Sponsored by TCI International Inc.
27 May 21. Leonardo Australia teams up with ATTAR. The prime has entered into a strategic partnership with the Victoria-based research and testing services provider.
Advanced Technology Testing and Research (ATTAR) has been tapped by Leonardo Australia to deliver non-destructive testing (NDT) services at its facility in Fishermans Bend, Melbourne — a joint investment with the Commonwealth government.
Specifically, ATTAR has been tasked with delivering advanced NDT for key helicopter components under a recognised global standard, at Leonardo’s helicopter main gearbox Maintenance Repair and Overhaul Facility (MROF).
The work is expected to include support for both ADF projects and emergency services platforms.
“Our Fishermans Bend facility is a state-of-the-art centre built to service our Australia commitments,” Giorgio Mantegazza, the managing director of Leonardo Australia, said.
“The partnership with ATTAR strengthens our position in the Australian market and will provide greater service for Leonardo commercial, public and defence clients locally and in the regional market.”
ATTAR CEO Glenn D’Costa added, “This agreement is testament to the effort and investment made by both companies over the past 30 years in supporting the Australian Defence force.
“ATTAR is focused on delivering quality and excellence by supporting Leonardo in meeting its client commitments and regional service centre goals.
“The partnership is a showcase of how a leading global company in Leonardo has identified and partnered with an Australian technology business to provide a critical service.”
ATTAR has provided NDT training and bespoke inspection services for over 30 years to a global market, from its Scoresby’s headquarters in Victoria, Australia. (Source: Defence Connect)
27 May 21. Mercury Systems acquires Pentek.
* Expands scale and breadth of Company’s RFSoC, data recorder and software-defined radio capabilities
* Deepens market penetration in core radar and electronic warfare/SIGINT markets
* Complementary products accelerate growth through low-risk content expansion
* Transaction expected to be immediately accretive to adjusted EPS
Mercury Systems, Inc., (NASDAQ: MRCY, www.mrcy.com), a leader in trusted, secure mission-critical technologies for aerospace and defense, today announced that it has acquired Pentek Technologies, LLC and Pentek Systems, Inc. (collectively, “Pentek”). Based in Upper Saddle River, N.J., Pentek is a leading designer and manufacturer of ruggedized, high-performance, commercial off-the-shelf (“COTS”) software-defined radio and data acquisition boards, recording systems and subsystems for high-end commercial and defense applications.
Under the terms of the purchase agreement, Mercury acquired Pentek for an all-cash purchase price of $65.0m, subject to net working capital and net debt adjustments. A portion of the acquisition is expected to be treated as an asset sale for tax purposes. The acquisition and associated transaction expenses were funded through a combination of cash on hand and Mercury’s existing revolving credit facility. For Mercury’s fiscal year ending July 1, 2022, Pentek is expected to generate revenue of approximately $20m with profit margins in line with Mercury’s. The acquisition is expected to be immediately accretive to adjusted EPS.
“The acquisition of Pentek is an excellent fit for our market and low-risk content expansion strategy,” said Mark Aslett, Mercury’s president and chief executive officer. “Their capabilities add scale and breadth to Mercury’s existing mixed-signal product portfolio and deepen our penetration into our core radar, electronic warfare (EW), and signals intelligence markets. Like our previous acquisitions in the RF and microwave domain, the acquisition of Pentek doesn’t just provide important new capabilities for our customers; it also enables us to grow the size of our total addressable market. We are very pleased to welcome the Pentek team to Mercury,” Aslett concluded.
“I’m excited about the opportunity to bring new capabilities to Mercury’s impressive mix of pre-integrated subsystems in support of numerous aerospace and defense programs and platforms,” said Rodger Hosking, vice president, Pentek. “Our product-focused business model will provide a diverse portfolio of building blocks enabling low-risk content expansion at the module and subsystems levels. Further, there is an excellent fit strategically and culturally between the two businesses with a common focus on innovation that matters.”
