Canadian flight simulator and training company CAE says it has sold three full-flight simulators to Lion Air in Indonesia for $38-million, raising its total sold for the year to 19.
With the sale, the Montreal-based company is one short of the target it set for the fiscal year ending March 31. CAE said Monday that, under the deal, it will provide one simulator for the ATR72-500 aircraft and the other two for the Boeing 737-900ER.
The agreement also includes two CAE Simfinity Integrated Procedures Trainers. The Boeing simulators, and the trainers, will be delivered in 2011 and the other simulator will arrive at a later date, the company said.
"We are delighted that Lion Air has again placed their confidence in CAE's advanced technology flight simulation solutions," said Jeff Roberts, CAE's group president of civil simulation products, training and services.
"Lion Air has been one of the fast-growing carriers in the region and we look forward to meeting their pilot training needs as they further expand their fleet."
Analyst Benoît Poirier of Desjardins Securities said the order is positive and suggest the company will likely achieve its target for the year.
"We are confident that the company will meet its forecast given that to the best of our knowledge, CAE has never missed its full flight simulator order guidance," he wrote in a report.
Failure to obtain an order for one simulator would not be material since it would generate $13-million in revenue and a half cent per share in earnings, Mr. Poirier added.
The company will unveil its fiscal 2011 order guidance May 13. Mr. Poirier expects 17 orders for that year, for delivering in fiscal 2012. Anything more than that could boost the company's shares, he said.
He has a buy rating with a target price of $12.
On the Toronto Stock Exchange, CAE's shares gained 1 cent to $9.47 in morning trading.
CAE is a leading civil and military aerospace simulator and training company with annual sales exceeding $1.6-billion. It employs more than 6,500 people in 20 countries.