Sponsored by TCI International Inc.
04 Nov 22. HUBER+SUHNER signed the contract to acquire Phoenix Dynamics on 29 October 2022. HUBER+SUHNER, a globally active Swiss company with its headquarters in Herisau and Pfäffikon (ZH), develops and produces components and system solutions for electrical and optical connectivity. Leveraging its expertise in radio frequency, fiber optics and low frequency, the company serves the three main markets of Industry, Communication and Transportation. More information about HUBER+SUHNER can be found on www.hubersuhner.com
The combined skills and expertise of Phoenix Dynamics and HUBER+SUHNER will open up new prospects and opportunities. Under the new name of HUBER+SUHNER Phoenix Dynamics, we will leverage our engineered solutions and experience on a global scale and throughout many industries, taking advantage of the global presence of HUBER+SUHNER.
Extended range of products and excellent customer service
Moving forward, customers will benefit from enhanced technological expertise and a broader product range in fiber optics, radio frequency and low frequency. Utilising synergies within the global sales organisations we will continue to provide our customers with excellent service.
Our relationships with our customers will remain unchanged following the acquisition, and your current contact person will continue to be at your disposal. As of 1st November 2022, David Grocott, Phoenix Dynamics former COO and CTO, will take over the role of Managing Director of HUBER+SUHNER Phoenix Dynamics.
Graeme Boull, former CEO of Phoenix Dynamics, will lend his support during the first weeks of the transition and will subsequently move into his well-deserved retirement. The entire Phoenix Dynamics team thanks Graeme for his huge contributions in building up the company over the past 25 years.
(Source: MakeUK DEFENCE)
04 Nov 22. Secure-IC acquires Silex Insight’s security business to accelerate its chip-to-cloud plan and develop the next-generation of embedded cybersecurity solutions. Secure-IC, the rising leader, and the unique global provider of end-to-end cybersecurity solutions for embedded systems and connected objects, announces today the acquisition of Silex Insight’s security business. Silex Insight is a leading provider for flexible and scalable security IP cores solutions which perfectly complement Secure-IC’s portfolio. All the current and new customers will benefit from this acquisition as they will always retain top-notch security and performance. As of today, Secure-IC will now offer the largest portfolio of embedded security solutions to the market.
The security landscape is rapidly ever-changing, and IoT developers face increasing pressure to step up device security and meet evolving regulatory requirements. This acquisition will simplify development, accelerate time-to-market, and help device makers and OEMs to make products future-proof when it comes to security. All customers will be able to take advantage of the most advanced integrated security platform available today, including the ever-growing needs of lifecycle management.
Secure-IC has been providing the electronic and semiconductor industries, for over a decade, with its protection technologies, namely the SecuryzrTM integrated Security Services Platform (iSSP), for various market applications. This enables its customers and partners to secure and manage their fleet of devices from the cloud and be provided with added-value security services, as well as compliance to standards. Their solutions are embedded into hundreds of ms of electronic chips for smartphones, computers, automobiles, smart meters, cloud servers and more.
Silex Insight has successfully delivered security IPs to the market for over 30 years. Their highly scalable and flexible silicon proven security IPs are all turn-key solutions and compliant with common industry standards (NIST and others). The security platforms and solutions include flexible and high-performance crypto engines which are easy to integrate and provides a complete security solution for all platforms. As part of the integration of Silex Insight’s security business within Secure-IC, Silex Insight’s current operations in Belgium will remain in place and will even be further expanded.
“Secure-IC continues to invest heavily in security and by leveraging Silex Insight’s knowledge, solutions, and people, we know we retain best-in-class security for our customers. We expect to help them achieve market success with a complete embedded security offer, including lifecycle management”, said Hassan Triqui, CEO of Secure-IC. “The combination of Secure-IC and Silex Insight is going to bring a unique high assurance security level to the market. Our mission is to provide our customers with solutions which perfectly fit their requirements, and offer outstanding quality, so that it is easy to implement right through to tape-out and beyond”.
“By handing over our security business to Secure-IC, we are assured that the customers are in the best hands to help them design devices with the highest security standards. At the same time customers will be able to design solutions that are scalable and can be updated in the field”, said Michel Van Maercke, CEO of Silex Insight.
This combination of Secure-IC and Silex Insight’s know-how marks the start of an incredibly exciting new era for embedded security solutions, creating a global leader, ready to set the standards for current and future challenges, such as the post-quantum cryptography revolution.
With presence and customers across 5 continents, Secure-IC is the rising leader and the only global provider of end-to-end cybersecurity solutions for embedded systems and connected objects.
Driven by a unique approach called PESC (Protect, Evaluate, Service & Certify), Secure-IC positions itself as a partner to support its clients throughout and beyond the IC design process. Relying on innovation and research activities, Secure-IC provides Silicon-proven and cutting-edge protection technologies, integrated Secure Elements and security evaluation platforms to reach compliance with the highest level of certification for different markets (such as automotive, AIoT, defense, payments & transactions, memory & storage, server & cloud).
03 Nov 22. Italy’s Leonardo raises FY orders guidance after strong nine months. Italy’s state-controlled defence group Leonardo (LDOF.MI) on Thursday raised its full-year guidance after reporting a sizeable jump in orders during January-September.
In that period, new orders rose by 26.8% year-on-year to 11.719bn euros ($11.42bn), with a backlog equal to about 2.5 years of production.
Meanwhile, earnings before interest, taxes and amortisation (EBITA) in the period to end-September were up 2.7% to 619m euros.
Leonardo upped its guidance for orders in the full year to more than 16 bn euros, against a previous estimate of around 15bn euros.
Guidance for revenues was confirmed at between 14.4-15bn euros and at 1.17-1.22bn euros for EBITA, with both excluding the contribution of Global Enterprise Solutions for two months after the asset’s disposal became effective on Aug. 1.
Full-year forecast for free cash flow was raised slightly to around 500m euros from around 470m euros, again excluding the sold asset.
“The increased demand for defence and security linked to the geopolitical scenario generates positive prospects for the defence sector,” Leonardo said in a statement, in an apparent reference to Ukraine and other global flashpoints.
CEO Alessandro Profumo said the company was continuing “to manage the impact of pressures from inflation, supply chain and other challenges of the external environment”.
Leonardo’s defence and governmental business “remains strong,” he added, while its aerostructures unit was said to be in a “gradual recovery”.
In July, Leonardo landed a major deal by signing a contract with the Polish defence ministry worth 8.25bn zlotys ($1.71bn) for the supply of 32 AW149 helicopters. ($1 = 4.8135 zlotys) (Source: Reuters)
03 Nov 22. Global governmental Space Exploration investments to reach $31bn by 2031 as public and private players reach for the Moon. The latest edition of the Prospects for Space Exploration report from Euroconsult predicts global governmental investments in space exploration will reach $31bn within the next decade. The report identifies key budget drivers that include the continuation of increased funding in transportation, orbital infrastructure, and in lunar exploration. The public and private focus on establishing a sustainable lunar presence, while also maintaining a sustained LEO human presence, will also beat the heart of space exploration roadmaps in the years to come.
Since the 1950s, the space exploration market has been characterized by a small number of large spending nations as they raced to establish new boundaries for science, technology, innovation, and international prestige. However, leading space consultancy and market intelligence firm Euroconsult suggests that a major transition is taking place, as collaboration between different governments, as well as between public and private organizations, provides a further boost to the increasing investments from established players like the U.S.
The company predicts that the expansion of international involvement in the space exploration market will result in a new era, in which government investment levels are expected to reach up to $31bn by 2031, despite ongoing geopolitical issues.