26 May 21. QuEST Defense Systems & Solutions begins operations to provide engineering services to the US defense industry. QuEST Global, a global product engineering and lifecycle services company, announced the launch of its subsidiary, QuEST Defense Systems & Solutions (QDSS). Based out of Cincinnati, Ohio, QDSS will primarily focus on supporting the aerospace & defense industry in the United States and will operate independently in accordance with the US industrial security rules and a Special Security Agreement (SSA) with the US Government. The company will partner with several strategic players in the defense industry, helping them solve industry challenges by accelerating product design & development, supporting efficient production and supply chains, and providing product lifecycle solutions.
To support its customers in aerospace and defense, QDSS is planning to hire more than 1000 engineers in the next five years. The new entity’s core competencies cuts across the product life cycle and include design, high-fidelity engineering analysis in the areas of computational fluid dynamics, heat transfer analysis, and structural finite element analysis, software/firmware development and verification, supply chain, operations, and manufacturing engineering, Engineering Process Services (EPS), and aftermarket and sustainment engineering. In addition, the QDSS team brings a strong presence in digital technologies, including software application development, data analytics, cybersecurity, and implementation of the digital thread into the engineering process.
Built upon the legacy of more than two decades of expertise in providing product engineering services, QuEST Defense aims at becoming the trusted thinking partner for its customers by evaluating and delivering results that exceed customer expectations. Through long-lasting strategic partnerships and higher value solutions, QuEST is committed to supporting its customers and helping them maximize value for their contract spending.
“QDSS will bring to the defense industry the same focus on engineering excellence and efficiency that QuEST Global’s commercial customers enjoy. Our customers will benefit from reduced costs and on-time performance that would translate into improved cost, schedule, and performance in the systems delivered to our ultimate consumers – America’s fighting forces,” said Page Hoeper, Board Chairman – QuEST Defense Services and Solution.
Steve Gerber, President, and CEO of QuEST Defense, said, “With the launch of our US-based defense enterprise, we aim to continue providing our product engineering expertise to organizations in the aerospace and defense sector. Through our deep domain knowledge in the aerospace and defense industry, as well as our speed and flexibility in addressing difficult technical problems, QDSS is uniquely positioned to support our customers in the US Defense sector.”
Ajit Prabhu, Chairman & CEO, QuEST Global, said, “Over the past two decades, we have been at the forefront of the convergence of Mechanical, Electronics, Software, and Digital Engineering Innovations. As a trusted thinking partner to our customers, we have been enabling them to get more done with their available engineering budget and help them focus on executing core processes to develop next-generation products. With the launch of QuEST Defense Systems and Solutions, our US-based subsidiary, we will be able to partner with the US government contractors in the Defense sector and apply our proven track record and strong expertise to help them solve their engineering problems.”
About QuEST Global
For more than 20 years, QuEST Global has been a trusted global product engineering and lifecycle services partner to many of the world’s most recognized companies in the Aerospace & Defense, Automotive, Energy, Hi-Tech, Medical Devices, Rail, and Semiconductor industries. With a presence in 13 countries, 56 global delivery centers, and 11,250+ personnel, QuEST Global is at the forefront of the convergence of the mechanical, electronics, software, and digital engineering innovations to engineer solutions for a safer, cleaner, and sustainable world. QuEST Global’s deep domain knowledge and digital expertise help its clients accelerate product development and innovation cycles, create alternate revenue streams, enhance consumer experience and make manufacturing processes and operations more efficient. (Source: PR Newswire)
27 May 21. ZEISS Ventures Portfolio Startup “Scantinel Photonics” announces Series-A Financing Round with Participation of Scania Growth Capital. Former ZEISS LiDAR startup “Scantinel Photonics” has received further growth financing through Scania Growth Capital. The ZEISS Ventures portfolio company develops and produces FMCW LiDAR (Light Detection and Ranging) sensors for next-generation LiDAR systems for autonomous vehicles (AV).
“The LiDAR market is further consolidating and it’s becoming clearer which technologies and startups will eventually make it to mass production. Here at ZEISS, we are proud?that Scantinel?is among the ones that succeed in attracting new investors,” explains Gerrit Schulte, Head of ZEISS Ventures.
