Firstly, thank you vendors for your valuable time at the show. As we noted last week, because of space limitations we can only summarize; however, IFExpress plans to devote complete Hot Topic subjects on some of the big deals in the upcoming months. We also note that IFExpress planned to dedicated two issues for APEX summaries. Wrong! We now need three and the third is to come next week.
APEX reports 2300 delegates and 73 airlines in attendance while most visitors enjoyed good, but unusual, Seattle weather. We again note that many show images are available by clicking the show image in this newsletter (to the right) and on the IFExpress/AIRFAX.com website.
Here we go:
Once again Geoff Underwood and his IFPL team knocked our collective socks off with 3 prototypes for new products: a near field communication (NFC) initiative (and eventual product) that permits chip-powered credit card sales (PIN enabled) via a swipe and a keypad. He demonstrated an ingenious Self Testing Audio Jack with built-in audio test via small LED – simply send out the correct tone and the light gives a go/no-go visual indication (BTW, no seat power required and the jack is no bigger that a standard jack). Hey, one person can check out a plane’s worth of audio with a walk down the aisle! Lastly, we should mention their 3 part breakaway audio jack. That’s right, 3 parts!Lower cost and no broken audio plugs – patent in works.
PlaneBill‘s Massimo DeSanctis, the App man has 18 apps now, one each for Apple iOS, Android, and Windows 7. We hear he is working on apps for WebOS and Blackberry as well. Check out the link for the list or www.planebill.com. Why not have him build or customize one for you!
Goodrich‘s Al McGowan told IFExpress they are planning bigger IFE packages for their customers, mostly with a retrofit focus. Interestingly, we expect new products as they cross pollinate with their Military technologies and other business elements. And, don’t forget the GA market as Goodrich has purchased Audio International.
digEcor continues to promote their L7 portable and are looking toward more solid state memory for increased functionality. Two bits of info: 1. Alaska does NOT report lower uptakes rates with Gogo onboard, and 2. We can’t tell you about their long term initiatives but one looks very cool. Adam Williams sent us his Tweet analysis of the APEX event and we think you Social Marketing followers will appreciate the results. Adam (and others) are on the leading edge of the next marketing revolution.
And speaking of Gogo (Shouldn’t that be Go-Go?), we spoke with Fran Phillips, Mary Rogozinski, and Steve Nolan who note that they see Ka as their potential answer to future satcom-based streaming entertainment. Further, their ATG4 upgrade will provide enough interim growth bandwidth with A/C antenna changes and small ground station mods. But what really caught our fancy was a very passenger friendly new feature called “Resumption of Play”. This is great new attribute that allows Gogo users to see the portion of the paid entertainment they missed because of, for example, landing. Use a code, plug it into their website and voila, you have not missed that great part in “When Harry Met Sally”! Don’t remember? – YouTube it!
The Astronics folks now have the USB inset power product in production and deliveries and installations are happening as we write. We should probably note another Astronics accomplishment – Teatro ZinZanni. We don’t normally mention vendor events but this one was a deal breaker for us. Described as “Love, Chaos, and Dinner”, this Seattle dinner theatre was the setting for the Astronics party. The venue’s website notes a description for the show there as “Kit Kat Klub on acid”, however, that is mild for the madness that ensued – we think they served dinner too but we don’t remember? Singers, musicians, transvestites, tumblers, acrobats, and who knows what else, the place (and event) was a hoot. We have saved the best for last but you will have to check out the Industry Good Sport of the Year via this link…and we ain’t kidding! Nice job everybody.
Footnotes:
Rumor has it that the reason Inflight Canada missed the show is because they are finalizing a big deal new product – Stay Tuned.
Last week we forgot to mention that Thales nice guy Dan Reed has retired (or should we say “is” retiring), however, we understand he will work on till the end of the year – dan.reed@us.thalesgroup.com
Integrated +5VDC output designed to power up to three independent passenger USB
devices simultaneously
EAST AURORA, NY, May 18, 2010 – Astronics Corporation (NASDAQ: ATRO), a leader in
advanced, high performance lighting, electrical power and automated test systems for the global
aerospace and defense industries, today announced a new product addition to their world leading
EMPOWER® in-seat power systems (ISPS) product line. The new EMPOWER® unit produces an
industry leading 200VA for each Personal Electronic Device (PED) and includes three Universal
Serial Bus (USB) power outputs for passenger devices such as smart phones, iPods, cameras, and
other standard +5 Volt devices. This is all accomplished in a unit smaller than previous generations
of the industry leading EMPOWER® product line.
