to solve an immediate problem, and be ready to fly in a matter of seconds.”
Spirits are made in the United States and available in a variety of configurations, including ready-to-fly versions that include a variety of EO/IR camera options. A choice of ground control stations is also available. Inquiries can be made at www.ascentaerosystems.com. (Source: PR Newswire)
22 Mar 21. Following Recent Dramatic Rise in Infrastructure Cyber Attacks, SCADAfence Accelerates Market Engagement with $12m Round Funding. The Funding Round, Led By JVP, is also Joined by Rapid7.
Over the Last Year, SCADAfence Tripled both its Revenues and its Customer Base. SCADAfence, the global leader in cybersecurity for Operational Technology (OT) & Internet of Things (IoT) environments, announced that it has secured $12m in funding aimed at accelerating growth. The round, led by existing investor JVP, also includes strategic investor Rapid7 and the participation of other existing shareholders. The new funding will help SCADAfence further accelerate its expanding global customer base across a diverse set of industries – including manufacturing, water treatment, critical infrastructure, oil & gas, pharmaceuticals, chemicals, and building management systems (BMS). Some of the company’s existing customers include Honda, Murata, Vestel, Mitsui Fudosan, Taro Pharmaceuticals, and numerous other Fortune 500 companies in the US.
In addition to facilitating the next stage of SCADAfence’s business growth, the funding will enable the company to continue to build its worldwide operations to meet the cybersecurity needs of manufacturing & critical infrastructure at all levels, no matter the size or complexity of the organization. The round will enable the company to continue innovating by strengthening its full suite of OT & IoT cybersecurity solutions, including the world’s first and only dedicated governance, risk management, and compliance (GRC) platform for industrial regulations. The effort to make OT/IoT-specific cybersecurity expertise and technology more accessible is a key element of the company’s overarching mission to keep civilians safe from industrial cyberattacks.
“I’m proud to be a part of this latest development in SCADAfence’s growth”, said Shai Schiller, JVP General Partner, “the company is a strong and significant player in the field of critical infrastructure protection and in securing industries such as automotive and other manufacturing enterprises. Attacks on Operation Technology (OT) networks endanger countries and civilians alike, as they pose the soft underbelly for all critical infrastructure in the fields of energy, water supply, transportation and all aspects of our daily operations and basic necessities. The company plans to significantly expand its US operations following the entry of Rapid7 as a strategic investor and partner. Rapid7’s partnership exposes SCADAfence to a substantial salesforce, dozens of channels and thousands of strategic customers. Aside from the go to market expansion, the company is also expanding its product portfolio offering to cater for the ever-changing threat landscape and in essence offering the broadest set of security products in its competitive landscape”.
“Cyber risks to industrial control systems are rapidly increasing, as is the market demand for holistic, risk-based solutions that provide visibility across IT and OT environments,” said Conan Reidy, Senior Vice President of Corporate Development and Technology Alliances at Rapid7. “Our strategic investment in SCADAfence further solidifies our commitment to this growing market and we look forward to working with the SCADAfence team to bring OT & IoT cybersecurity capabilities to a broader customer base.”
“This investment comes at a very opportune time for our industry as the demand for OT & IoT security is at an all-time high. SCADAfence is an organization in hyper-growth mode,” said Elad Ben-Meir, CEO of SCADAfence. “SCADAfence has experienced exponential growth in 2020, despite the pandemic. We managed to triple our revenues and the number of our customers. We also won 11 industry awards – more than any other company in the industrial cybersecurity space – including recognition from Gartner as a Cool Vendor and recognition by ISG as an industry leader. Moreover, Rapid7, a global cyber security leader has identified SCADAfence as the best-of-breed OT & IoT security solution and we believe our strategic partnership will create an industry-leading value proposition.”
As part of SCADAfence’s rapid growth, the company has recruited several top-tier executives from leading cybersecurity organizations to grow their executive teams in sales engineering and revenue growth. Amongst them is Gordon Boyce, the former CEO of Forescout, who joins the executive team as SCADAfence’s CRO to facilitate the company’s rapid growth. SCADAfence is looking to add at least 20 additional new members to their global team in the near future.
SCADAfence is the global technology leader in OT & IoT cybersecurity. SCADAfence offers a full suite of industrial cybersecurity products that provides full coverage of large-scale networks, offering best-in-class network monitoring, asset discovery, governance, remote access, and IoT device security. A Gartner “Cool Vendor” in 2020, SCADAfence delivers proactive security and visibility to some of the world’s most complex OT networks, including the largest manufacturing facility in Europe. SCADAfence enables organizations in critical infrastructure, manufacturing, and building management industries to operate securely, reliably, and efficiently. To learn more, visit our website, check out our blog, or follow us on LinkedIn.
