AVTECH reported revenue of SEK 2.9 million. The revenue was lower than our expectations of SEK 3.7 million. However EBIT was SEK -1.3 million, which is in line with our estimates of SEK -1.0 million. The worse than expected revenue growth can be explained in a slow ramp up in the Southwest Airlines contract were the majority of the revenue streams comes from.
New information in the report was the collaboration project between Met Office, EasyJet and the airport at Gatwick in London. The purpose of the project is to improve the efficiency of arriving aircrafts to Gatwick using AVTECH’s product Aventus as a timing tool in so called Time Based Operations. The project has an ambition to participate in an EU-funded large scale demonstration of time based operation into airports. Project duration will be two years after the decision on financing.
This is a prestigious collaborations that deepens the relationship with Met Office and EasyJet. It will also prove AVTECH’s as a solution in the eco system between aircrafts and airports which is one of the company’s biggest visions. However the financial impact of this collaboration alone is small the next coming two years.
AVTECH has decided to recruit three software developers. The decision is based on an expected revenue increase in other investments especially from the new product called Aventus SIGMA. The new recruitments will mean higher personal cost than previously expected the coming quarters. More about this in our upcoming report update.