A reminder of the terms of the UK Met order. 30 installs total. While Loganair has enough planes to have satisfied the count, my understanding is that the gov't in the UK wanted to offer this benefit to more than one airline, perhaps to reduce the chance of total service interruption.
Off the cuff, if the delivery was for Certus SatCOM, the Edge and the WVSS-II, one would think that FLYHT's revenue for hardware per plane would be in the neighbourhood of 55% of $30K+. The 13-install Loganair order should put at least $200K back into FLYHT's coffers for just the hardware.
With 17 installs to go, FLYHT should make their original investment back with just the UK Met hardware order.
Recent KRC report: "On 20/9/21, FLYHT acquired the Water Vapor Sensing System (WVSS-II) product line from SpectraSensors Inc. for US$500k. The acquisition was validated with the UK Met office intending to proceed with the install of 30 WVSS-II sensors on UK based aircraft starting in
2022/2023."
Based on this, we should expect to hear about the other 17 sensor installs soon.
From FLYHT's September investor presentation...
(Six) Meteorological agencies (UK, USA, Canada, Australia, Germany, Singapore): ~200 WVSS-II sensors over 5 years, plus annual $5M+ of SaaS is a $100M+ opportunity.
OEM Line-fit: 800+ sensors per year to OEMs is $500M hardware lifetime opportunity.
In the U.S., FLYHT has a new agreement with NOAA...
"Calgary, Alberta – September 12, 2023 – FLYHT Aerospace Solutions Ltd. (“FLYHT”) (TSX-V: FLY) (OTCQX: FLYLF), today announced that it was awarded, through FLYHT’s wholly owned U.S. subsidiary, FLYHT, Inc. contracts valued at US$500,000, with an additional US$2.8 million in options, by the National Oceanic and Atmospheric Administration (NOAA) to provide its water vapour sensor technology to help the U.S. National Weather Service (NWS) improve weather forecasting and warnings. The agreement is an expansion of FLYHT’s long-standing relationship with NOAA and a recognition of the important role that aircraft-based observations (“ABOs”) play in improving weather forecasting and warning models.
The agreement provides NOAA with an initial package of FLYHT-WVSS-II sensors that will be fully integrated with FLYHT’s Certus SatCom and AFIRS Edge multi-channel WQAR for real-time data transmission. In addition to the hardware, FLYHT will provide ABOs throughout flight, including during ascent, descent, and while en route. The initial hardware, funded with FY2023 appropriations, is expected to be installed before the end of summer 2024."