This newest version of the EMPOWER® in-seat power system (P/N 1191-3x) is in direct response to
customer feedback and requests. Airlines around the world have asked Astronics to include more
features in their EMPOWER® products and to reduce size and weight. With more airlines installing
EMPOWER® systems in all classes of service and with the increase in single aisle EMPOWER® product
installations, size, weight and cutting edge features are paramount. In addition, as airlines around
the world offer off-aircraft passenger connectivity and other services, Astronics is experiencing an
increasing demand for their EMPOWER® in-seat power systems.
“Adding the +5 Volt USB output was a logical step as more passengers carry on electronic devices
and airlines deploy new services such as mobile boarding passes that depend on charged
passenger devices. We take seriously our valued airline customers requests,” said Dennis Markert,
Director, Business Development of Astronics Cabin Electronics. This new unit will allow use of up to
three laptops and power up to three USB devices simultaneously.
Now passengers have a wider range of personal devices that may utilize the unique features of the
EMPOWER® in-seat power system. With the EMPOWER® system from Astronics, airlines will no
longer receive calls from their valued passengers concerned that they will not have power available
during flight. These airlines will also be assured that the latest convenience services they offer their
passengers will be used to their fullest extent possible as mobile device and laptop charging status
will no longer be an issue. Astronics is the only in-seat power supplier providing a system that has
110VAC for passenger electronic devices and +5 Volt USB power available.
EAST AURORA, NY, May 18, 2010 – Astronics Corporation (NASDAQ: ATRO), a leader in
advanced, high performance lighting, electrical power generation / distribution and automated test
systems for the global aerospace and defense industries, today announced a new product addition
to their world leading intelligently managed power solutions. This new AC to DC power supply
converts 115VAC, 360Hz to 800Hz aircraft power to 150 Watts of +28VDC. The power is provided
by four individual +28VDC outputs current limited at 1.5Amps each. This is all accomplished in a
compact and lightweight product that meets the stringent requirements of the aviation environment
and the OEM’s. The outputs may be paralleled to create a single 150 Watt output and multiple units
may be used in parallel to create 300 Watts or 450 Watts with current sharing. The unit provides
hold-up of the outputs to 200 mSec so that connected devices stay powered during normal bus
transfers and power interruptions.
This new power supply (P/N 1314-3) is in direct response to increasing market demand and
customer feedback. Airline seat manufacturers, seat motor actuator manufacturers, in-flight
entertainment suppliers, and aircraft OEMs around the world have requested Astronics develop a
universal AC to DC power supply that addresses multiple applications. Using the same highly
reliable technology, high efficiency, and quality as other EMPOWER® products, Astronics has
developed a small and lightweight unit for multiple applications. As airlines continue to demand
smaller, innovative, and lightweight system architectures, Astronics continues to develop and
provide power solutions such as the 1314-3 150W DC Power Supply.
“Our customers bring us opportunities and we provide them with rapid innovative solutions. Attention
and responsiveness to our customer needs have propelled Astronics to our market leading position
for power products.” said Dennis Markert, Director, Business Development of Astronics Cabin
Electronics group.
Astronics is the market leader in bringing intelligently managed power to passengers and airline
personnel. Astronics EMPOWER® in-seat power systems are used to enhance passengers’ flying
experience by powering their personal electronic devices and laptop computers as well as aircraft in-
flight entertainment systems. The Company’s systems have been installed on over 140 airlines to
power over 500,000 seats.
EAST AURORA, NY, January 19, 2010 – Astronics Corporation (NASDAQ: ATRO), a leader in advanced, high performance lighting, electrical power management and automated test systems for the global aerospace and defense industries, today announced that it expects to record a fourth quarter non-cash, pre-tax charge of approximately $19.4 million for impairment of goodwill and other intangible assets related to its Test Systems business. As a result of this charge, the Company expects to report a net loss for the fourth quarter and the year ended December 31, 2009.
The impairment charge reflects lower than previously anticipated revenue and future cash flow from Astronics’ Test Systems business, which was acquired as part of the Company’s acquisition of DME Corporation in January 2009. Astronics has reduced its revenue outlook for the Test Systems business as compared with its initial assessment as a result of low new order bookings.