Advances in new sensor technologies, like LiDAR, are set to make cars safer and, eventually, autonomous. Scantinel offers unique FMCW LiDAR technology that delivers a new dimension of data to future vehicles. Scantinel’s LiDAR technology measures distances to objects in the plus-300-meter range with a high level of integration, solid state scanning and competitive pricing, which is key for autonomous vehicles.
“We see a great benefit from having Scania’s Venture Capital fund as an investor and are pleased to welcome Scania Growth Capital on board to support us as we continue to progress,” says Scantinel CTO & Co-founder, Andy Zott.
The series-A funding allows Scantinel Photonics to further develop and commercialize its leading FMCW (Frequency Modulated Continuous Wave) LiDAR technology. “The investment from Scania Growth Capital enables us to commercially implement this technology in close cooperation with our customers and technology partners,” says Scantinel Commercial Managing Director, Michael Richter.
“The future safety of autonomous vehicles is based on FMCW LiDAR sensor technology. We see Scantinel Photonics as the technology leader in its field and we are excited to be part of the growth journey,” says Christian Zeuchner, Partner at the management company Scania Growth Capital.
26 May 21. COHORT PLC (“Cohort” or “the Group”).
Cohort plc, the independent technology Group, today announces an unaudited trading update for its financial year ended 30 April 2021 and outlook for the current financial year.
*Trading performance for the year ended 30 April 2021 is in line with our expectations
*Net funds stronger than expected at c.£2m (30 April 2020: net debt of £4.7m; 31 October 2020: net debt of £6.1m)
*Record order intake of around £210m (2020: £124.4m)
*Closing order book of c.£240m (30 April 2020: £183.3m)
*The closing order book underpins £100m (63%) of the market revenue expectations for the year ended 30 April 2022 (2020: £83m, 60%)
*Acquisition of ELAC completed in the year represented a significant expansion, adding a profitable and growing sixth stand-alone business to the Cohort Group
*While the Board’s expectations for revenue growth for the current financial year are unchanged, given the expected mix of revenues and resulting margin impact, profit growth is expected to slow.
FY21 year-end update
Cohort’s performance was in line with our expectations for the year. This was despite lockdown restrictions in various countries affecting our ability to carry out work on customer premises and customers’ ability to witness acceptance tests and to place new orders.
During the year the Group completed the acquisition of ELAC SONAR GmbH (‘ELAC’), furthering our expansion in defence products and export markets, particularly the naval sector; its initial five-month contribution and integration were in line with our expectations.
Order intake (excluding the positive effect of acquiring ELAC) was stronger than the prior year, benefiting from a £25m contract awarded in March 2021 to SEA for the management and upgrade of in-service sonar equipment for the UK Ministry of Defence, and significant contract awards at Chess, MASS and MCL.
As a result of the record order intake, the Group’s closing order book grew substantially to c.£240m (2020: £183.3m), of which certain orders extend out to 2031. The strong growth in the Group’s order book has given us enhanced visibility across our businesses. This is particularly so at Chess, ELAC, MASS and SEA; however, the Group has seen some potential orders delayed over the course of the year, notably at EID, in part arising from the impact of the COVID-19 pandemic. Some of these orders are now expected to be secured in 2022 and 2023.
Outlook for FY22
Despite the Group’s strong closing order book, delays in the placing of certain orders with EID, representing around one third of EID’s revenue, is likely to negatively affect EID’s trading performance. While the overall performance of the Group’s other businesses means the Group’s revenue expectations are unchanged, leading to good revenue growth, the mix of revenues is expected to see a reduction in the Group’s overall margin and accordingly a lower rate of profit growth.
Notice of FY21 results
It is the Group’s current intention to issue its final results for the year ended 30 April 2021 in late July 2021.
Andrew Thomis, Chief Executive of Cohort, said, “Cohort had a strong year, performing in line with our expectations despite the challenges posed by the pandemic. Our financial position ended the year stronger than expected with positive net funds. Together with our banking facilities, this provides us with the flexibility to continue to invest in the business and consider acquisitions. Notwithstanding the disappointment of delays to certain EID orders, we continued to strengthen our order book with further contract wins, and we see good prospects for further significant new orders.”