JVP was founded in 1993 by Dr. Erel Margalit, is an internationally renowned VC fund. Among the pioneering firms of the Israeli VC industry, JVP has been instrumental in building some of the world’s largest companies to emerge, facilitating numerous IPOs on NASDAQ, including CyberArk Software (NASDAQ: CYBR, $4.7bn mkt. cap.), QLIK Technologies (NASDAQ: QLIK, then $4bn mkt. cap.) and Cogent Communications (NASDAQ: CCOI, $3bn mkt. cap.) as well as many large industry sales. Over the past decade JVP has spearheaded the creation of international Centers of Excellence, including the AI and Media center in Jerusalem, the Cyber center in Beer Sheva, the Foodtech and Agritech center in the Galilee, the International Cyber and FinTech center in NYC, in partnership with NYC/EDC and the leading universities of the city. Recently JVP has decided to open a newly emerging center in the UAE that will be a new chapter for Israeli technologies to engage with the region. For more information on JVP, visit jvpvc.com. (Source: PR Newswire)
22 Mar 21. MDA Ltd. Files Preliminary Prospectus for Initial Public Offering of Common Shares. MDA Ltd. (“MDA” or the “Company”), a leading technology and service provider to the burgeoning global space industry, today announced that it has filed, and obtained a receipt for, a preliminary base PREP prospectus (the “Preliminary Prospectus”) with the securities regulatory authorities in each of the provinces and territories in Canada for a proposed initial public offering of common shares of MDA (the “Offering”). The gross proceeds of the Offering are expected to be $500m. The number of common shares to be sold and price per common share have not yet been determined.
The Offering is being made through a syndicate of underwriters led by BMO Capital Markets, Morgan Stanley Canada Limited and Scotiabank, as joint bookrunners, with Barclays Capital Canada Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., CIBC World Markets Inc., National Bank Financial Inc. and Stifel Nicolaus Canada Inc., as underwriters.
Goodmans LLP and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal counsel to the Company, and Osler, Hoskin & Harcourt LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as legal counsel to the underwriters.
A Preliminary Prospectus containing important information relating to these securities has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. The Preliminary Prospectus is still subject to completion or amendment. The Preliminary Prospectus is available on SEDAR at www.sedar.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final base PREP prospectus has been issued.
The Preliminary Prospectus has not yet become final for purposes of a distribution of securities to the public. No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the time of receipt for the final base PREP prospectus or other authorization is obtained from the securities regulatory authority in such province or territory. Copies of the Preliminary Prospectus are available on SEDAR at www.sedar.com.
The securities have not been and will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”), as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States, except to Qualified Institutional Buyers (as defined in Rule 144A of the U.S. Securities Act). This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Completion of the Offering is subject to the receipt of customary approvals, including regulatory approvals. (Source: PR Newswire)
22 Mar 21. Liberty Resumes Trading on the TSX Venture Exchange Under the Symbol “SCAN.” Liberty Defense Holdings Ltd. (“Liberty” or the “Company”) (TSXV: SCAN, OTCQB: LDDFF, FRANKFURT: LD2), a leading concealed weapons detection company, is pleased to announce that its common shares will resume trading on the TSX Venture Exchange (the “Exchange”) under the symbol “SCAN” at market open, today, March 22, 2021.
Liberty is developing contactless security solutions for concealed weapons detection in high volume foot traffic areas. The Company’s HEXWAVE product is designed for discreet, modular, and scalable protection to provide layered, stand-off detection capability. The HEXWAVE product offers a means to proactively counter evolving urban threats. The integrated active 3-D imaging sensor and Automatic Threat Detection (ATD) using AI is designed to detect metal and non-metal firearms, knives, explosives and other threats.
Liberty recently completed its previously announced business combination with DrawDown Detection Inc. (“DrawDown”), a gunpowder sensor detection company that commercializes intellectual property for use in the public safety market. Management expects that the combined businesses of Liberty and DrawDown will strengthen the Company’s ability to protect communities and preserve peace of mind through innovative security detection solutions. The goal of the Company is to bring a multi-product security systems portfolio to the global threat detection market, composed of cutting-edge technologies that are complementary to high-throughput, non-intrusive weapons detection that can be deployed across the full spectrum of urban security vertical markets.
“I want to thank everyone involved in making this transaction possible and welcome all shareholders to a newly strengthened Liberty. We were very humbled by the amount of interest that our latest financing has gathered,” Bill Frain, CEO and Director of Liberty, comments. “With the engineering and management team’s experience and my twenty-five year-plus career leading security technology companies (most recently NASDAQ: LHX), we believe that the new technologies Liberty plans to bring to market over the next 12-30 months will help shape the contactless security market for the foreseeable future.”
