Finland selects Aeronautics Orbiter

Aeronautics has won a large tender in Finland for supplying 30-45 tactical UAVs to Finland’s Ground Forces. Three Israeli companies competed in the tender, which began a year ago – Aeronautics, Elbit Systems and BlueBird.

According to Flight Global 

A €23 million ($30 million) contract is in the final approval phase and is expected to be signed soon.

Earlier this year Aeronautics founder and CEO Avi Leumi  stepped down 14 years after founding the company.

“Globes” revealed that KCPS & Co. stated in its financial report for the third quarter of 2011 that Aeronautics was in breach of part of the financial covenants for the loan to the company, and talks were underway to solve the problem.KCPS adds,

“The company, especially at the solo level, has significant cash flow problems, due in part to the nature of the defense market. Most of the cash flow shortfalls are due to financing for large projects, and dependence on a small number of customers at any particular point in time. At the same time, the company has obtained projects through tenders, which make it more difficult to make long-term plans, and cause severe volatility in revenue compared with a fixed cost base.”