25 May 21. Bluestone Announces Investment in CTI. CTI is an Open-Source Developer of Advanced Technology Solutions for Military and Security Applications
Bluestone Investment Partners, LP (“Bluestone”), a McLean, Virginia-based private equity firm, is pleased to announce the completion of an investment in CTI (the “Company”). CTI is a technology company that utilizes open and government open software and systems development to provide advanced, user-focused systems for command and control, electronic warfare, cyber-spectral operations and other complex military and security applications. CTI primarily performs this work in support of the Combatant Commands, Theater Special Operations Commands, Service Components, and Department of Defense Programs of Record across the services.
Dustan Hellwig, CEO of CTI said, “We are incredibly excited about partnering with Bluestone and their support will greatly enhance our ability to meet and exceed our strategic priorities. CTI and Bluestone are well aligned in vision and intent and I am certain that the expectations of both organizations will be exceeded as we move forward. I am proud of how CTI has been built and cannot wait to see what this next stage of growth and positive adaptation bring to our set of core values.”
“CTI is the very definition of a mission-focused company” said John Allen, Managing Partner of Bluestone. “The Company’s commitment to open architecture systems ensures that its military and intelligence community customers have access to the latest technology at a fraction of the costs relative to the traditional proprietary approach of large systems integrators. The acceptance of CTI’s open-source business model is evidenced by the explosive growth the Company has experienced.”
About CTI’s Solutions and Services
CTI’s solutions are the preferred standard in the mission space due to CTI’s unique application of agile methodologies, utility-driven design, and iterative, hands-on development with users. CTI is focused on building solutions on open-source and open government-owned platforms. This corporate philosophy ensures that industry proprietary software or hardware tools do not stand in the way of the right capabilities being brought to bear on the battlefield. Paired with our “Rapid” approach to solutions development, service delivery, and business execution, CTI continues to grow and thrive in the defense marketplace. CTI is headquartered in California, MD and has offices in San Diego; Camarillo; and Santa Barbara, CA as well as Denver, CO, Honolulu, HI, and Chantilly, VA.
24 May 21. Iridium Makes Strategic Investment in DDK Positioning, Provider of Enhanced GNSS Accuracy Solutions.
DDK Positioning Solutions Utilize the Iridium® Satellite Constellation to Deliver Five Centimeter GNSS Accuracy to Industrial IoT Users.
Iridium Communications Inc. (NASDAQ: IRDM) today announced that it has made a strategic investment in DDK Positioning (DDK), an Aberdeen, Scotland based provider of enhanced Global Navigation Satellite System (GNSS) accuracy solutions. DDK uses the Iridium® network to provide global precision positioning services that can augment GNSS constellations, including GPS and Galileo, to significantly enhance their accuracy for critical industrial applications. DDK is also developing similar services for other GNSS constellations, such as GLONASS and Beidou. Terms of the investment are not being disclosed.
Through the Iridium satellite network, DDK Positioning delivers high precision GPS accuracy of within 5 centimeters, while standard GPS accuracy is within 10 meters.
Standard positioning accuracy through a system like GPS is typically within 10 meters; however, by using the Iridium network, DDK’s enhanced GPS accuracy service brings incredibly precise positioning of five centimeters or less. This advanced level of accuracy is ideal for autonomous vehicles like UAVs, precision agriculture applications, offshore infrastructure projects such as windfarm construction, automotive applications like driverless cars, as well as a host of construction, mining, surveying and IoT use cases. Historically, there have been limited geostationary satellite provider options for this type of service, but they suffer from line-of-sight blockage issues and coverage limitations in and around Arctic and Antarctic regions.
Kevin Gaffney, CEO of DDK Positioning, said, “We are delighted to have embarked on this journey with such a strong and well-respected company as Iridium. This partnership is a perfect fit for DDK Positioning, with Iridium’s satellite communications network and our GNSS solution, we are in a position to deliver a truly unique service which is robust, resilient and secure.” Gaffney continued that, “The investment made by Iridium will also allow us to grow the company even further whilst expanding our service offering globally.”