On Behalf of Liberty Defense
Bill Frain, CEO & Director
About Liberty Defense
Liberty provides security solutions for concealed weapon detection in high volume foot traffic areas and has secured an exclusive license from Massachusetts Institute of Technology (MIT), as well as a technology transfer agreement, for patents related to active 3D radar imaging technology that are packaged into the HEXWAVE product. The system is designed to provide discrete, modular and scalable protection to provide layered, stand-off detection capability. This is intended to provide a means to proactively counter evolving urban threats. The sensors with active 3D radar imaging and Artificial Intelligence (AI)-enhanced automatic detection are designed to detect metal and non-metal firearms, knives, explosives and other threats. Liberty is committed to protecting communities and preserving peace of mind through superior security detection solutions. Learn more: LibertyDefense.com. (Source: PR Newswire)
22 Mar 21. Cubic Corp receives $2.4bn buyout offer from Singapore’s ST Engineering. Cubic Corp said on Monday it had received an unsolicited offer from Singapore’s ST Engineering to buy the company for about $2.4bn, boosting the software maker’s shares to match the offer price of $76.
ST Engineering’s offer is superior to a rival bid by private-equity firm Veritas Capital and U.S. hedge fund Elliott Management, which together agreed to buy Cubic for $2.2bn, or $70 per share, last month.
Cubic, whose shares rose as much as 9.2%, said its board had decided to engage in discussions with ST Engineering, which makes automatic fare collection machines for metro stations, to evaluate the new offer. Cubic makes revenue management software for the transportation industry. ST Engineering said Cubic’s transportation systems business fits with ST Engineering’s strategy to pursue growth in the smart city domain. (Source: Reuters)
22 Mar 21. Ametek to snap up Abaco Systems in $1.35bn deal. Electronic instruments specialist Ametek is to acquire fellow US firm Abaco Systems in a $1.35bn all-cash deal, it was announced on Monday.
Ametek Inc. Ametek will acquire Abaco, a specialist in embedded computing systems for the aerospace and defence markets, from private equity firm Veritas Capital. Huntsville, Alabama-based Abaco has annual sales of around $325m.
David Zapico, Ametek chief executive, said: “[Abaco’s] market leading embedded computing solutions are ideally positioned across a number of attractive aerospace and defence platforms, further broadening our differentiated product offering serving these markets.”
The deal, which is subject to regulatory approval, is expected to close mid 2021. (Source: https://www.sharecast.com/)
20 Mar 21. Aerospace firm Motor Sich’s assets, shares frozen by Ukraine court. A Ukrainian court has frozen the assets and shares of aerospace company Motor Sich as part of a criminal investigation, the state security service SBU said on Saturday. Chinese aviation firm Skyrizon has sought to buy a controlling stake in the privately held Motor Sich, which builds engines for helicopters and planes used around the world, including the Antonov An-225 and An-124 – the world’s largest cargo planes.
That has presented Kyiv with a problem, as it relies on Washington as its biggest military aid donor yet seeks deeper commercial ties with Beijing.
Washington is opposed to the Chinese deal and in the final days of the administration of President Donald Trump, Washington added Skyrizon to a Military End-User (MEU) List, restricting its access to U.S. exports.
Ukrainian President Volodymyr Zelenskiy in January signed a decree imposing sanctions on Skyrizon and his party told parliament this month it would submit a bill on nationalising Motor Sich.
“This is not only about the fate of one enterprise, but about how the state is able to protect its own interests,” SBU boss Ivan Bakanov was quoted as saying in an SBU statement. (Source: Reuters)
19 Mar 21. Saab Group (SAABB SS) – BUY, SEK239.00 PT: SEK280.00. Today’s reorganisation looks sensible, but might be interpreted as implying Saab has not been operating efficiently, and seamlessly executing major contracts. On the other hand, the reorganisation frees the Combitech consulting business. Prior to this, the overall performance of the Industrial Products and Services division led us to attribute little value to Combitech. Now, we venture a value of 4.5% to 6% of Saab’s market capitalisation.
Sharper Saab. The new structure moves from six to four business areas: Aeronautics, Dynamics, Kockums and Surveillance. Industrial Products and Services (IPS) and Support Services will be integrated into the four new areas. Aeronautics will take complete responsibility for the Gripen programme, including support and aftermarket. Saab states this change should simplify interaction with the customer and remove internal interfaces. The IPS businesses related to commercial aviation move to Aeronautics. The existing Surveillance division gets full responsibility for all airborne radar solutions, taking over the Airborne Intelligence, Surveillance and Reconnaissance unit from the former Support & Services division, as well as Air Traffic Management from IPS. It all looks sensible, in our view.
