Q: There is a news item that GIB.A has been awarded a contract to produce a "virtual flight data recorder". This sounds exactly like what FLY has been trying to sell for years but it never really got off the ground (sorry). Do you see GIB.A fairing better and what are the implications for FLY.
Thanks
Ian
Thanks
Ian
5i Research Answer:
Nice pun! GIB.A is a much larger company ($31.6B market cap) vs. FLY at a $24M market cap. CGI has a revenue base of ~$14B and an equity position of $8.0B, whereas FLY generated $23.6M in sales over the past 12 months and has an equity position of $3.3M. Given this, we would see GIB.A as having a higher chance of successfully marketing and selling its virtual flight data recording systems. FLY is quite small, and if it can find a niche area that allows it to increase sales, that is likely one of its better chances at success, however, due to its small size it is likely to be out-competed by better-capitalized companies.