Euroconsult’s latest ‘Prospects for Space Exploration’ report found that more countries than ever are joining the space exploration market. Newcomers or recent players include Australia and the U.A.E., with overall government investments towards space exploration in 2022 at 59% higher than 10 years ago.
Space transportation programs are expected to remain the most funded application for the next decade, reaching $10.7bn by 2031. This is in part due to the support needed for the development of the human lunar landers and the SLS/Orion as part of the Artemis program. To this end, the Artemis accords have been signed by a total of 21 nations, signaling wide-scale international collaboration and a new wave of global investments which will result in lucrative partnership agreements with private sector companies that are expected to grow in the coming years.
Meanwhile, China is developing the International Lunar Research Station in partnership with Russia with the project expected to tie up an important portion of the budget for Chinese space activity for the foreseeable future. When combined with transportation applications, orbital infrastructure projects currently represent over 58% of the total space exploration budget.
Miguel Ouellette, Principal Advisor stated, “Our forecasts indicate that lunar and cis-lunar activities will provide a major focal point to catalyze investment in the space exploration market over the coming years. In fact, moon exploration will act as a ‘steppingstone’ towards future Mars endeavors, and government investments in this application are projected to drastically increase by over 4.6x in the next decade when compared to the previous one.”
He added, “Private companies are expected to play an increasingly important role in these developments, with as many as 60 commercial lunar missions to launch within the next decade. However, the role of governments will still remain crucial in order to support the industry, especially as a customer of commercial solutions, as well as in terms of sharing costs, risks, and responsibilities for space exploration endeavors.”
For a deeper dive into the company’s insights on the next decade of space exploration, including all of the key drivers and trends, read Euroconsult’s ‘Prospects for Space Exploration’ report available at https://digital-platform.euroconsult-ec.com/product/prospects-for-space-exploration, where a free extract is also available for download.
The Euroconsult team has been involved in a series of space exploration studies for governments and private organizations, including providing strategic support to space agencies in defining investment strategies in lunar exploration, conducting international benchmarks and long-term scenario analyses, due diligence exercises on private space exploration companies, and producing insight for a Mars sample return mission. Most recently, they have undertaken a 12-month study assessing the socio-economic impacts of ESA’s space exploration program, Terrae Novae. Euroconsult has also conducted a two-year study for the CSA to identify possible Canadian contributions to future international lunar surface exploration initiatives.
04 Nov 22. RHEINMETALL And 4iG Set Up JV In Hungary. The joint venture will provide IT services for integrated technology group Rheinmetall.
- Rheinmetall AG and 4iG PLC have set up an IT joint venture in Budapest, the latest step in their strategic cooperation.
- 4iG holds a 51% stake in “Rheinmetall 4iG Digital Services LLC” (R4), with Rheinmetall holding the remaining 49% share.
- R4 will provide IT services to Rheinmetall’s local and global subsidiaries starting in 2023, and potentially to third parties as well.
- The new joint venture benefits both parties: it reinforces Rheinmetall’s IT capabilities, while giving 4iG greater access to the global market for IT services.
Rheinmetall and 4iG have been cooperating closely ever since the start of 2022. Their technological and regional strengths and mutual ambitions for growth make them a perfect match. Rheinmetall is a leading player in the defence industry, where the need for IT is continuously rising, and has a strong presence in Western Europe – representing two potential growth areas for 4iG. For its part, 4iG is a leading player in the IT industry and has a strong footprint in Central Eastern Europe – two important growth areas for Rheinmetall. The strategic partnership between the two companies is thus a logical step and has now reached another important milestone. According to the agreement announced today, Rheinmetall and 4iG have set up an IT joint venture in Budapest. 4iG holds 51% stake in the new company, with the remaining 49% held by Rheinmetall. The initial mission of Rheinmetall 4iG Digital Services LLC (R4) is to provide project– and operations-related IT services to Rheinmetall’s local subsidiaries in Hungary and worldwide. Based on business requirements and opportunities, the new joint venture plans to progressively expand the scope of its services for internal and external customers alike.
“International expansion is one of the cornerstones of 4iG’s business strategy, and it drives the Group’s development and our business decisions. The IT joint venture established by Rheinmetall and 4iG is a huge step forward, because we can strengthen not only our position in the field of defence digital services, but also, after the cooperation in Hungary, 4iG will become a global partner of Rheinmetall.” – said Gellért Jászai, Chairman of the 4iG Group.
“Creating this joint venture not only demonstrates our commitment to Hungary”, declares Armin Papperger, Chairman of the Executive Board of Rheinmetall AG. “It also represents an important contribution to Rheinmetall’s capabilities in the field of digital technologies. We see plenty of upside potential in cooperating with 4iG, particularly in this joint venture. We are committed to strong and fruitful cooperation, which is clearly a win-win situation for 4iG and Rheinmetall.”
Notes for editors:
Budapest-based 4iG Plc is Hungary’s leading IT systems integrator, with a significant share in domestic and regional telecommunications markets. The company has been active in the market for innovative industry-independent IT technologies for over 27 years, during which it has steadily expanded its services and portfolio to meet the changing needs and demands of the ICT market. 4iG employs more than 6,000 people. A broad-spectrum solutions provider, it is a leader in information technology, telecommunications, satellite telecommunications and telecommunications infrastructure development. The company, listed on the Budapest Stock Exchange, aims to build a dominant market position in a wide range of info-communication services in Hungary, eastern Central Europe and the western Balkans. www.4ig.hu
Rheinmetall AG, a listed company with more than 130 years of experience as an integrated technology group, is a strong, internationally successful company. Headquartered in Düsseldorf, Germany, the group has over 25,000 employees worldwide. With an innovative range of products and services and 210 subsidiaries, Rheinmetall is present in 52 countries on six continents. A proven partner to the armed forces of numerous countries around the world, Rheinmetall also has a strong civil technology presence, developing and manufacturing products for the automotive industry and other industrial sectors. For military customers, the group develops and produces combat vehicles, advanced defence systems, IT solutions, weapons and ammunition. Rheinmetall AG’s sales in 2021 exceeded €5.8bn. www.rheinmetall.com
03 Nov 22. Maxar Acquires AI and Software Engineering Company Wovenware to Bolster Machine Learning and 3D Data Production Capabilities.
Maxar Technologies (NYSE:MAXR) (TSX:MAXR), provider of comprehensive space solutions and secure, precise, geospatial intelligence, today announced that it has completed the acquisition of AI and software development company Wovenware. This acquisition significantly adds to Maxar’s software engineering and AI capabilities and talent.
Founded in Puerto Rico in 2003, Wovenware has roughly 150 employees specializing in software development, service design, artificial intelligence and geospatial production. The company will become one of Maxar’s software development and AI/machine learning (ML) centers of excellence, with its software delivery experts partnering closely with other Maxar teams to develop new solutions for customers.
“In today’s everchanging world, our customers are continuously looking for ways to access our industry-leading products faster and more efficiently—AI and machine learning is critical to accelerating growth,” said Dan Jablonsky, Maxar President and Chief Executive Officer. “Wovenware’s incredibly talented team of software engineers complements Maxar’s product development and delivery talent. Our teams already have a track record of working together to deliver customer solutions, and we are excited to work even more closely together to grow and expand our installed customer base.”
Since 2017, Wovenware has worked closely with Maxar on numerous customer delivery and internal software engineering initiatives, including for Maxar’s global imagery basemaps, Precision3D applications and more.