REDMOND, WA, October 19, 2009 – Astronics Corporation (NASDAQ: ATRO), a leader in advanced, high performance lighting, electrical power and automated test systems for the global aerospace and defense industries, launched its decorative Outlet Unit Cover for use with its EmPower® System 1235-X AC outlet units.
The 24 Karat gold-plated cover (part number 123505-2) provides a sophisticated finish. In addition, Astronics offer an un-plated, un-assembled kit (part number 123505-3) for installer custom finishing. This allows installers maximum flexibility in coordinating color and finish with cabin interior design motifs.
The outlet cover provides an elegant, well-appointed look in keeping with business jet décor.
Versatility was a key consideration in cover design. The new cover can be oriented to open and close in any installer-defined direction (up, down, left or right). An internal spring mechanism holds the cover door open or closed for user convenience and a contoured edge allows easy one-finger opening. In keeping with Astronics’ heritage as a leader in AC power for aircraft passengers, the new cover can easily be added to existing Astronics 1235-X outlet units already installed.
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a trusted leader in innovative, high performance lighting, power management systems for the global aerospace industry; automated diagnostic test systems, training and simulation devices for the defense industry; and safety and survival equipment for airlines. Astronics’ strategy is to develop and maintain positions of technical leadership in its chosen aerospace and defense markets, to leverage those positions to grow the amount of content and volume of product it sells to those markets and to selectively acquire businesses with similar technical capabilities that could benefit from our leadership position and strategic direction. Astronics Corporation, and its wholly-owned subsidiaries, DME Corporation, Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices. The Company routinely posts news and other important information on its website at www.Astronics.com.
For more information on Astronics and its products, visit its website at www.Astronics.com.
EAST AURORA, NY, October 19, 2009 – Astronics Corporation (NASDAQ: ATRO), a leader in advanced, high performance lighting, electrical power management and automated test systems for the global aerospace and defense industries, today announced in conjunction with its participation in the National Business Aviation Association 62nd Annual Meeting and Convention in Orlando, Florida, this week, that it has received FAA TSO for its 84015 series of LED Forward Position lighting assemblies.
The new lighting assemblies utilize high power LEDs in conjunction with advanced optics to produce luminance levels that exceed FAA requirements. Power consumption is dramatically reduced and dispatch reliability is significantly improved when compared with legacy incandescent lighting solutions. The lighting assemblies are designed to be drop-in replacements on existing aircraft or as line-fit equipment on the newest class of aircraft. These lighting assemblies can be found on the Embraer Phenom 300.
Mr. James S. Kramer, Executive Vice President of Astronics, commented, “These lighting assemblies are another example of Astronics’ engineering expertise in providing practical, cutting-edge lighting solutions for the aerospace market. These Forward Position light assemblies are a welcome addition to our already robust suite of aircraft lighting solutions that can be found on business, commercial and military aircraft around the world.”
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a trusted leader in innovative, high performance lighting, power management systems for the global aerospace industry; automated diagnostic test systems, training and simulation devices for the defense industry; and safety and survival equipment for airlines. Astronics’ strategy is to develop and maintain positions of technical leadership in its chosen aerospace and defense markets, to leverage those positions to grow the amount of content and volume of product it sells to those markets and to selectively acquire businesses with similar technical capabilities that could benefit from our leadership position and strategic direction. Astronics Corporation, and its wholly-owned subsidiaries, DME Corporation, Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices. The Company routinely posts news and other important information on its website at www.Astronics.com.
For more information on Astronics and its products, visit its website at www.Astronics.com.
REDMOND, WA, October 19, 2009 – Astronics Corporation (NASDAQ: ATRO), a leader in advanced, high performance lighting, electrical power and automated test systems for the global aerospace and defense industries, announced today the release of its 1235-8-XX AC Outlet Unit for use with EmPower® AC power supplies. The industry-leading passenger power outlet design was enhanced with additional versatility and user interface for today’s business jet operators.
The new design provides ready access to AC power in passenger seats, flight decks, and off-seat locations. The combined “power available” – green; and “system status” – white; indication LED on the faceplate is an intuitive visual prompt for users. In addition, a soft internal backlight LED provides visibility in a dark cabin or cockpit. And, with the addition of Swiss and Italian plug compatibility, the 1235-8- XX now accommodates plugs from 155 countries.