According to a report published by the European Global Navigation Satellite Systems Agency, augmentation services like those offered by DDK will account for $76.5 bn (€65 bn) in global GNSS market revenue by 2029, while the global GNSS downstream market, including services delivered and hardware devices, is estimated to reach $382bn (€325bn).
“We are impressed with the team that DDK has put together and see great potential for this technology and how it takes advantage of the Iridium network,” said Iridium CEO, Matt Desch. “DDK’s enhanced positioning is a unique capability that adds a high-value solution on top of our existing portfolio of custom network services. Solutions from Iridium and DDK partners that are focused on precision agriculture, autonomous systems, maritime and infrastructure projects can now experience incredibly precise GNSS accuracy from anywhere on the planet.” (Source: PR Newswire)
24 May 21. Precision Aviation Group, Inc. (PAG) acquires Keystone Turbine Services, LLC. (KTS).
PAG expands its Maintenance, Repair and Overhaul (MRO) capabilities to include the Rolls-Royce M250 Engine.
Rob Ruck, former COO of KTS, commented, “KTS is very enthusiastic about joining PAG as they plan to further expand KTS’s product and service offerings, make significant investments towards new products, update processes, and introduce new repair capabilities. We have worked closely with PAG’s management team throughout this acquisition process and believe this partnership will provide significant benefits to our customers, vendors, and employees.”
Precision Aviation Group (PAG) is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With 12 Repair Stations, and over 450,000-square-feet of sales and service facilities in the United States, Canada, Australia, Singapore, and Brazil – PAG uses its distinct business units and customer-focused business model to serve aviation customers through two business functions – Aviation Supply Chain – and its trademarked Inventory Supported Maintenance, Repair and Overhaul (ISMRO®).
PAG provides MRO and Supply Chain Solutions for Fixed and Rotary-wing aircraft. PAG subsidiaries have MRO capabilities on over 32,000 products, including Accessories, Avionics, Dynamic Components, Engines, Fuel Accessories, Glass Panel Displays, Hydraulics, Instruments, Landing Gear, Starter/Generators, and Wheels/Brakes. (www.precisionaviationgroup.com ).
About Keystone Turbine Services (KTS)
With over 45 years of experience, KTS is Rolls-Royce’s second-largest certificated Authorized Maintenance Repair & Overhaul Center (AMROC) supporting all variants of the M250 Series engine, modules, accessories, and components. In addition, KTS is an FAA and EASA certificated Part 145 Repair Station and Honeywell Authorized Warranty and Repair Station (AWARS) for Overhaul, Repair and Testing of Rolls-Royce M250, Pratt & Whitney PT6A and PT6T Fuel Controls, Power Turbine Governors, and related accessories. (www.keystoneturbines.com). (Source: PR Newswire)
24 May 21. Struggling Liberty Steel announces sale of Yorkshire-based aerospace steel arm as part of restructuring plan.
- Liberty said the sale would allow it to focus more on its Rotherham operations
- Two plants in West Yorkshire and West Bromwich are also being put up for sale
- Liberty’s parent firm is currently under investigation by the Serious Fraud Office
Liberty Steel has said it is looking to sell some of its steel plants, including its prominent Stocksbridge plant, which employs about 750 staff.
It follows meetings over the weekend between boss Sanjay Gupta and Credit Suisse, which lost over £1bn when Liberty Steel’s main backer – Greensill Capital – collapsed in March.
The Swiss investment bank has initiated wind-up orders against the company but has now agreed to suspend court proceedings to allow the financially struggling Liberty to pursue the sale of its plants.
Liberty Steel will also sell its Pressing Solutions and Aluminium Technologies businesses
Liberty said offloading the companies would enable it to refinance and restructure the business and allow it to concentrate more on its Rotherham operations, which recycles old steel and employs around 660 people.
Its narrow strip mill in the village of Brinsworth, South Yorkshire, and Performance Steels plant in West Bromwich are also being put up for sale.
The Stocksbridge location provides special alloys and steel for the aerospace, defence and car industries, employing around 750 people, but has been hit by weaker demand in those sectors since the coronavirus pandemic started.