Specifically, Wovenware’s AI/ML and Data Production talent has supported Maxar projects ranging from UI design to full-stack delivery, producing new 3D terrain analytics tools, thousands of ML training data sets and dozens of automated object detection models. Wovenware’s co-founders, Christian González and Carlos Meléndez, will continue to oversee day-to-day operations of the company.
“Wovenware is excited to join the Maxar team. Having worked together for five years, we’ve experienced first-hand the synergies between our companies and the shared commitment to technology innovation and customer and employee success,” said Christian González, co-founder of Wovenware.
“Becoming one of Maxar’s software development and AI/ML centers of excellence enables us to accelerate our commitment to expand our employee footprint and bring the most exciting innovation and technology projects to Puerto Rico,” added Carlos Meléndez, co-founder of Wovenware.
Wovenware will operate as a wholly owned subsidiary of Maxar, which will continue to invest in Wovenware’s growth in Puerto Rico. Maxar will provide additional resources to help the company draw from the best engineering talent across the island as well as to support its efforts to bring more talent from the mainland and elsewhere back to the island. (Source: BUSINESS WIRE)
03 Nov 22. Angeles Equity Partners Portfolio Company RōBEX Acquires Vantage Corporation. RōBEX LLC (“RōBEX”), an innovative provider of robotics and industrial automation solutions, today announced the acquisition of Vantage Corporation (“Vantage”), a Michigan-based industrial robotics manufacturer and integrator. The transaction is the first strategic acquisition by RōBEX since it was acquired by Angeles Equity Partners, a private investment firm focused on value creation through operational transformation. Through this strategic acquisition, RōBEX is strengthening its position as the market leader in diverse automation, inspection, assembly, and systems integration within the automotive, aerospace, biotech, and pharmaceutical industries.
“Vantage has an outstanding reputation in the automation field for its innovative technology and a world-class team. They are highly regarded for their deep technical expertise in robotic automation systems integration,” said Craig Francisco, President & COO of RōBEX. “Vantage’s highly technical, passionate, and well-trained employees will add to the high-performance culture at RōBEX. Vantage and RōBEX share many of the same values and approaches to innovative products and services. We are proud to welcome Vantage to the RōBEX platform. The combination will make us more competitive and help drive significant growth.”
Vantage Chief Executive Officer and Founder Tim White will remain in his position as CEO throughout the integration process. The terms of the acquisition were not disclosed.
“Vantage began its journey primarily serving the automotive industry in 2003. Today, our robotic automation solutions can be found in facilities across a variety of industries, including aerospace, medical, and plastics manufacturing. We are looking forward to our next chapter as part of the RōBEX team,” said Vantage CEO Tim White.
The acquisition of Vantage is consistent with RōBEX’s strategy to expand in key global markets, including Mexico, Canada, and China, with in-country technical field and engineering personnel that can support clients’ needs. Vantage’s flagship 66,000-square-foot manufacturing campus, located in Livonia, Michigan, will continue to operate and deliver world-class products and services to customers. When combined with RōBEX’s 55,000-square-foot manufacturing facility in Tipton, Indiana, the newly merged company offers significant capacity to customers.
“Angeles is excited to facilitate this deal. The combined power of these two companies presents a significant opportunity to become the leader in the automation systems integration space,” said Angeles Equity Partners Managing Director Sam Heischuber. “With an increased demand for industrial automation and robotics solutions, driven largely by the global labor shortage, the outlook is strong for this sector.”
For more information, visit https://robex.us/.
RōBEX is a leading robotic automation and materials handling integrator founded in 2015 in Perrysburg, Ohio. The company uses its uncommon experience and expertise to bring value to customers through robotic automation solutions that improve productivity and safety. RōBEX is an Angeles Equity Partners portfolio company. For more information, go to https://robex.us/.
Over the past 19 years, Vantage team has delivered seamless robotic automation manufacturing, inspection, assembly, and systems integration. Vantage’s combination of engineering expertise, technical capability, market competitiveness, and peerless after-sales support services allow enables manufacturers to automate and launch new programs with confidence. Vantage delivers innovative technologies that support manufacturers in delivering products on time, to spec, and within budget. For more information, visit https://vantage-corp.com/.
About Angeles Equity Partners
Angeles Equity Partners, LLC is a private equity firm that invests in companies across a wide range of sectors and specifically targets businesses that can directly benefit from the firm’s strategic, operational, and M&A capabilities. The Angeles skill set drives the firm’s investment philosophy and can help businesses reach their full potential. Learn more online at www.angelesequity.com. (Source: BUSINESS WIRE)
03 Nov 22. Rolls-Royce sticks to guidance despite inflation headwinds.
- New CEO takes over at the end of the year
- Sticks to forecasts for revenue growth, profit margin, cash flow
- Shares down 5%
British engineering company Rolls-Royce (RR.L) stuck to its forecasts for 2022 despite headwinds from the rising costs of energy and raw materials and supply chain snags, which pose ongoing challenges for its new boss.
Warren East, overseeing his last trading update before he retires after seven years, said that the company was continuing to recover from the coronavirus pandemic, and that cuts made at the time had positioned it well for the uncertain economic environment.
He hands over to former BP executive Tufan Erginbilgic at the end of the year, who must wrestle with Rolls’s COVID-19 debts of 4 bn pounds ($4.50 bn) and a civil aerospace unit which is still being affected by travel restrictions in China.
Shares in Rolls-Royce fell 5% in mid-morning deals. It said it was targeting low-to-mid-single digit underlying revenue growth, a profit margin broadly in line with last year’s 3.8% level and modestly positive cash flow.
The stock had risen 10% in the week ahead of the update but is down 36% this year.
Lansdown analyst Sophie Lund-Yates. “The trouble is, and which has been the case since the pandemic struck, the group’s grappling against a multitude of headwinds from external forces.”
Like all manufacturers, Rolls-Royce, whose engines power the Airbus A350 and Boeing 787, is also facing higher input costs. In Britain, it said it agreed a 6.5% wage increase and additional 1,500 pound payment for staff represented by unions.
Rolls said it aims to recover the higher costs through efficiency gains and higher prices and that higher stock levels, as a result of supply chain pressures, would not affect its ability to meet forecasts.
Aero-engine maker General Electric (GE.N) has also noted supply chain strains, specifically in obtaining castings from suppliers, while planemaker Airbus (AIR.PA) has said that the global supply chain remains a “very degraded environment” following the pandemic.($1 = 0.8884 pounds) (Source: Reuters)
04 Nov 22. Elbit buys sensor firm Logos Technologies. Elbit Systems of America, the US subsidiary of Israel’s Elbit Systems, has enhanced its surveillance capabilities by acquiring Logos Technologies, which makes wide-area motion imagery (WAMI) sensors for manned and unmanned aircraft, the buyer announced on 2 November. Logos offers several products, including BlackKite, which is designed to monitor a city-sized area, enabling military forces to track a high-value target’s movements and develop a detailed “pattern-of-life” report.
Logos president John Marion, who will continue to lead the Fairfax, Virginia-based business, said that joining Elbit “gives us access to new resources, connections, and contracts, giving our solutions greater reach”.
Logos, which employs about 60 people, will become a wholly owned subsidiary of De Leon Springs, Florida-based naval electronic systems producer Sparton, which Elbit Systems of America acquired for USD380 m in April 2021. Financial terms of the Logos transaction were not disclosed.
