The Company expects to report financial results for the fourth quarter and full year 2023 and to conduct an earnings conference call in
Dear Fellow Shareholders, I want to take this opportunity to relate the achievement of significant milestones across our Company and to update you on the progress we are making toward our strategic growth initiatives.
Tech Status Update: AFIRS EdgeTM
I am excited to announce that we have formally completed our data package and have submitted this to
Meanwhile, we are on schedule with development of the plug-in compatible version of the Edge called the Edge+, designed to be installed overnight in customer aircraft in the same avionics bay slot as existing legacy products and utilizing existing aircraft wiring. We expect to be conducting STC certification testing on an A320 aircraft and receiving our first approval in Q3 of 2024. The Edge+ is creating exciting discussions within tier one airlines as the ease of installation in their legacy fleets allows them to effortlessly upgrade their capability. Both Edge versions are very much of interest to airlines as they look to move to a 5G compatible product over the older 2G, 3G, and LTE products which are sunsetting.
As announced on
Leveraging the Edge: Our Weather and Climate Business
In our weather business, we believe that FLYHT's technology greatly enhances the accuracy of short- and long-term weather predictions and is a key tool in providing more accurate and earlier extreme weather warnings, and in the detection and avoidance of contrail generation. I'm pleased to report that we are advancing with our two major programs with the
In the
In the
Additionally, as the FLYHT-WVSS-II production line gets underway in
Europe Update: CrossConsense
I am equally enthusiastic about the innovation and opportunities at CrossConsense (wholly owned subsidiary of FLYHT). In December, I spent a week in
Looking ahead, CrossConsense plans to roll-out several exciting new extensions to their app offerings this year. Many all-new features will make it into their popular solution Aircraft
Driving Hardware and Software Sales in Both 5G Aviation Solutions and Weather Intelligence
We are laser focused on deploying our innovative hardware into a growing number of different aircraft types to drive our recurring SaaS revenue strategy. In both our 5G aviation solutions and weather intelligence businesses, it is the integration of our
We are already seeing this play out in Weather, which is increasingly looking to be an even greater opportunity than we had originally envisioned. Each aircraft installation will include a FLYHT-WVSS-II humidity sensor, and, in order to transmit the data off the aircraft in real-time, will be fully integrated with a
Based on conversations we are having, we believe the work we are doing with the
Already, we have a solid growing base of recurring SaaS revenue which we expect to further expand as we roll out our new offerings. The growth of this high margin revenue stream, which now represents over half of the total compared to a third just six years ago, is the result of our strategic focus on offering cloud-based software applications and services that integrate with and leverage an expanding portfolio of hardware products. Over the past five years our SaaS revenue sources have been diversified, no longer simply tied to the number of flights or number of flight hours. We generate SaaS revenue from across the business including from satcom, weather and maintenance, and soon with the introduction of the Edge, new Actionable Intelligence opportunities. Having software integrated with hardware is so powerful that customers with early access to the Edge are increasingly requesting our whole software suite.
Fiscal Responsibility Sets Up for a Stronger 2024
We continue to reinvest the positive cashflow generated from our previous, still active, generations of hardware, to fund the R&D and commercialization of our emerging opportunities. A contributor to that positive cashflow is our SaaS revenues with an annual run rate of over
Thank You for Your Ongoing Support
In my 22-plus years at FLYHT, I have never felt more confident in FLYHT's future. Addressing today's aviation industry and weather community needs, we are building upon our legacy business of aviation safety services, with the right solutions and a clear route to market. We have a significant addressable market waiting for us.
I express my confidence to you while recognizing that our share price has come under pressure as STC timelines and commercialization has taken longer than expected. Both the pace of our progress and the performance of FLY shares are unacceptable to all of us and especially to me. We are working tirelessly to speed our initiatives so that we can deliver to our customers and fulfill our promise to you, our shareholders.
Finally, I would like to extend my sincere gratitude to all our shareholders who continue to support FLYHT as we advance technology that has the potential to become the global standard for the aviation and weather communities. We believe we are on the cusp of generating revenue and cashflow from our 5G aviation and weather solutions which will drive growth for years to come and ultimately shareholder value. We look forward to several exciting developments in the months and years ahead as we execute our 2024 business plan.
About
FLYHT provides airlines with Actionable Intelligence to transform operational insight into immediate, quantifiable action, and delivers industry leading solutions to improve aviation safety, efficiency, and profitability. This unique capability is driven by a suite of patented aircraft certified hardware products, AFIRS. Solutions include an aircraft satcom/interface device that enables cockpit voice communications, transmission of aircraft data both while inflight via satellite and post-flight via 5G, real-time aircraft state and fleet status analysis, and preventative maintenance solutions. FLYHT's hardware products can also be interfaced with FLYHT's proprietary relative humidity sensors to deliver airborne weather and humidity data in real-time.
FLYHT is headquartered in
Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain 'forward-looking information' within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to projected revenues and related matters. Although FLYHT believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. FLYHT cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations, assumptions and hypotheses made by the Company, including, but not limited to projected revenues. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include but are not limited to global economic conditions; industry conditions, and supply chain delays. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. FLYHT undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Contact:
Chief Financial Officer
Tel: 403.291.7437
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