Barnabus2, I try to keep an eye on what is going on in the industry, FATS lost money in its last Q on lower sales, and IES is consolidating its operations and moving to Ann Arbor, MI.
I copied their PR's below.
Doug
Arotech Consolidating Its Simulation Group - Moving IES from Denver to Ann Arbor; Relocation of IES Interactive Training Will Allow for Expanded Capabilities and Potent Market Position in Growing Interactive Training Industry
Update: 9:40 AM ET Feb 14, 2006
ANN ARBOR, Mich., Feb 14, 2006 (BUSINESS WIRE) -- Arotech Corporation (NasdaqNM:ARTX) announced today that it is consolidating its Simulation Training operations by moving its IES Interactive Training subsidiary to Ann Arbor, Michigan. The relocation of IES, which will continue to operate under the IES brand name, will facilitate the strengthening of Arotech's Simulation and Security Division by consolidating its two simulation companies, IES and FAAC. The IES move is expected to be completed by June 2006.
Arotech expects to realize significant product synergies in addition to the clear cost savings this move will create. Each company brings its own unique capabilities to the union, IES with its leadership in interactive video scenario creation and training and FAAC with its extensive expertise in digital graphics and 3D training environments.
"This move has been contemplated for some time, and the more we communicate the possibilities between companies, the more excited we become over bringing our respective strengths together. IES will help to complete many of our vehicle simulator offerings with professional training and courseware offerings," said Dean Krutty, President of Arotech's FAAC Incorporated subsidiary. "Furthermore, we anticipate synergy at all staff levels to provide an environment conducive to the research and development of new products and services for professional trainers in law enforcement, public safety and the military - ultimately benefiting each corporation and the customers they serve."
"We look forward to the move. By working together with FAAC, IES will be able to create new products and to attain new market segments in the interactive training industry that were difficult to reach prior to this partnership," said Rob McCue, Vice President of IES.
"This consolidation will create an advanced comprehensive interactive training complex which we expect will further enable us to enhance our position in the simulation training world," said Robert S. Ehrlich, Arotech's Chairman and CEO. "I would like to take this opportunity to thank Greg Otte, IES President, for his contribution to the successful development of IES over the years. Greg has decided not to relocate to Michigan, and will pursue other business opportunities."
About Arotech's Simulation and Security Division
Arotech's Simulation and Security Division develops manufactures and markets advanced hi-tech multimedia and interactive digital solutions for training of military, law enforcement, security and private industry personnel. The division's fully interactive driver-training systems feature state-of-the-art vehicle simulator technology enabling training in situation awareness, risk analysis and decision making, emergency reaction and avoidance procedures, and conscientious equipment operation. Over 100,000 drivers have been trained on its installed base of 244 driving simulators. The division also provides pilot decision-making support software for the F-15, F-16, F-18, and JSF aircraft as well as simulation models for the ACMI/TACTS air combat training ranges. In addition, the division's use-of-force training products and services allow organizations to train their personnel in safe, productive and realistic environments.
Arotech's Simulation and Security Division consists of FAAC Incorporated and IES Interactive Training Inc.
About Arotech Corporation
Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and security markets, including multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Armor, Simulation and Security and Battery and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Auburn, Alabama, and research, development and production subsidiaries in Alabama, Michigan, California and Israel
February 14, 2006 - 4:36 PM EST
Firearms Training Systems, Inc. Reports FY06 Third Quarter Revenue and Earnings
Firearms Training Systems, Inc. (OTC: FATS) today reported earnings for the third quarter of its fiscal year ending March 31, 2006.
Revenue for the third quarter was $16.6 million versus $21.5 million for the same period of the previous year. Operating income for the third quarter was $0.8 million versus $3.1 million for the third quarter of its 2005 fiscal year. Third quarter net loss applicable to common stockholders was ($0.1) million, or $0.00 per diluted share, compared with a net income of $1.1 million, or $0.02 per diluted share, for the same period of the previous year. The decline in revenue during the quarter is attributed to timing of new orders. International sales declined $4.9 million primarily due to the near completion of a large, long-term, percentage-of-completion contract in fiscal 2005.
Year-to-date revenue was $55.9 million versus $60.4 million for the same period of the previous year. Operating income for year-to-date was $4.2 million versus $7.3 million for the same period in fiscal 2005. Year-to-date net income applicable to common stockholders improved by $0.8 million to $1.0 million, or $0.01 per diluted share, compared with a net income of $0.2 million, or $0.00 per diluted share, for the same period of fiscal 2005. This improvement reflects lower debt costs and the elimination of mandatory preferred stock dividends associated with our prior Series B Preferred Stock.
Ronavan R. Mohling, the Company's Chairman and Chief Executive Officer stated, "Even though the quarter's revenue was less than expected, we feel good about continued momentum in new orders. We are very pleased that new bookings for the quarter were $29.0 million. Year-to-date new bookings are $63.4 million, an increase of 19% versus the same period last year. As a result of higher bookings, our backlog at the end of December was $66 million, an increase of $13.8 million from last year. New bookings from our long-time customers, including the UK Ministry of Defence, the New Zealand Army and the Australian Defence Force, demonstrate the continued strength of our strategic relationships. Our R&D commitments, operational improvements and quality initiatives remain on track."
FATS, Inc., a subsidiary of Firearms Training Systems, Inc. (OTC: FATS), is a leading technology company providing fully-integrated, simulated training to professional military and law enforcement personnel. Utilizing quality engineered simulated weapons, FATS' state-of-the-art virtual training solutions offer judgmental, tactical and combined arms experiences. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Netherlands and United Kingdom. The ISO-certified company celebrated its 20th anniversary in 2004. Visit www.fatsinc.com to learn more.
Except for financial information contained in this press release, the matters discussed may consist of forward-looking statements under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking statements, including statements regarding future events or the future financial performance of the Company, is necessarily subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors including those discussed above are: general business and economic conditions; the Company's success in competing for new contract awards; customer acceptance of and demand for the Company's new products; receipt and delivery of a sufficient level of orders from new and existing customers as well as satisfactory completion of delivery of a sufficient portion of backlog; the Company's overall ability to design, test, and introduce new products on a timely basis; the cyclical nature of the markets addressed by the Company's products; and the risk factors listed from time to time in documents on file with the SEC. When used in this release, the words "believes," "estimates," "plans," "expects," "should," "will," "may," "might," "anticipates" or similar expressions as they relate to the Company, or its management, are intended to identify forward-looking statements. The Company, from time to time, becomes aware of rumors concerning the Company or its business. As a matter of policy, the Company does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and unsubstantiated information regarding the Company. The Company complies with Federal and State law applicable to disclosure of information concerning the Company. Investors may be at significant risk in relying on unsubstantiated information from other sources.
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AI
