important 55mill dollar faa contract , page-2

For those wanting to do their own calcs on the value of this contract, Adacel's typical profit margin for MaxSim contracts is now around 40%.

So this contract alone is likely to generate EBITDA in the region of $20mill. Most of this profit is likely to fall in FY09 and FY10, but the June half of FY08 is also likely to see a big boost.

This contract covers only around half of the simulators that the FAA will eventually need, so I think there is a high probability that Adacel will receive a similarly-sized follow on contract in the next 2 years.

With revenue from staffing contracts, Lockheed martin, and ATCiB also on the rise, I think Adacel stands a good chance of generating double digit NPAT figures from FY09 onwards.