‘While being a unique, high-quality business servicing marquee customers in aerospace, auto and other highly engineered applications, it is not core,’ the firm said.
Liberty has also announced a formal process has begun to sell its Coventry-based Pressing Solutions business as well as its Aluminium Technologies division, the latter of whom operates the UK’s only remaining aluminium smelter.
It said that it was ‘working collaboratively with the main customers of these plants to find a sustainable home for these quality businesses, which are also non-core.’
Sanjeev Gupta’s metals empire is currently under investigation by the Serious Fraud Office
The company is part of Sanjeev Gupta’s family-owned metals empire, GFG Alliance, which is currently the subject of a probe by the Serious Fraud Office (SFO) concerning its links with supply chain finance firm Greensill Capital.
Greensill lent money to firms by buying their invoices at a discount, lending up to £3.6bn to Gupta’s businesses, but it collapsed in March when one of its main insurers declined to renew its cover, and GFG has been left grappling for new funding sources.
That investigation caused the company, which employs about 35,000 people worldwide, to lose a potential £236m cash injection from asset manager White Oak Global Advisors. GFG has denied any wrongdoing.
A spokesperson for the National Trade Union Steel Coordinating Committee, said: ‘Stocksbridge and its downstream plants are strategically important businesses vital to our country’s defence, energy and aerospace sectors.
‘The future for these businesses must be secured, and the trade unions will hold Sanjeev Gupta to his promise that none of our steel plants will close on his watch.
‘Liberty must act as a responsible seller and run a transparent sales process which fully engages the trade unions. We will expect to meet any potential buyer to scrutinise their plans and test their commitment to the workforce and our industry.
‘Whilst we are encouraged that Liberty and Credit Suisse appear to be making progress on the refinancing, we urgently need a solution to inject cash into the UK.’ (Source: Google/https://www.thisismoney.co.uk/)
25 May 21. Elbit Systems Ltd. (the “Company”) (NASDAQ and TASE: ESLT), the international high technology company, reported today its consolidated results for the quarter ended March 31, 2021. The Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company’s business results and trends. For a description of the Company’s non-GAAP definitions see page 4 below, “Non-GAAP financial data”. Unless otherwise stated, all financial data presented is US-GAAP financial data.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “Our financial results for 2021 have started well, with revenues up 4.4% over those of the first quarter last year. Sustained demand for our products and solutions from customers around the world led to a 9% increase in our order backlog, reaching a record $11.8 bn. This backlog and a healthy pipeline of opportunities provide us with good visibility and confidence in the Company’s prospects”.
Revenues in the first quarter of 2021 were $1,118.3m, as compared to $1,071.2m in the first quarter of 2020. Non-GAAP(*) gross profit amounted to $286.2m (25.6% of revenues) in the first quarter of 2021, as compared to $295.4m (27.6% of revenues) in the first quarter of 2020. GAAP gross profit in the first quarter of 2021 was $281.3m (25.2% of revenues), as compared to $289.4m (27.0% of revenues) in the first quarter of 2020.
Research and development expenses, net were $84.3m (7.5% of revenues) in the first quarter of 2021, as compared to $80.4m (7.5% of revenues) in the first quarter of 2020.
Marketing and selling expenses, net were $51.5m (4.6% of revenues) in the first quarter of 2021, as compared to $70.5m (6.6% of revenues) in the first quarter of 2020.
General and administrative expenses, net were $61.8m (5.5% of revenues) in the first quarter of 2021, as compared to $58.0m (5.4% of revenues) in the first quarter of 2020.
Non-GAAP(*) operating income was $92.9m (8.3% of revenues) in the first quarter of 2021, as compared to $90.4m (8.4% of revenues) in the first quarter of 2020. GAAP operating income in the first quarter of 2021 was $83.8m (7.5% of revenues), as compared to $80.4m (7.5% of revenues) in the first quarter of 2020.
Financial expenses, net were $0.2m in the first quarter of 2021, as compared to $12.5m in the first quarter of 2020. The lower level of financial expenses in the first quarter of 2021 was mainly a result of the weakening of the New Israeli Shekel versus the U.S. Dollar.