The Logos acquisition will boost Elbit Systems of America’s workforce to about 3,500 people. (Source: Janes)
02 Nov 22. Curtiss-Wright Reports Third Quarter 2022 Financial Results and Updates Full-Year 2022 Guidance.
Curtiss-Wright Corporation (NYSE: CW) reports financial results for the third quarter ended September 30, 2022.
“Overall, Curtiss-Wright remains in a strong position to deliver significant long-term value for our shareholders and on track to achieve the financial targets that we set out at our 2021 Investor Day.”
Third Quarter 2022 Highlights:
- Reported sales of $631m, operating income of $108m, operating margin of 17.1%, and diluted earnings per share (EPS) of $1.91;
- Adjusted operating income of $114m, up 6%;
- Adjusted operating margin of 18.2%, up 70 basis points;
- Adjusted diluted EPS of $2.07, up 10%;
- Reported free cash flow (FCF) of $86m;
- New orders of $818m, up 32%, reflecting strong Aerospace & Defense (A&D) and Commercial market demand, and book-to-bill of 1.30; and
- Backlog of $2.6bn, up 19% year-to-date.
“Curtiss-Wright delivered solid third quarter results, despite continued supply chain challenges, as the strength of our combined portfolio, coupled with the benefits of our company-wide operational excellence initiatives, enabled us to generate stronger than expected profitability with 70 basis points in operating margin expansion and double-digit EPS growth,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. “Sales in our Commercial markets increased 9% during the quarter, led by double-digit growth in our general industrial and process markets, while sales for Aerospace & Defense markets were relatively flat. We once again experienced robust order activity, as bookings increased 32% year over year, and both bookings and backlog grew 19% on a year-to-date basis. This was driven by strong demand across the majority of our defense and commercial markets, including record level quarterly orders within our Defense Electronics segment.”
Full-Year 2022 Financial Outlook:
- Sales revised to new range of 2% to 4% growth (previously 4% to 6%), including 1% to 3% growth in our A&D markets and 6% to 8% growth in our Commercial markets;
- Adjusted operating income revised to new range of 3% to 6% growth (previously 5% to 7%), reflecting the timing of revenues within our Defense Electronics segment, partially offset by stronger profitability within our Aerospace & Industrial segment;
- Maintained Adjusted operating margin range of 17.1% to 17.3%, up 10 to 30 basis points compared with the prior year;
- Adjusted diluted EPS revised to new range of $8.05 to $8.20 (previously $8.10 to $8.30), which continues to reflect double-digit growth; and
- Adjusted free cash flow revised to a new range of $275 to $315m (previously $345 to $365m), reflecting the timing of defense revenues, as well as the expected delay in receipt of a significant cash payment upon the final delivery of our CAP1000 reactor coolant pumps to China, which has likely pushed to 2023, to align with our customer’s project schedule.
“Although underlying demand across the portfolio remains strong, we are revising our full-year 2022 guidance to reflect the ongoing global supply chain disruption which continues to impact the timing of production, deliveries and free cash flow within our Defense Electronics segment. We have taken numerous actions, including consistent engagement with our supply base that supported our prior expectations of a strong second half, however, conditions are not easing as quickly as anticipated. While we are confident these dynamics will get resolved over time, the challenges are delaying the recognition of our strong order book.”
“Looking forward, the business fundamentals in the Defense Electronics segment remain quite strong, driven by record bookings, strong profitability and favorable long-term secular tailwinds. In addition, we remain focused on mitigating the impact of other macro-level headwinds through our ongoing operational excellence initiatives. As a result, we are able to maintain our previous operating margin guidance despite the topline reset.”
“Overall, Curtiss-Wright remains in a strong position to deliver significant long-term value for our shareholders and on track to achieve the financial targets that we set out at our 2021 Investor Day.”
Curtiss-Wright and X-energy Sign Preferred Strategic Supplier Agreement:
- On September 15, 2022, the Company signed a preferred strategic supplier agreement to advance the design and deployment of X-energy’s Xe-100 advanced Small Modular Reactor (SMR);
- Under the agreement, Curtiss-Wright has been selected as a preferred supplier to develop and provide three of the most critical systems for the Nuclear Steam Supply System; and
- Curtiss-Wright estimates that its content for these three systems will be in excess of $100m in revenue per four-unit (320 MW) plant.
Poland Selects Westinghouse AP1000 Technology for its First Nuclear Power Plant:
- Earlier in 2022, Curtiss-Wright secured Westinghouse’s commitment to our reactor coolant pump (RCP) technology in future AP1000 power plants, including Eastern Europe;
- Westinghouse’s initial partnership with Poland covers the first three of potentially six AP1000 reactors, which are expected to begin producing electricity in 2033; and
- The agreement provides an opportunity for Curtiss-Wright to receive new RCP orders within the next three to five years.
Third Quarter 2022 Operating Results
- Adjusted sales of $631m increased 3% compared with the prior year, and included a 1% headwind from unfavorable foreign currency translation;
- Total A&D market sales were flat, while total Commercial market sales increased 9%;
- In our A&D markets, our results reflected the contribution from the acquisition of our new engineered arresting systems business in the aerospace defense market and mid-single digit sales growth in commercial aerospace; Those increases were principally offset by the timing of defense electronics revenues due to ongoing supply chain headwinds;
- In our Commercial markets, we experienced double-digit sales growth in the general industrial market and mid-single digit sales growth within the power & process market, despite the wind down on the China Direct AP1000 program as it nears completion; and
- Adjusted operating income of $114m increased 6%, while Adjusted operating margin increased 70 basis points to 18.2%, principally driven by the benefits of our ongoing company-wide operational excellence initiatives and favorable overhead absorption on higher revenues in the Aerospace & Industrial and Naval & Power segments, partially offset by unfavorable overhead absorption on lower revenues in our Defense Electronics segment.
Third Quarter 2022 Segment Performance
Aerospace & Industrial
- Adjusted sales of $213m, up $17m, or 9% overall, and included a 3% headwind from unfavorable foreign currency translation;
- Higher commercial aerospace market revenue reflected continued strong demand for sensors products and surface treatment services on numerous narrowbody and widebody platforms;
- Strong double-digit revenue growth in the general industrial market was driven by increased sales of industrial vehicle products, principally serving on-highway and specialty platforms, and higher sales of surface treatment services; and
- Adjusted operating income was $39 m, up 27% from the prior year, while Adjusted operating margin increased 260 basis points to 18.3%, reflecting favorable absorption on strong sales and the benefits of our ongoing operational excellence and pricing initiatives.
- Adjusted sales of $161m, down $21m, or 12%, principally reflected the timing of defense market sales due to ongoing supply chain headwinds related to the availability of electronic components;
- Lower aerospace defense market revenue reflected decreased sales of our embedded computing and flight test equipment;
- Ground defense market revenue declines reflected reduced sales of our tactical communications equipment; and
- Adjusted operating income was $37m, down 14% from the prior year, while adjusted operating margin decreased 50 basis points to 22.7%, primarily reflecting unfavorable absorption and mix on lower A&D revenues, partially offset by the benefits of our ongoing operational excellence initiatives.
Naval & Power
- Adjusted sales of $256m, up $21m, or 9%, principally driven by the contribution from the arresting systems acquisition for arresting systems equipment within the aerospace defense market;
- Naval defense market revenues increased slightly as higher revenues on the Columbia-class submarine and CVN-81 aircraft carrier programs were mainly offset by timing of revenues on the Virginia-class submarine and CVN-80 aircraft carrier programs;
- Higher power & process market revenues reflected continued strong growth in industrial valve sales in the process market, as well as higher nuclear aftermarket revenues supporting existing operating reactors; Those increases were partially offset by the wind down of production on the China Direct AP1000 program; and
- Adjusted operating income was $48m, up 11% from the prior year, while adjusted operating margin increased 30 basis points to 18.9%, as favorable absorption on higher organic revenues, as well as the benefits of our restructuring and ongoing operational excellence initiatives, were partially offset by unfavorable mix in the power & process market.