Industrial Products & Services (IPS). Since its creation was announced in Sept 2014, IPS has always sat slightly uncomfortably in the divisional structure. Saab’s logic in 2014 was that the business units in IPS differed from Saab’s other operations because their focus was on business-to-business customers. IPS included Combitech, an independent technology consulting company. Combitech will now be reported separately. Saab states: “The purpose of increased independence is to further support Combitech’s growth journey outside Saab, in the manufacturing industry, service sector, public sector and defense”.
Combitech. Combitech’s website states it has 1,900 consultants in 30 locations in Sweden, Norway, Finland and Denmark. In FY20, Combitech’s sales were SEK 2,557m, up 2% despite some disruption from COVID-19. EBIT rose by 24% to SEK 208m. Operating cash flow was SEK 435m. Order intake was SEK 2,526m. The fashionable element of Combitech is perhaps the assignments won in the financial industry linked to the European framework TIBER – Threat Intelligence-Based Ethical Red-teaming, an EU-wide guide on how authorities and companies should work together to test and improve cyber resilience by carrying out a controlled cyberattack.
Shape Shifter. Saab has conducted various reorganisations over the last fifteen years. This latest reorganisation might be interpreted as implying Saab has not been operating smoothly, but the promise of an independent Combitech will most probably be the dominant consideration. We have cast around unsuccessfully for peers, so find valuing Combitech challenging (the July 2017 acquisition of WS Atkins by SNC Lavalin was of far greater magnitude and in a quite different area). Given the overall performance of IPS in FY20 (Sales SEK 5,846m and underlying EBIT loss of SEK 83m) we attributed little value to Combitech. We now ponder a value of SEK 1.5-2.0bn, around 4.5% to 6% of Saab’s market capitalisation. (Source: Jefferies)
19 Mar 21. Embraer Reports earnings.
- Embraer delivered 28 commercial jets and 43 executive jets (23 light / 20 large) in 4Q20, and in 2020 delivered 44 commercial jets and 86 executive jets (56 light / 30 large). Total company firm order backlog at the end of 2020 was US$ 14.4bn;
- Revenues in 4Q20 reached US$ 1,841.4m and for fiscal year 2020 were US$ 3,771.1m, representing year-over-year declines of 11.7% and 31.0%, respectively, versus their prior year periods;
- Excluding special items, adjusted EBIT and EBITDA were US$ 76.6m and US$ 145.6m, respectively, yielding adjusted EBIT margin of 4.2% and adjusted EBITDA margin of 7.9%. For fiscal year 2020, adjusted EBIT was US$ (100.5) m (-2.7% margin) and adjusted EBITDA was US$ 82.1m (2.2% margin), with the negative EBIT mostly driven by weakness in the Company’s Commercial Aviation segment within the context of the Covid-19 pandemic;
- Adjusted net loss (excluding special items and deferred income tax and social contribution) in 4Q20 was US$ (12.5)m, with adjusted loss per ADS of US$ (0.07), while adjusted net loss for 2020 was US$ (463.7)m, with adjusted loss per ADS for the period of US$ (2.52);
- Embraer reported a significant improvement in Free cash flow in 4Q20, reporting cash generation of US$ 725.1m in the period, leading to full year free cash flow usage of US$ (990.2)m in 2020;
- The Company finished the year with total cash of US$ 2.8bn, steady versus the US$ 2.8bn in cash at the end of 2019. Embraer’s net debt position at the end of 2020 was US$ 1,695.7m;
Due to continued uncertainty related to the COVID-19 pandemic and its impacts on the industry, the Company has decided to not publish 2021 financial and delivery guidance at this point.
19 Mar 21. Intelsat’s Bankruptcy Court Postpones Hearing Regarding SES Unfair Practices Claim… Plus, Northrop Grumman’s MEV-2 Closing On Target Satellite. Intelsat’s bankruptcy court has postponed a March 17th hearing of the SES action against Intelsat where SES is claiming $1.8bn for what that company alleges is unfair practice during the C-Band Alliance process and the subsequent division of the FCC’s ‘incentive’ payments for clearing the satellite frequencies.
The bankruptcy court adjourned the hearing on the motion of Intelsat SA’s convertible noteholders for authority to file a complaint determining ownership of the Accelerated Relocation Proceeds and SES’s motion to intervene in that complaint, until June 14th.
However, June 14 is also the currently-scheduled date of the hearing on confirmation of Intelsat’s plan of reorganization. The Court specifically acknowledged that the issue of ownership of the Accelerated Relocation Proceeds was a critical issue in the Intelsat cases and recognised that many parties, including SES, wanted the opportunity to be heard on that issue. The Judge ultimately determined that the best time to take up that issue was in June, in connection with the plan confirmation hearing. (Source: Satnews)
TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.