TORONTO, May 24, 2017 (GLOBE NEWSWIRE) — Star Navigation Systems Group Ltd. (CSE:SNA) (CSE:SNA.CN) (OTCBB:SNAVF) (“Star” or the “Company”), is pleased to provide a further update on its STAR-M.M.I. ™ (“MMI”) activities.
As released earlier (see Press Release re Multi-year Agreement April 20, 2017), MMI continues to benefit from good relationships that it has developed over the past few years with several major aerospace companies. Since 2014, MMI has developed, produced and maintained high end displays under ad-hoc purchase agreements. These displays are primarily deployed worldwide in military applications such as the U.S. Navy’s P-3 Orion program, but are also utilized in civilian aircraft and helicopter retrofits.
Jean-Louis Larmor, Star’s COO said:
“In addition to the recent multi-year agreement for repairs and maintenance of MMI legacy displays, refurbishment orders have been received from Northrop Grumman Italy, and another US customer, Blue Aerospace. These ongoing contracts with large multi-national corporations support Star’s forward planning from both a revenue and resource allocation standpoint. Last week, an additional Display build contract from a long standing Japanese customer, Jepico Corporation, was received for its customer, Fujitsu. Although no long-term agreement is in place with Jepico, it has been a customer on a piece by piece basis since 2014.”
Based on past order volumes, and current pricing, projected total revenue from the maintenance agreements, the new build orders and the new STAR-M.M.I. ™ displays business is projected to reach approximately C$910,000 for CY 2017, with net income (total MMI revenues – cost of labour, parts, rent and depreciation) of approximately C$544,000.
Historically, net income from MMI activities was C$ 237,537 for CY 2014, C$ 185,268 for CY 2015 and C$ 135,950 for CY 2016. The 2016 year was adversely impacted by the suspension of repair activities by our largest customer during the contract renegotiation period. Those activities have now resumed and are subject to a negotiated price increase.
Jean-Louis Larmor, continued:
“Star has two lines of activities, STAR-M.M.I. ™ and STAR- A.D.S. ®. The STAR-M.M.I. ™ business utilizes our engineering expertise in avionics. Its historical performance and projected revenue numbers improve Star’s position as a whole. However, our attention is primarily focused on developing and improving the STAR-A.D.S. ® activities, which continue to generate negative income for the Company as a whole. In order for it to become our main source of revenue and achieve widespread industry acceptance, additional sales are required.”
About Star Navigation:
Star Navigation Systems Group Ltd. owns the exclusive worldwide license to its proprietary, patented In-flight Safety Monitoring System, STAR-ISMS®, the heart of the STAR-A.D.S. ® System. Its real-time capability of tracking performance trends and predicting incident-occurrence enhances aviation safety and improves fleet management while reducing costs for the operator.
Star’s MMI Division designs and manufactures high performance, mission critical, flight deck flat panel displays for defence and commercial aviation industries worldwide.
Certain statements contained in this News Release constitute forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “expected” and similar expressions, as they relate to Star or its management are intended to identify forward-looking statements. Such statements reflect Star’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Star’s actual performance or achievements to vary from those described herein. Should one or more of these factors or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Star does not assume any obligation to update these forward-looking statements, except as required by law.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of the content of this release.
Please visit www.star-navigation.com
Jean-Louis Larmor, (416) 252-2889 Ext. 221 Jeanfirstname.lastname@example.org Gold Feather Marketing Group Attn.: Anahadjeet Garewal (647) 409-3434 email@example.com