Free Cash Flow
- Reported free cash flow of $86m decreased $11m, primarily due to the timing of defense revenues and higher inventory levels as we continue to work through the challenging supply chain environment;
- Adjusted free cash flow of $86m; and
- Capital expenditures decreased $1m compared with the prior year.
New Orders and Backlog
- New orders of $818m increased 32% in the third quarter and generated a book-to-bill of 1.30, principally driven by strong demand for defense and commercial aerospace products within our A&D markets, and for nuclear aftermarket and process products within our Commercial markets; and
- Backlog of $2.6bn, up 19% from December 31, 2021, reflects strong demand in both our A&D and Commercial markets.
Share Repurchase and Dividends
- During the third quarter, the Company repurchased 90,307 shares of its common stock for approximately $13m; and
- The Company also declared a quarterly dividend of $0.19 a share.
Other Items – Completion of Financing of $300m in Senior Notes
- On October 27, 2022, the Company announced the successful completion of a private placement debt offering of $300m for senior notes (the “Notes”), consisting of $200m 4.49% notes due 2032 and $100m 4.64% notes due 2034.
02 Nov 22. Volocopter Raises Additional USD 182m in Second Signing of Series E Financing Round.
- NEOM and GLy Capital Management join financing round
- Funds to be used for aircraft certification & launching first commercial routes
Volocopter, the pioneer of urban air mobility (UAM), has raised an additional USD 182m in the second signing of its Series E funding round. NEOM – the Red Sea’s smart, cognitive region project – and GLy Capital Management of Hong Kong have joined Volocopter’s diverse investor base. This will carry the company beyond the certification of its electric passenger aircraft, the VoloCity air taxi.
Sustainable mobility is a tremendous challenge facing today’s world. Volocopter offers a new solution with a suite of fully electric aircraft built specifically for urban missions. Crucially, Volocopter’s unique and holistic UAM ecosystem approach connects all key global market players as it strives to get the industry off the ground. This includes developing multipurpose electric aircraft to bring passengers and goods safely to their destination (the VoloCity, VoloRegion, and VoloDrone), and enabling the physical and digital infrastructure to match (the VoloPort and VoloIQ).
Dirk Hoke — CEO of Volocopter
“Attracting NEOM And GLy as investors is a great success and highlights our pole position in the commercial certification race. This is the key requirement to launching commercial operations and starting to generate revenue.”
Volocopter is a UAM leader, with over ten years of development experience and upward of 1,500 successful test flights to its name. As the first and only electric vertical takeoff and landing (eVTOL) company to receive Design Organisation Approval (DOA) from the European Union Aviation Safety Agency (EASA), Volocopter expects to launch its first commercial air taxi routes in the next two years in megacities like Singapore, Rome, Paris, and the NEOM region.
Christian Bauer — CCO of Volocopter
“Raising over USD 180 m despite the generally tense economic climate highlights Volocopter’s robust technology strategy and its ongoing progress toward achieving market readiness. We appreciate the remarkable spirit of collaboration and the trust that our existing and new shareholders have placed in us as we forge ahead on our journey to bring the urban air mobility ecosystem to life.”
Volocopter and NEOM signed a joint venture (JV) company in December 2021, becoming strategic partners with a view to integrating the VoloCity air taxi and the VoloDrone into NEOM’s sustainable, smart, and seamlessly connected mobility systems. The JV will design, integrate, and operate the region’s all-electric public flight routes for the initial seven years post-launch.
Florian Lennert — Head of Mobility, NEOM
“At Neom we strongly believe in the potential for urban air mobility to provide a new dimension to future integrated transport systems. Building on our successful collaboration with Volocopter, we are excited to strengthen our partnership and to make a strategic investment in the future of mobility. We believe Volocopter is the best partner to build an advanced air mobility ecosystem in Neom. We look forward to realising this exciting mission jointly with Volocopter and its global partners.”
GLy is backed by Geely Holding, a long-term partner of Volocopter. In their joint venture, Geely and Volocopter aim to bring UAM to China. With its high density of megacities, China is expected to become one of the largest markets for electric air taxis.
Hrvoje Krkalo — Co-CEO of GLy Capital
“Volocopter’s vision encompasses industrial short- and medium-range commercial passenger applications to bring efficiency to the way we move around our cities. I look forward to supporting their journey; a journey that promises to be exciting, safe, and scenic in equal measure.”
With many interested companies having passed the due diligence phase, Volocopter’s Series E funding round remains open. (Source: ASD Network)
01 Nov 22. AMETEK Announces Record Third Quarter Results and Raises 2022 Guidance. AMETEK, Inc. (NYSE: AME) today announced its financial results for the third quarter ended September 30, 2022.
AMETEK’s third quarter 2022 sales were a record $1.55bn, an 8% increase over the third quarter of 2021, with organic sales growth of 11%. Operating income increased 14% to a record $384.5m and operating margins were 24.8%, up 140 basis points from third quarter 2021 margins.
On a GAAP basis, third quarter earnings per diluted share were $1.29. Adjusted earnings in the quarter were a record $1.45 per diluted share, up 15% from the third quarter of 2021. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.16 per diluted share. “AMETEK’s results for the third quarter were excellent,” commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Continued strong sales and orders growth combined with outstanding execution drove robust margin expansion and record earnings which exceeded our estimates. Our highly differentiated businesses and flexible operating structure enabled us to manage through an increasingly dynamic macro environment and deliver record results. Given this performance, we are again raising our sales and earnings guidance for the full year.”
Electronic Instruments Group (EIG)
EIG sales in the third quarter were $1.05bn, up 7% from the third quarter of 2021. EIG’s operating income in the quarter increased 11% to $272.7m and operating income margins were 25.9%, an increase of 90 basis points versus the third quarter of 2021.
“EIG performed exceptionally well in the quarter with strong and broad-based sales growth and excellent operating results,” noted Mr. Zapico. “We continue to see solid demand in our key end markets, in particular across our Process businesses.”
Electromechanical Group (EMG)
Third quarter EMG sales were a record $497.7m, up 8% from the same quarter in 2021. EMG’s third quarter operating income was a record $136.5m, up 19% versus the prior year, while operating income margins were a record 27.4% in the quarter, up 240 basis points versus the prior year.
“Our EMG businesses delivered exceptional performance in the third quarter. Continued strong sales growth and tremendous operating execution drove robust margin expansion and record level operating margins,” noted Mr. Zapico.
“Our businesses continue to perform extraordinarily well in a difficult environment. AMETEK’s flexible and disciplined growth model allows us to navigate external challenges, deliver exceptional results and ensure we are positioned for long term success. Our differentiated businesses, diversified market exposures, proven operating capabilities and strong cash flows provide us the ability to drive long-term, sustainable growth,” continued Mr. Zapico.
“For 2022, we now expect overall sales to be up approximately 10% compared to 2021. Adjusted diluted earnings per share are expected to be in the range of $5.61 to $5.63, an increase of 16% over the comparable basis for 2021. This is an increase from our previous guidance range of $5.46 to $5.54 per diluted share,” he added.