Developed in conjunction with aircraft and passenger seat manufacturers, the new 1235-8-XX Outlet Unit allows for maximum installation options and is compatible with the just released decorative Outlet Unit Cover available in 24 Karat Gold plating or un-plated. The outlet can be used with EmPower® AC power supplies including In-Seat Power Supplies (ISPS) and Seat Power Boxes (SPBs).
Designed for high reliability and worldwide versatility, the extremely robust 1235-8- XX outlet is ideal for today’s highly utilized business and commercial aircraft applications.
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a trusted leader in innovative, high performance lighting, power management systems for the global aerospace industry; automated diagnostic test systems, training and simulation devices for the defense industry; and safety and survival equipment for airlines. Astronics’ strategy is to develop and maintain positions of technical leadership in its chosen aerospace and defense markets, to leverage those positions to grow the amount of content and volume of product it sells to those markets and to selectively acquire businesses with similar technical capabilities that could benefit from our leadership position and strategic direction. Astronics Corporation, and its wholly-owned subsidiaries, DME Corporation, Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices. The Company routinely posts news and other important information on its website at www.Astronics.com.
For more information on Astronics and its products, visit its website at www.Astronics.com.
EAST AURORA, N.Y. – Aug. 11, 2009 – Astronics Corporation (NASDAQ: ATRO), a leader in advanced, high performance lighting, electrical power and automated test systems for the global aerospace and defense industries, announced today that its subsidiary, Advanced Electronic Systems Corp. (AES), has signed contracts with two Asian commercial airlines totaling approximately $7.4 million for its EMPOWER® In-Seat Power Supply System (ISPS). The contracts include intelligent power control systems, in-seat power converters, cables, and ancillary equipment that allow passengers to connect their personal electronic devices (PED) – including laptop computers – to AC power outlets installed in the aircraft. The systems are to be installed on both retrofit and new wide-body Airbus and Boeing aircraft. Deliveries, which initially began earlier this year, are expected to continue through mid-2011.
Commercial airlines throughout Asia continue to invest in upgrading and expanding their fleets. With this expansion, the airline customers are fulfilling passenger demand for EMPOWER® systems which enable the passengers to use their laptop and other devices during flight.
“We expect opportunities from this sector to continue over the next few years as competition among the airlines intensifies.” said Mark Peabody, AES Executive Vice President.
Astronics’ patented, state-of-the art, highly efficient and reliable power supply systems are used to power personal electronic devices, laptop computers as well as aircraft in-flight entertainment systems. The systems have been sold to over 125 commercial transport and business jet customers, representing the largest installed base of in-seat power systems in the industry.
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a trusted leader in innovative, high performance lighting, power management systems for the global aerospace industry; automated diagnostic test systems, training and simulation devices for the defense industry; and safety and survival equipment for airlines. Astronics’ strategy is to develop and maintain positions of technical leadership in its chosen aerospace and defense markets, to leverage those positions to grow the amount of content and volume of product it sells to those markets and to selectively acquire businesses with similar technical capabilities that could benefit from our leadership position and strategic direction. Astronics Corporation, and its wholly-owned subsidiaries, DME Corporation, Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices. The Company routinely posts news and other important information on its website at www.Astronics.com.
For more information on Astronics and its products, visit its website at www.Astronics.com.
EAST AURORA, N.Y. – Jul. 30, 2009 – Astronics Corporation (NASDAQ: ATRO), a leader in advanced, high performance lighting, electrical power and automated test systems for the global aerospace and defense industries, today reported sales of $47.0 million in the second quarter of 2009, which ended July 4, 2009, down 1.8% compared with sales of $47.9 million in the second quarter of 2008. Results for the 2009 quarter include DME Corporation, which was acquired by Astronics on January 30, 2009. For the 2009 six-month period, results include five-months of the financial results from operations of DME, reflecting the date of acquisition. Astronics’ organic business, excluding the recent acquisition, had sales of $34.3 million for the second quarter of 2009, down 28% from the 2008 second quarter. The second quarter of 2008 was the strongest sales quarter in history for Astronics’ organic business driven by exceptional cabin electronics sales.
Sales for the Company’s Aerospace segment in the 2009 second quarter declined 20.2% to $38.2 million, while sales for the Test Systems segment, which represents a portion of the DME business acquired in January 2009, were $8.8 million.