Other expenses, net were $3.2m in the first quarter of 2021, as compared to other income, net of $1.2m in the first quarter of 2020. Other expenses, net in the first quarter of 2021 were mainly due to the non-service cost components of pension plans. Other income in the first quarter of 2020 included income of approximately $3.2m as a result of revaluation of an investment in a subsidiary accounted for under the fair value method.
Taxes on income were $10.8m in the first quarter of 2021, as compared to $8.7m in the first quarter of 2020.
Equity in net earnings of affiliated companies and partnerships was $3.0m in the first quarter of 2021, as compared to $3.1m the first quarter of 2020.
Non-GAAP(*) net income attributable to the Company’s shareholders in the first quarter of 2021 was $76.2m (6.8% of revenues), as compared to $72.0m (6.7% of revenues) in the first quarter of 2020. GAAP net income attributable to the Company’s shareholders in the first quarter of 2021 was $72.5m (6.5% of revenues), as compared to $63.6m (5.9% of revenues) in the first quarter of 2020.
Non GAAP(*) diluted net earnings per share attributable to the Company’s shareholders were $1.72 for the first quarter of 2021, as compared to $1.63 for the first quarter of 2020. GAAP diluted earnings per share attributable to the Company’s shareholders in the first quarter of 2021 were $1.64, as compared to $1.44 in the first quarter of 2020.
The Company’s backlog of orders as of March 31, 2021 totaled $11.8bn, as compared to $10.8bn as of March 31, 2020. Approximately 68% of the current backlog is attributable to orders from outside Israel. Approximately 59% of the current backlog is scheduled to be performed during 2021 and 2022.
Operating cash flow used in the three months ended March 31, 2021 was $13.1m, as compared to $9.9m for the three months ended March 31, 2020.
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 March 24, 2021, 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 and the first quarter of 2021 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. We believe that as of March 31, 2021, 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 quarter ended March 31, 2021, 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 May 21. Collins to consolidate Indian operations. Aerospace company plans to make investments to expand its engineering and manufacturing footprint in India. Collins Aerospace sees opportunities to collaborate with T-Hub and explore increased tie-ups with startups.
Hyderabad: Raytheon Technologies subsidiary, Collins Aerospace, which provides technologically advanced and intelligent solutions for the global aerospace and defence industries, is keen to invest in developing technologies to provide a touchless travel experience, on the ground at the airport and onboard aircraft. The company plans significant investment and capex to consolidate and expand its engineering and manufacturing footprint in India.
The company will also continue to grow capabilities in flight deck avionics, airport solutions, and leverage augmented reality (AR) and virtual reality (VR) capabilities for training solutions. The company claims to be the largest exporter of aerospace products from India. North America and Europe continue to be the core markets, globally.
Savyasachi Srinivas, executive director, Engineering, Collins Aerospace, told Telangana Today, in an exclusive interview, “Collins Aerospace’ products and capabilities across strategic business units include aftermarket services, customer and account management, engineering and technology, operations and quality, and strategic development. We provide employment to over 5,500 employees across our four India locations, and we are looking to move into a new facility, located in Bengaluru’s new Aerospace Park.”
“Collins’ FAA and the DGCA partnership enabled us to become one of the first Indian entities to domestically produce and export an aviation product to the US. Some of the technologies of focus include artificial intelligence (AI), machine learning (ML), internet of things (IoT), intelligent systems, advanced materials, additive manufacturing among others,” he added.
Collins’ sites in India serve a substantial customer base, including local and international governments, aerospace original equipment manufacturers (OEMs) and defence contractors. Some of the customers that are supported by Collins in India include Boeing, Airbus, Thales, Bombardier, Gulfstream, Sukhoi, Embraer, Rolls-Royce and Pratt & Whitney.
The company’s operations in India began in 1997 when a manufacturing facility was established in Bengaluru. Since that time, the company has continued to expand its footprint in India, with the India Design Center in Hyderabad and the Global Engineering Center in Bengaluru, he added.