“We expect overall sales in the fourth quarter to be up mid-single digits on a percentage basis versus the prior year. Fourth quarter adjusted earnings per diluted share are anticipated to be in the range of $1.45 to $1.47, up 6% to 7% compared to the fourth quarter of 2021,” concluded Mr. Zapico. (Source: PR Newswire)
01 Nov 22. AMETEK Announces Two Acquisitions. AMETEK, Inc. (NYSE: AME) today announced that it has completed two acquisitions – Navitar, Inc. and RTDS Technologies Inc. Combined, AMETEK deployed approximately $430m on these acquisitions and acquired approximately $100m in annual sales.
“We are excited to welcome the Navitar and RTDS teams to AMETEK,” commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. “These businesses nicely complement our existing capabilities and strategically expand our presence in highly attractive secular growth areas. AMETEK continues to strengthen our portfolio through the acquisition of market-leading businesses with innovative, advanced technology solutions.”
Both companies join AMETEK as part of its Electronic Instruments Group (EIG) – a leader in advanced analytical, monitoring, testing, calibrating and display instrumentation.
Headquartered in Rochester, New York, Navitar is a leading provider of advanced optical components and solutions for high precision applications across a diverse set of end markets.
Navitar is a market leader in the design, development and manufacturing of customized, fully integrated optical imaging systems, cameras, components and software. The Company’s technically advanced, innovative optical solutions serve critical applications in high-growth end markets including medical and life sciences, machine vision and robotics, and industrial automation.
“Navitar’s market leading optical components and solutions nicely complement our existing optics portfolio while also providing the ability to leverage our respective sales channels to accelerate growth and market access,” added Mr. Zapico. “Additionally, Navitar is well positioned to benefit from the growth in demand for precision optical solutions across an expanding number of applications.”
Headquartered in Winnipeg, Canada, RTDS is a leading provider of real-time power simulation systems used by utilities, and research and educational institutions in the development and testing of the electric power grid and renewable energy applications.
RTDS’s solutions help prototype, verify, and test the performance of the power grid, power instruments, and networks in a closed loop system to help accelerate product development cycles and decrease testing costs.
“RTDS is an outstanding acquisition and excellent strategic fit with our existing Power Instruments businesses’ differentiated testing and simulation capabilities,” continued Mr. Zapico. “Their real-time simulation solutions play a key role in the modernization of the electric grid and in supporting renewable energy development, distributed power generation and energy storage.”
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with 2021 sales of $5.5bn. The AMETEK Growth Model integrates the Four Growth Strategies – Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions – with a disciplined focus on cash generation and capital deployment. AMETEK’s objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. The common stock of AMETEK is a component of the S&P 500. (Source: PR Newswire)
01 Nov 22. Leidos Holdings, Inc. Reports Third Quarter Fiscal Year 2022 Results.
- Revenues of $3.6bn, up 4% year-over-year
- Net Income of $164m; Adjusted EBITDA of $372m
- Diluted Earnings per Share of $1.17, or $1.59 on a non-GAAP basis
- Record Cash Flows from Operations of $748m and Free Cash Flow of $721m
- Net Bookings of $4.1 bn (book-to-bill ratio of 1.1)
- Improved revenue outlook for 2022
Leidos Holdings, Inc. (NYSE: LDOS), a FORTUNE 500® science and technology leader, today reported financial results for the third quarter of fiscal year 2022.
Roger Krone, Leidos Chairman and Chief Executive Officer, commented, “Our third quarter results demonstrate the momentum in our business as we continue to report revenue growth at the upper end of our guidance across our diversified portfolio. In addition, our dedicated team delivered earnings in excess of our forecast and generated the highest quarterly cash flow from operations in our history. These results position us well to deliver on our full-year financial targets as we make the world safer, healthier and more efficient.”
Revenues for the quarter were $3.61bn, up 4% compared to the third quarter of 2021; the largest contributors were continued growth of the Navy Next Generation Enterprise Network Recompete (NGEN-R) Service Management, Integration and Transport (SMIT) contract; ramp-up of the National Aeronautics and Space Administration (NASA) Advanced Enterprise Global Information Technology Solutions (AEGIS) contract; and increased deployments on the Defense Healthcare Management System Modernization (DHMSM) program.
Net income was $164m and diluted EPS was $1.17. Net income and diluted EPS were down 21% and 18% year-over-year, respectively. Net income and diluted EPS include a $16m unrealized loss associated with the foreign currency forward contract entered into in order to hedge the preliminary purchase price for Cobham Aviation Services Australia (“Cobham”) in Australian dollars. In addition, net interest expense increased to $50m from $47m in the third quarter of 2021. Weighted average diluted shares for the quarter were 138m compared to 143m in the prior year quarter, which benefited from the Accelerated Share Repurchase (ASR) agreement implemented in the first quarter of 2022.
Adjusted EBITDA was $372m for the third quarter, down 8% year-over-year, and adjusted EBITDA margin decreased from 11.6% to 10.3% over the same period. Profitability in the year-ago quarter was elevated due to temporarily increased workload and decreased indirect expenses as a result of the COVID-19 pandemic as well as an elevated level of write-ups on certain contracts. Adjusted EBITDA and adjusted EBITDA margin increased $6m and 10 basis points, respectively, compared to the second quarter of 2022. Non-GAAP net income was $221m for the third quarter, down 15% year-over-year, and non-GAAP diluted EPS for the quarter was $1.59, down 12% year-over-year.
Cash Flow Summary
In the third quarter net cash provided by operating activities was $748m, or 462% of net income attributable to Leidos shareholders. After adjusting for payments for property, equipment and software, free cash flow was $721m, resulting in a free cash flow conversion ratio of 329%. In addition, Leidos used $26m for investing activities and $217m for financing activities.
Leidos returned $49m to shareholders in the third quarter as part of its regular quarterly cash dividend program. As of September 30, 2022, Leidos had $807m in cash and cash equivalents and $5.0bn of debt.
On October 30, 2022, Leidos completed the acquisition of Cobham Special Mission, which provides airborne border surveillance and search and rescue services to the Australian Federal Government. Purchase consideration was $305m Australian dollars, subject to working capital adjustments. At the signing of the definitive agreement, Leidos entered into a forward contract for $215m to offset foreign currency fluctuations of the full purchase consideration. Based on the exchange rate at the close, the translated purchase price was $196m. We realized a loss of $18m associated with the foreign exchange forward contract.
On October 28, 2022, the Leidos Board of Directors declared a cash dividend of $0.36 per share to be paid on December 30, 2022, to stockholders of record at the close of business on December 15, 2022.
New Business Awards
Net bookings totaled $4.1bn in the quarter, representing a book-to-bill ratio of 1.1. As a result, backlog at the end of the quarter was $35.0bn, of which $7.4bn was funded. Notable awards in the quarter include:
- Sentinel. Leidos was awarded a prime task order by the Department of Defense to enhance technological innovation with a focus on rapid insertion of technologies across the mission spectrum for multiple services, and integrating new technology with existing and legacy systems for increased effectiveness. Leidos will support the government with rapid technology insertion to enhance Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) missions at a global scale. This award enables Leidos to expand its extensive C5ISR portfolio as well as deliver a critical capability towards improved warfighter support. The contract has a total value of $1.5bn dollars and includes a one-year base period of performance with four one-year options.
- U.S. Naval Sea Systems Command (NAVSEA) Medium Unmanned Undersea Vehicle (MUUV). Leidos was selected by the NAVSEA to design and build a MUUV to support intelligence preparation of the operational environment by providing submarine-based autonomous oceanographic sensing and data collection for the Navy. The MUUV will also provide surface-launched and recovered mine countermeasures. The single award, cost-plus-fixed-fee contract holds an approximate value of $358m if all options are exercised.
