Adacel (ASX:ADA) is chasing growth from its three core products ((1) the recently acquired virtual air traffic controller system (2) Flagship "Aurora" air traffic management software/system, (3) Air traffic controller simulation software. with ADA PBT guided to be going backwards 20% to between $4.5 to $5 million USD in the 2023 June Year (2022 FY = $5.6 million).
The company frame the 20% drop in 2022/2023 PBT because they are chasing $100M USD worth of work due to be allocated in the next next 18-24 months.
ADA has the possibility of regaining investor confidence should it win-back the FAA Tower Simulation Support Contract (lost in 2018, with estimated annual value $4-$5 million USD), which is currently being tendered for.
The rationale why ADA should regain this contract is strong given its ownership of some of the software being used in the contract, however this is a US Federal Aviation Administration (FAA) decision, so its difficult to assess.
ADA should pick up one or two Aurora air traffic management software sales in its 2023 June Year. Sales of the virtual air traffic controller product are difficult to assess.
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