Adacel wins new defence deal

ASX listed Adacel Technologies has announced a $4.3 million contract with the United States Air Force (USAF).

The one-year deal will see the Melbourne-based company provide maintenance and support services for the USAF’s Tower Simulation System (TSS) air traffic control training simulator.

The USAF initially purchased the TSS for use on 94 sites from Adacel in 2002 for around $75 million.

The deal, which includes options for extension through to 2011, will also see the company provide a new web-based integrated data environment to facilitate direct access to support-related documents, performance metrics and contract plans.

According to managing director, Silvio Salom, the deal was significant for its recurring revenue potential.

“This is the beginning of an annuity stream for us,” he said. “Each year the USAF chooses to exercise its option means additional revenue of up to $5 million.”

The defence deal would also help it capture further opportunities in the wider US market, Salom said.

“We’re certainly trying to capture the civil aviation market there,” he said. “It’s another very large market with around 400 airports around the country.”

Adacel was also exploring opportunities with Lockheed Martin to develop voice recognition software to automate cockpit functions for the Joint Strike Fighter currently under development, Salom said.