- Defense Information Systems Agency (DISA) Defense Enclave Services (DES) Task Order. DISA awarded Leidos a task order contract with a total estimated value of $138m dollars with a five year period of performance. Through the DES contract, Leidos will consolidate enterprise IT services and provide standardized, responsive and cost-effective solutions for more than 370,000 users spanning 22 Department of Defense (DoD) agencies and field activities with over 500 sites both in the U.S. and abroad. This first task order will lay the framework and begin to consolidate, integrate and optimize five agencies on a common network architecture through digital modernization and transformation. The work will focus on mission value and user experience, while improving cybersecurity, network availability and reliability for Fourth Estate agencies. (Source: PR Newswire)
02 Nov 22. MBDA and Safran take a majority stake in CILAS. Safran Electronics & Defense and MBDA have completed the acquisition of ArianeGroup’s 63% majority stake in CILAS, a French company specialized in lasers for military applications.
The acquisition was carried out through a joint company created for the purpose called HMS Laser, equally owned by Safran Electronics & Defense and MBDA.
Founded in 1966, CILAS designs, develops, produces and sells laser products and optical solutions for military and civil applications.
Safran Electronics & Defense and MBDA will support the growth of CILAS, as well as the development and production of solutions designed to support France’s sovereignty and strategic independence, while also facilitating the company’s European positioning and export opportunities.
CILAS is a specialized equipment supplier offering cross-functional technologies. It will continue to apply a business model based on its position as a supplier of products and technologies to all domestic and international customers.
“CILAS is the French laser technology champion,” said Eric Béranger, CEO of MBDA. “Today’s weapon systems increasingly call on latest-generation lasers, and this trend is likely to continue. By combining the complementary strengths of CILAS and MBDA, we will meet the upcoming challenges for France and Europe of achieving operational superiority and strategic independence.”
Martin Sion, CEO of Safran Electronics & Defense, added, “CILAS is a long-standing partner to our company. Our complementary optronics capabilities will enable us to develop and refine our solutions involving laser designation, while also investigating the possibilities of optical communications for both terrestrial and space applications. We can now team up with CILAS and our partner MBDA to offer sovereignty solutions that integrate power lasers, by calling on our respective areas of expertise.” MBDA is the only European group capable of designing and producing missiles and missile systems that correspond to the full range of current and future operational needs of the three armed forces (land, sea and air). With a significant presence in five European countries and within the USA, in 2021 MBDA achieved revenue of 4.2 bn euro with an order book of 17.8bn euro. In total, the group offers a range of 45 missile systems and countermeasures products already in operational service and more than 15 others currently in development.
MBDA is jointly owned by Airbus (37.5%), BAE Systems (37.5%), and Leonardo (25%).
01 Nov 22. Hensoldt Grows as Europe Looks to Increase Military Capabilities. In a bid to expand its presence in European radar markets, Leonardo quickly moved to acquire a stake in Hensoldt when KKR moved to divest its holding in 2021.
At the same time, the German government via state-owned Kreditanstalt für Wiederaufbau (KfW) acquired a similar stake, 25.1 percent, in order to preserve national security and better control the sale and export of sensitive military technology.
Leonardo, which has collaborated on numerous programs with Hensoldt, acquired its 25.1 stake for EUR606m shortly after the KfW purchase. The purchase helps expand Leonardo’s geographic footprint while fostering cooperation and consolidation in the European defense electronics industry. The upcoming Future Combat Air Systems programs in the European Union and the U.K. will be a key area of opportunity, as the systems will require interoperability between the allies.
Because of these stake sales, KfW and Leonardo are now the largest shareholders, holding 25.1 percent each. As for the remaining shares, as of 2022 Lazard Asset Management holds 5.5 percent and a free float on public exchanges accounts for the remaining 44.3 percent.
Thanks to its position as a defense electronics producer, Hensoldt was spared the worst of the COVID-19 crisis. For 2021, Hensoldt reported revenue of EUR1.5bn, up 22 percent from EUR1.2bn in 2020. The company posted net income of EUR63m, compared to a loss of EUR65m in 2020. The company has maintained a solid growth trajectory thanks to major contract wins such as the award to produce the Pegasus airborne electronic signals intelligence system for Germany. This order, with a volume of around EUR1.25bn, helped push the company’s backlog to a record EUR5.0bn. Other key wins during the recent past include an award to supply the radar and self-protection systems for the Eurofighter Quadriga program worth around EUR300m and a contract for production and delivery of the optronic observation and reconnaissance systems for the Fennek military vehicle valued at EUR75m. Most recently, the company was awarded a long-term service contract for the Eurofighter worth EUR270m.
As it looks ahead, Hensoldt can expect the same level of stability. Halfway through 2022, the company reported revenues of EUR682m (H1 2021: EUR486m). For the full year, revenue is expected to grow by 15 percent to EUR1.7bn.
Helping to keep this growth moving has been Russia’s invasion of Ukraine, which has led Europe to quickly ramp up defense spending. One of the critical sectors is ground-based air defense. Here, Hensoldt and Diehl Defence intensified their existing cooperation and quickly delivered the first of four IRIS-T SLM air defense systems to Ukraine in October 2022. As the conflict continues, the need for improved electronic systems is expected to rise as Germany and its NATO allies improve their militaries to meet the threat. (Source: Google/https://dsm.forecastinternational.com/)
31 Oct 22. OSL acquires Rinicom Intelligent Solutions to expand its AI capability. Operational Solutions Ltd (OSL) has acquired Rinicom Intelligent Solutions (RIS), a leading-edge artificial intelligence and video analytics company based in Lancaster, signifying a great leap forward for OSL’s mission to create safer spaces across multiple domains globally. The acquisition of RIS will allow OSL to enhance its offerings with more advanced artificial intelligence-based image analytics, unlocking significant toolsets and capabilities for the delivery of world-leading situational intelligence.
OSL’s CEO, Mark-Legh Smith, states: “Bringing RIS’s world-leading AI capabilities in-house unlocks exciting opportunities to further develop our integrated, intelligent situational awareness platform to provide safe, secure, and efficient operating environments across multiple domains including drone detection, site security, automated drone operations, and smart environments.”
Beginning as a joint venture between OSL and Rinicom Limited, RIS was established in January 2020 to apply enhanced image analytics capability to drone detection tools. As its capabilities have evolved, RIS has utilised neural networks to identify and classify hostile drones against other objects such as aircraft and birds with an unmatched level of accuracy and responsiveness. In the process, they developed two innovative products – SkyPatriot HunterTM and InSightTM. Used to bolster the image analytics capabilities of any camera or provide a cost-effective 3D image sensor with built-in image analytics, these tools will be integrated with OSL’s offerings to enable even greater visibility and awareness for security teams and users in any location.
OSL provides the infrastructure, expertise and software needed to empower security risk reduction and management for a range of customers, from Lockheed Martin to Heathrow airport. This acquisition will give OSL, which has doubled in size in the last year, access to a team of data scientists and software developers that are highly skilled in artificial intelligence technology. The RIS team will be collaborating directly with OSL’s own team of specialists to integrate these capabilities with OSL’s array of drone detection services.
As Mark Legh-Smith reflects: “I’m proud to announce OSL’s acquisition of RIS. Together, we will continue developing innovative drone detection tools that protect some of the world’s most complex airspaces, empowering users with greater situational intelligence. While the business is enjoying strong organic growth we are continuing to look for highly strategic acquisitions that either add leading technical capability or facilitate further market access. OSL’s vision is to be the industry-leading partner for smart air and ground systems to dramatically enhance our clients’ capability and cost-effectiveness and this acquisition will contribute towards an exciting future.”
