boeing contract increases upside potential

For those who hold Adacel or are interested in buying, it is worth paying close attention to the news releases on Adacel's website (www.adacel.com). Adacel only releases firm contracts worth over $1mill to the ASX, but the website shows that Adacel has recently been selected by Boeing and Rockwell Collins to develop a cokpit voice control system for specific aircraft/cocpits (piggy-backing on Adacel's 'voice activated cokpit' developed for the Joint Strike Fighter). My guess is that if Adacel can demonstrate to Boeing and Rockwell Collins that Adacel's voice control technology works to required specifications in the relevant aircraft/cokpits, then substantial licensing revenue will follow. If Adacel's VAC system is certified, then the stock is also likely to reflect a takeover premium. Flight testing and certification will take place over the course of 2008.

So, in relation to ADA's voice control technology, the company could soon be receiving licensing revenue from three sources:

(1) Lockheed Martin (JSF)
(2) Boeing (Apache Helicopter)
(3) Rockwell Collins (various flight management systems)

It would also be my guess that where these three companies lead, others will follow.

And, as mentioned in previous posts, Adacel is due this FY year to start recieving licensing revenue from CAE in relation to Adacel's ATCiB product. Management has has said that this product alone has the potential to generate $50mill in licensing revenue over the next 8 years ($6.25mill per year). However, this is small fry compared to the potential licensing revenue from Adacel's Voice-Activated-Cocpit (VAC) product.

NB: HC profanity filter prohibits me from spelling 'cocpit' correctly