Second quarter 2009 income before taxes of $2.7 million included other income of $0.9 million as a result of an adjustment to the estimated fair value of a promissory note payable that is contingent on DME achieving certain 2009 revenue. Net of tax, the adjustment was $0.6 million, or $0.05 per share. Net income in the second quarter of 2009 was $2.0 million, or $0.18 per diluted share, compared with $5.1 million, or $0.48 per diluted share, in the same period the prior year.
Peter J. Gundermann, President and Chief Executive Officer of Astronics commented, “Sales for our aerospace business were affected by continued weakness in the business jet market and delays in airline retrofit programs. We have had weaker than expected orders for our test systems business mostly due to delays on contract awards; although we believe that there should be some progress on this front. We have taken steps over the last three quarters to address the challenges we face in this environment, including a significant reduction in our headcount resulting in at least $6 million in annualized savings. Nonetheless, we see several opportunities for our engineering design capabilities and innovative products and continue to invest in our future.”
Operating Results
Gross profit in the second quarter of 2009 was $8.7 million, or 18.6% of sales, compared with $12.1 million, or 25.3% of sales, in the second quarter of 2008. The contracted gross margin reflects lower sales volume in the organic business as well as low revenue levels for the acquired DME business. Included in the cost of goods sold was $6.4 million in engineering and development (E&D) costs which included $1.2 million associated with DME. E&D in last year’s second quarter was $5.8 million.
Selling, general and administrative (SG&A) expense was $6.4 million, or 13.7% of sales, in the second quarter of 2009, compared with $4.3 million, or 9.0% of sales, in last year’s second quarter. Included in SG&A for the 2009 second quarter was approximately $2.0 million of DME SG&A, which includes amortization of intangible assets related to the acquisition of $0.8 million.
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EAST AURORA, N.Y. – Mar. 2, 2009– Astronics Corporation (NASDAQ: ATRO) today announced that its previously reported results for the 2008 fourth quarter and full year ended December 31, 2008, have been revised to reflect the write off of all remaining assets related to its business with Eclipse Aviation, which last week informed its suppliers that it has suspended all business operations after deciding not to contest a motion by senior secured creditors to convert its bankruptcy proceedings to a Chapter 7 liquidation.
On February 12, 2009, Astronics reported its fourth quarter and full year 2008 results, which included a $7.5 million, or $0.46 per share, charge related to Eclipse. The charge was comprised of $1.0 million for accounts receivable and $6.5 million for inventory and equipment. At the time, the Company had $1.0 million of accounts receivable and $9.0 million of inventory and equipment related to Eclipse. In November 2008, Eclipse had filed for protection under Chapter 11 of the bankruptcy law. Its stated intention at that time was to reorganize and emerge from bankruptcy under new ownership. Based on this information, Astronics retained inventory and equipment totaling $2.5 million in anticipation of future business with Eclipse.
In light of the most recent information, specifically the change in bankruptcy status which occurred prior to Astronics’ filing of its financial statements, the Company recorded an additional pre-tax charge of $2.5 million for inventory and equipment related to the Eclipse business. The effect net of tax was an additional $1.6 million, or $0.15 per share, reduction in net income for the 2008 fourth quarter and full year compared with earlier released financial results. As a result, net loss for the fourth quarter of 2008 was $1.8 million, or $0.17 per diluted share, and net income for 2008 was $8.4 million, or $0.79 per diluted share. Revised consolidated financial data is included with this release.
Astronics also reaffirms its previous expectations for 2009 revenue to be in the range of approximately $230 and $245 million.
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a designer and manufacturer of high performance lighting and power management systems for the global aerospace industry; automated diagnostic test systems, training and simulation devices for the defense industry; and safety and survival equipment for airlines and airfields. Astronics’ strategy is to develop and maintain positions of technical leadership in its chosen aerospace and defense markets, to leverage those positions to grow the amount of content and volume of product it sells to those markets and to selectively acquire businesses with similar technical capabilities that could benefit from our leadership position and strategic direction. Astronics Corporation, and its wholly-owned subsidiaries, DME Corporation, Astronics Advanced Electronic Systems Corp. and Luminescent Systems Inc., have a reputation for high quality designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices. The Company routinely posts news and other important information on its website at www.Astronics.com.
Soon, not having broadband connectivity on a commercial flight will be as atypical — and frustrating — as not having it in a coffee shop or even in your office.”
