Emerging connectivity kingpin EMS Technologies has shrugged off the prevailing economic gloom, projecting revenue growth of 15-20 per cent for its 2009 financial year.
The Atlanta-based company is rapidly positioning itself as a full-spectrum air-to-ground connectivity provider through a programme of acquisitions and partnerships.
Three weeks ago it announced that it was buying New Jersey company Formation, which makes a range of rugged servers and cabin wireless access points to support passenger communications via terrestrial and satellite networks. Formation customers include Aircell, to which it is supplying the airborne central processor unit (CPU) and cabin wireless access point (CWAP) for the Gogo air-to-ground broadband system now being trialled by American Airlines.
Last year EMS Technologies also acquired Iridium satcoms service provider Sky Connect and entered into a partnership with Starling of Israel to produce Ku-band antennas for Panasonic’s emerging eXconnect broadband service for airline passengers. Ottawa-based subsidiary EMS Satcom is one of the leading suppliers of Inmarsat L-band avionics and antennas to the government, military and business/VIP markets, and a provider of core technology for air transport satcoms leaders Honeywell and Rockwell Collins.
“Our guidance for the full year 2009 is based on expectations of organic revenue growth of 15-20 per cent for our satcoms and defence sectors,” chief executive Paul Domorski said yesterday. “We also believe that the profitability of all of our businesses will increase in 2009 as a result of a favourable mix of contracts and successful initiatives to reduce costs and improve operating margins.”
Referring to the company’s absorption of Formation, Sky Connect and UK-based satellite machine-to-machine communications provider Satamatics, Domorski continued: “Sales and earnings for each grew more than 20 per cent in their most recent fiscal years. They are expected to contribute combined revenues of $75-80 million in 2009. Overall, our consolidated earnings before interest, incomes taxes, depreciation and amortisation are expected to grow more than 40 per cent compared with 2008 and to exceed $50 million for the year.”
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