Speaking on behalf of RIS, CEO Professor Garik Markarian stated: “We are thrilled that OSL recognised the full potential and expertise of our artificial intelligence tools, and we look forward to working more closely with the team to continue enabling advanced drone detection and security wherever possible.”
OSL provides situational intelligence to create safer spaces on the ground and in the air. We provide innovative solutions based on disruptive technology such as data fusion and artificial intelligence to enhance the security, safety, and efficiency of our clients’ operations. With applications in drone detection, drone management and perimeter security, we aim to enable rapid, responsive approaches that safeguard the public and property. Visit OSL’s site to discover our range of advanced offerings. OSL received £8 m of funding from BGF, the UK and Ireland’s most active growth capital investor, in December 2021. (Source: PR Newswire)
31 Oct 22. Rocket maker Firefly Aerospace looks to raise up to $300m -sources. FireFly Aerospace, the U.S. rocket builder that reached orbit in space this month, joining the likes of SpaceX and Rocket Lab, is seeking up to $300m in a private fundraising round, according to people familiar with the matter.
Firefly has yet to specify the valuation it is seeking, the sources said. The space company was valued at more than $1bn when private equity firm AE Industrial Partners became its controlling shareholder in March.
The Cedar Park, Texas-based company aims to complete the funding round by the end of the year, said the sources, who spoke anonymously because the matter was confidential.
Firefly Chief Executive Officer Bill Weber told Reuters in an interview this month the company was raising funds but did not provide details. A FireFly spokesperson declined to comment when asked about the fundraising, as did a spokesperson for AE Industrial Partners.
Weber said in the interview that fresh funding would help the company complete construction of manufacturing facilities for its Alpha rocket in Cape Canaveral, Florida, and accelerate development of a bigger rocket the company plans to build with Northrop Grumman Corp (NOC.N).
Firefly’s Alpha rocket reached orbit for the first time on Oct. 1. It is among a handful of U.S. space companies vying to launch small satellites into space.
Firefly is already taking orders of roughly $15m per launch for its 95 foot-tall Alpha rocket, offering governments and satellite companies a medium-sized ride to space. SpaceX’s bigger Falcon 9 rocket costs $62m and Rocket Lab’s smaller Electron rocket costs $7m.
Firefly was rescued from bankruptcy in 2017 by Ukrainian-born entrepreneur Max Polyakov’s Noosphere Ventures. U.S. national security concerns forced Noosphere to sell its majority stake in FireFfly to AE Industrial Partners, ending a months-long crisis that prevented the company from launching its rocket. Investments in space companies with capital-intensive projects have fallen in the third quarter, as decades-high inflation and rapidly rising interest rates force investors to focus on companies with viable products. Venture capital investments in space companies fell 44% from a year earlier, according to a quarterly report from VC firm Space Capital. (Source: Reuters)
28 Oct 22. Rohde & Schwarz closes fiscal year successfully despite global uncertainty. The Rohde & Schwarz technology company ends a successful 2021/2022 fiscal year with increased revenue and strong order intake. The strategic focus on communications, information and security has enabled the company to remain resilient in the face of global uncertainty. The high-tech solutions from its Test & Measurement, Technology Systems and Networks & Cybersecurity Divisions enable industry and government customers to ensure their technological and digital sovereignty.
The 2021/2022 fiscal year (July to June) was characterized by diverging trends. Revenue increased to EUR 2.53bn. The positive operating results were in line with expectations. At EUR 2.84bn, order intake was significantly higher than in the previous year. On June 30, 2022, the company had around 13,000 employees.
The excellent order intake shows that Rohde & Schwarz is well positioned in its markets. Each of the company’s three divisions achieved double-digit growth. However, the conversion of orders into billable sales was impeded by the tight supply chain situation. The company’s high degree of vertical integration, with plants in Germany, Czech Republic, Singapore and Malaysia, bolstered its stability.
Innovative test and measurement solutions for future technologies
With its T&M solutions, Rohde & Schwarz provides the foundation for technological advances in growth markets such as wireless communications, automotive, quantum computing and aerospace & defense. This led to strong demand for high-performance wireless testers, signal generators, spectrum analyzers and oscilloscopes.
Mobile communications is driven in particular by the worldwide rollout of 5G networks and the greater availability of 5G-enabled devices. Meanwhile, the 6G standard is on the horizon. Rohde & Schwarz is supporting fundamental 6G research up into the subterahertz range. The automotive market is also defined by widespread technological advances. The focus is on connectivity and communications, i.e. vehicle-to-everything (V2X) technology. With a newly launched radar test system, the company has established itself as a technological leader in this application field. For the automotive industry, this is a decisive step toward making the vision of autonomous driving a reality.
Security scanners to protect public and private spaces
Rohde & Schwarz security scanners help improve security at events, airports and companies. The R&S® QPS201 security scanner was officially placed on the Qualified Products List of the Transportation Security Administration (TSA), taking an important step toward deployment at US airports and other TSA security screening facilities. The scanner now has good prospects in the US market in addition to Europe and Asia.
Rohde & Schwarz as a technology partner in project business
The current geopolitical developments are leading to a reevaluation of security and defense in society and at the political level. Rohde & Schwarz has proven itself a reliable technological partner in numerous customer orders. For example, the company won a major contract from the British Royal Navy to equip also the Batch 2 Type 26 frigates with an integrated communications system. Furthermore, the company landed its first order for a complete R&S naval communications suite in Germany. In the land based defense segment, the company demonstrated its capabilities to the German armed forces with deliveries of the SVFuA/SOVERON®D digital tactical radio for the retrofitted Puma infantry fighting vehicle.
The new R&S® Series 5200 air traffic control radio, which ensures safety for civil aviation, entered the market. The radio was an immediate bestseller in Vietnam, Taiwan, Slovenia, Australia and Malaysia.
In the broadcast & media market segment, Rohde & Schwarz completed development of the first model of a new transmitter generation. The high-power transmitter allows broadcast network operators to significantly reduce their CO2 emissions and operating expenses. It is also ideal for future services such as 5G Broadcast. The transmitter attracted much attention at the IBC in Amsterdam, one of the industry’s key trade shows.
Combined forces for security and reconnaissance
The acquisition of Schönhofer Sales and Engineering GmbH ideally complements Rohde & Schwarz products through vertical integration. With this new fully owned subsidiary, Rohde & Schwarz now provides the entire signal intelligence portfolio from a single source – from sensor technology to data analysis and sensor fusion.
Networks & Cybersecurity: an established key supplier in Germany
LANCOM Systems GmbH of the Networks & Cybersecurity Division also developed extremely positively across all product segments. Together with Rohde & Schwarz Cybersecurity and Rohde & Schwarz SIT, the company makes important contributions to Germany’s digital sovereignty as the strongest player in the German B2B market.
Sustainability in all aspects of corporate management
Rohde & Schwarz is a privately owned company that is financed by its own resources. Corporate Management leads the company with a long-term focus and sustainability plays an important role in all activities.
Rohde & Schwarz is making climate protection a more integral part of its business – especially through the expansion of renewable energy sources. By the end of the 2021 calendar year, the main company locations in Germany had successfully switched over to electricity from renewable sources. A further example is the planned rooftop photovoltaic system on the parking garage of the Memmingen plant, which will expand an existing solar energy system.
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.