Replies to post #2893 on Arcam AB fka AMAVF

[charlie T colton]

RE: Was Paolo Gennaro wrong?

Best guess right now, I think what he said was premature, or they had the machines without a formal announcement.
Again, best guess, the order was in the works or already completed.

I've been looking for an announcement from Avio Aero, nothing yet. I expect that someone will offer an explanation sooner or later.


Arcam - Kommentar om ordern av 10 EBM-system till Avio Aero - 22 december 2015

Using Google translate:
Arcam - Comment on the order of 10 EBM systems Avio Aero
December 22, 2015

The analysis below comment refers to Arcam's press release today, if the obtained order from Avio Aero, read here.

Arcam gets the morning an order for 10 EBM systems from Avio Aero in Italy, it is Arcam's largest order to date. The second largest was 6 systems and also went to Avio, then 5 systems that went to the Italian Lima that manufactures orthopedic implants. Where large orders coming from confirming the company's claim against the right segment an aerospace and medical (orthopedic implants).

Avio already had about 10 systems and now doubles its fleet and we believe that Avio has capacity for a total of around 60 systems on their site down in Italy. The order b edömer we be around 50-60 million in revenue, but the company communicates not selling. Avio has worked with Arcam for a long time and is now ramping up capacity to roll off the production of eg turbine blades to the low pressure turbine in GE engine n GE9X for including Boeing 777 X planes, which will fly commercially around 2019 - 2020. Considering leditiderna and that the "underlying" aircraft will be in the air within a few years, we have been waiting for the right Avio will make an additional order of Arcam's EBM systems.

With the company's information policy not to press releases individual orders is the official order intake for Q4 is now just 10 system, but we assume that it also received a number of a system orders. In Q4 2014, orders were 21 systems and it delivered 15 systems. We previously expected a strong order intake for Q4 and with today's large order, we confirmed that one of Arcam's largest customers, as well as one of the largest engine manufacturers are investing in Arcam's EBM technology.

Introduce Equity ResearchAnalysts
Viktor Högberg
[e-mail]



Viktor Högberg should know.

[pdb2]

Good catch, I noticed that discrepancy myself. I had assumed that the earlier quote was anticipating this 10 printer buy, was PREMATURE and simply reflecting what he knew would be the shorterm printer situation for Avio.

But if Charles's second possible suggestion is true, that he was reflecting current realty and the printers have already been delivered that would be even better news. (1) It would mean the printers are delivered and ready to go which would suggest more current needs than the in the future 9x, possibly the leap. (2) More importantly, if delivered, then they can be booked into revenue and might suggest a nice revenue boost especially if they are the more highly margined printers which would suggest a real good ER. A nice pop now on the announcement and on ER day when the good news is booked in investor psyche.


Hope the already delivered explanation is the right one for the above reasons but think it was an advance statement and that the deliveries and booking will be in the future. We shall see, but either way great news that the first GE bulk order is now booked.

Thanks for all the good and accurate info you give us. Far more the know that I am, but I do know what rings true.