Redeye - AVTECH: Hull Integrity Intact

AVTECH reported a quarter roughly in line with revenue expectations at SEK 3.5 (Estimated SEK 3.8) million. Its Descent solution revenues continued to be the primary contributor of the reported revenues (before activated costs), likely between SEK 1.5-1.9 million, which was close to our estimate of SEK 1.8 million.

The potential binding of EasyJet this year is an important one to showcase, as it illustrates the competitiveness of AVTECH solutions itself, under a period of free-falling oil prices, and will also act as another significant reference customer if successful. We also expect a closing with Air Berlin soon. Regarding CEO Christer Staaf’s insider suspicion we still fully support our previous statement of ‘innocent until proven guilty’.

The intrinsic value estimate is maintained. Short-term revisions of estimates have been performed to further recognize the prolonged procurement processes, which we see as hurdles that can be managed in the longer term. Read more in the analysis below. 

The full analysis in PDF-format: http://goo.gl/lqSHQA

This is a pressrelease from Redeye. Read more analysis at www.redeye.se. 

About Us

About AVTECH Sweden AB (publ):AVTECH develops products and services for digital Air Traffic Management (ATM). Its customers include the global aviation industry; e.g. airlines, airports, aviation authorities, technology companies and airline manufacturers. By using AVTECH’s products and services, each individual flight as well as the entire airline operation can be optimized in terms of cost, noise and emission, efficiency, punctuality and safety. The head office is in Stockholm, Sweden with subsidiaries in Toulouse, France and Dubai, U.A.E.Web: www.avtech.se

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