SimiGon (“the Company”) (LSE: SIM), a global leader in providing simulation solutions, is pleased to announce an exclusive five-year agreement with Check-6 Inc., a leading provider of training solutions to the energy and mining industries, for the delivery of SIMbox based training solution, a unique virtual reality simulator to train oil rig crews worldwide.
Under the terms of the contract, SimiGon will be paid US$5.6m to license its SIMbox software over the five-year period, with a minimum of $1.1m per year starting this year. In addition to this, SimiGon will also receive royalty payments for each individual who trains using the SIMbox software. The revenue contribution from this contract was already factored into management’s expectations for the year ended 31 December 2011. It also will contribute to improved revenue visibility for FY 2012 and beyond.
This is the first major contract for SimiGon outside the aerospace and defence industry and the first step in the Company’s growth strategy to diversify its product offering and increase its addressable market. Check-6 has worldwide operations and its clients include industry leaders such as Chevron, Diamond Offshore, BP, Hess and others. This agreement underlines SimiGon’s potential to access a much larger addressable market and has the potential to enable SimiGon, together with Check-6, to expand further into the energy, alternative energy, and mining industries with similar opportunities.
The SIMbox-based devices will allow oil rig operators to train for their highly skilled, critical positions. The simulator not only allows operators to practice their skills in a safe environment, but also provides automatic assessment, remediation, and documentation of their training.
SimiGon President & CEO, Ami Vizer, said: "This is a significant contract win for SimiGon and an important agreement with Check-6, an established organisation in the oil & gas market, thereby opening up a large new addressable market for the Company. We are excited to be chosen as the exclusive supplier to Check-6 where our SIMbox software will help oil rig crews prepare for highly-skilled but critical operations. More time with a simulator reduces human error on the job site. We look forward to building a strong long term relationship with Check-6 that will benefit both companies."
Check-6 provides safety, leadership, and rig training for clients around the world. Its seasoned experts improve operational efficiency and safety, while minimising risk for those who work in the oil and gas industries.
Check-6 President & CEO, Brian Brurud, said: “Consistent training and oversight have ensured our cadre of former TOPGUN fighter pilots, special operations veterans and astronauts survive some of the most dangerous situations. Simulators have played a huge role in honing our skill level. We are delighted to partner with SimiGon and bring the same level of training to the oil & gas industry because we know it will make a huge difference to our clients by preserving the lives of their workers, and the profitability of their companies.”
Chief Executive Officer
Ami Vizer, +1 (407) 737 7722
Chief Financial Officer
Efi Manea, +1 (407) 737 7722
Evolution Securities Ltd (NOMAD)
Jeremy Ellis / Chris Clarke, +44 (0) 207 071 4300
Luther Pendragon (Public Relations)
Harry Chathli / Alexis Gore, +44 (0) 207 618 9100
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here