Collins Aerospace’s Hyderabad facility provides R&D that supports avionics, aerostructures, power & controls, mechanical systems, mission systems, and interiors, while the Bengaluru facility manufactures interiors, mechanical systems, avionics and mission systems, catering to the global customers and supply chain.
Savyasachi added, “As of today, the company has a team of about 200 engineers engaged in research and development. Collins continues to engage in the design of more intelligent aircraft with reduced carbon footprint, increased safety & reliability, reduced aircraft on ground (AoG) through prognostic health management, maintenance, repair and overhaul (MRO) using latest technologies such as AI/ML, AR/VR solutions to reduce the operational cost both in-ground and air segments.”
The sites in India provide engineering, system design, and product development services that enable shorter time to market, lower programme and project life-cycle cost and innovative solutions.
“Together, the India team has produced over 235 patents, which cover inventions across all Collins strategic business units (SBUs) and disciplines. This includes the designing, developing, and qualifying of the power door opening system for the A320neo and Bombardier C-series, at the Bengaluru facility,” he informed.
Savyasachi added, “We will continue to work with academia and the startup ecosystem around Hyderabad. We have collaborated with premier Indian research institutes such as the Indian Institute of Science (IISc), Indian Institute of Information Technology (IIIT), BITS Pilani, public sector units and government research agencies and a few startups in Hyderabad and Bengaluru. We see significant opportunities to collaborate with T-hub and explore increased tie-ups with startups.” (Source: Google/https://telanganatoday.com/)
21 May 21. Vaya Space to Create Brazilian Subsidiary. American space tech company Vaya Space, a hybrid rocket propulsion and orbital launch services provider, announced that it will create a Brazilian subsidiary as part of their strategic plan to expand operations into South America. Vaya Space anticipates creating 200 direct jobs in Brazil over the next two years, and plans an initial manufacturing footprint of approximately 10,000 square meters.
Jack Blood, Vaya Space Vice President, commented on the favorable business climate that exists in Brazil, government policy to facilitate commercial space efforts, and the opportunity for public-private partnering.
“The US-Brazil Technological Safeguards Agreement (TSA) protects sensitive space technology exports to Brazil for launch from the Alcântara Launch Center. This ensures compliance with US export control requirements, and allows us to take advantage of the excellent location of this spaceport, which can support a wide range of launch azimuths, from equatorial to polar,” stated Blood. “The Ministry of Science, Technology and Innovation (MCTI) under the leadership of Marcos Pontes has been a strong advocate of bringing commercial launch business to Brazil. Other considerations included the ability to generate turn-key solutions with the National Institute for Space Research (INPE), which has robust capabilities to support development of small satellite technologies, particularly earth observation and space and atmospheric sciences; along with Brazilian Space Agency (AEB) alignment with FAA best practices. Taken as a whole, all these factors create an excellent environment in Brazil for commercial space operations, and for Brazil to assume a leadership role of the space industry in South America.”
The final location for Vaya Space manufacturing operations within Brazil remains in negotiation, with several areas vying for consideration. Previously, a Memorandum of Understanding (MOU) was signed with the Investment and Trade Promotion Agency (INDI) for the state of Minas Gerais, Brazil. Vaya Space is also considering locations in the aerospace cluster located within the state of São Paulo, in the city of São José dos Campos, which according to a 2020 ranking by the Financial Times Magazine, is the third best city in the world for aerospace sector strategic investment.
Vaya Space President Rob Fabian summarized, “We are excited about standing-up our Brazilian subsidiary. We look forward to partnering with Brazilian companies; developing local, regional, and global supply chains, supporting a strong and diversified customer base, and contributing to the creation of a vibrant commercial space economy.”
About Vaya Space: Vaya Space is a hybrid rocket propulsion and SmallSat launch company leveraging advances in additive manufacturing to redefine the cost, performance, and safety of space access. With a build, integrate, and launch-ready cycle of less than 30 days, Vaya Space is capable of launching payloads greater than 1,000 kg into Low Earth Orbit (LEO), and payloads greater than 600 kg into Sun Synchronous Orbit (SSO). Positioned to serve the global market, Vaya Space is now accepting launch reservations for 2023. (Source: BUSINESS WIRE)
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.