KJ was able to expand on a number of points that often get glossed over in shorter presentation time slots. Martin Gagel’s informed questions during the presentation helped KJ expand the content even further.
From slides shown...
- 100+ customers now (including those of CrossConsense)
- 19M backlog at Q1 2023
- 77M sales “pipeline of opportunity”
- revenue has recovered to beyond pre-COVID levels
Note: times below are approximate.
A comment at 29:00 caught my ear. KJ mentioned that relative humidity (RH) is not natively captured off of an aircraft. Not off Boeing or Airbus, or Embraer. Why mention Embraer? We are frequently reminded that Boeing and Airbus make up 95% of the global commercial fleet. The two STCs for the Edge that are publicly known about are for these two airframers. Does this tie in with some previous posts of mine about the possibility that some of the outstanding 30-unit UK Met order for the Edge and the WVSS-II will be installed on LoganAir planes? On their thirteen ERJ-145’s and maybe on their sixteen ATR’s, too?
At 34 min. Meteorological agencies would pay for the hardware installation of an AFIRS Edge and a WVSS-II sensor, and additionally may compensate airlines for collecting the data. The airlines can use the “free” hardware that's been installed for their own purposes. FLYHT would make money on the sale of the weather data and could make more for SaaS revenue from participating airlines. The arrangement is currently being negotiated.
At 38 min. The Edge/WVSS-II has the “genuine potential to become OEM line-fit”, which could mean “large, large numbers (of installations) per month per OEM”.
Jun 18, 2023 article headline... "Boeing Forecasts Demand for 42,600 New Commercial Jets Over Next 20 Years."
At 41 min. $30,000-$35,000 for the hardware and installation kit for an Edge. 100-125 hrs of installation time if done from scratch. (A swap-out replacement of the Teledyne 2G/3G/LTE WQAR could incorporate the same ARINC wiring and tray, so it would cost less in both materials and labour. It could be performed in as little as half an hour. A FLYHT replacement could take place as either retrofit or as OEM.)
At about this same time, on the slide... SaaS revenue of $6,000 - $8,400 per year per aircraft.
At 48 min. The three recent sales team hires from Teledyne (Willie Cecil, Murray Skelton, Scott Chambers), “the gentlemen that managed, built and sold (the Teledyne WQAR) decided to come and work at FLYHT”. “Willie actually designed and built (the Teledyne WQAR) twenty years ago. Murray and Scott sold it, for Teledyne.”
At 53 min. re FLYHT’s estimate for the sake of the presentation of potentially taking a 20% market share of the TAM (total addressable market). KJ: “I don’t think that we are going to be limited to 20%.” “I don’t see us stopping there.” ...”there will be competition”.
At 55 min. FLYHT is submitting responses to RFPs from tier one airlines. “We are being invited to the table.” “FLYHT’s stature in the industry is rising, and rising quickly.”
At 57 min. Teledyne holds about 80%-90% of the WQAR market (notably OEM) but has shown no interest as yet in either developing or selling a 5G upgrade or replacement.
At 60 min. KJ, in summary (paraphrasing), look for contracts. Over the next few quarters we should see the uptake of the Edge in its various forms, with SaaS. Expect to see movement in the weather business, hardware and SaaS. Continuing STC development by FLYHT’s aircraft certification team for the Edge. The Edge is “active on the A320 and the 737“. “Look for (the list of aircraft types) to expand and continue growing.” (See earlier comment re LoganAir, Embraer, ATR.)
FLYHT at Radius Research’s Pitch, Deep Dive and Q&A Webinar.
https://www.youtube.com/watch?v=yw9FsHSL2Xs 