AEM’s newly launched Forest Service radio, the MTP136D, is flying off the shelves, as the electronics manufacturer Structural Monitoring Systems (ASX: SMN) subsidiary signed a contract with a Canadian-based helicopter provider within a month of its launch.
The contract has been signed with Yellowhead Helicopters, based in British Columbia and Alberta. For over fifty years, it has been a key player in delivering commercial helicopter services and solutions to the public, industry, and the Canadian government.
AEM will ship its airborne radios to Canada by February 1, 2024, to be mounted on 34 helicopters. Yellowhead Helicopters has committed to upgrading its entire fleet to the MTP136D, with the implementation scheduled to start in early 2024.
AEM Director of Sales and Marketing Tony Weller, said, “This new radio helps to modernise tactical aerial firefighting communications with the industry’s most technologically advanced and up-to-date panel-mount solution. We’re proud to bring such a sophisticated and capable unit to market and help operators successfully complete some of the harshest missions out there. Getting our new radio into service with Yellowhead is an important step for AEM in helping provide aerial firefighters and other multi-mission operators with best-in-class communication solutions.”
Earlier this month, AEM unveiled a new panel-mount radio, MTP136D, designed for special-role and multi-mission platforms in Kelowna, British Columbia, on November 8. It focused on meeting the needs of the U.S. Forest Service and aerial firefighting operators.
The MTP136D is designed to ensure quality performance during lengthy and demanding firefighting environments. It’s easily integrated for tactical systems and platform upgrades and is a plug-and-play replacement for existing legacy radios. The successful launch of the MTP136D is part of AEM’s continued investment in a growing suite of avionics and audio products in the Special Missions Aviation sector. It builds on the performance of its contract manufacturing business.
Yellowhead Helicopters Director of Supply Chain Management, Rob Parson, commented, “Integrating this new radio across our whole fleet will ensure our specialist operators have the most up-to-date tools and equipment necessary to complete complex missions for our customers.”
In Q1 FY24, SMS reaped the benefits of its investment in AEM and its overall product portfolio. SMS’s gross revenue was $6.08 million, up 13% on Q1 FY23 and 2% on Q4 FY23. AEM recorded an EBITDA of $600k, up 41% on Q1 FY23. Overall, the Company saw a positive net cash flow of $152k and ended the quarter with $961k in cash.
While it has a decent pipeline of products and expansions, the Company does not expect the new Canadian contract to have a significant material impact.
SMS Executive Chairman Ross Love added, “The immediate support from Yellowhead Helicopters is clear evidence of its superior performance and capabilities and evidence of AEM’s ability to identify gaps in the market and to work with our customers to ensure we are providing them with the highest quality products that are fit for purpose and designed to perform even in the most extreme and demanding conditions.”
Besides AEM’s wins, SMS is also in talks with well-known names in the aviation industry, namely United Airlines, Qantas, and Sun Country Airlines, for adopting its CVM (Comparative Vacuum Monitoring) technology to improve aviation safety.
With AEM locking in the Canadian Helicopter provider within a month of its new product launch, the Company’s growth prospects appear to be looking up.
Alinda is a Business Reporter for The Sentiment
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