Eclipse’s Avio NG On Schedule, but Funding Questioned

AINalerts » November 8, 2007
November 8, 2007, 10:33 AM

Eclipse Aviation’s Avio NG avionics suite remains on schedule for FAA certification in mid-November, according to an Eclipse spokesman, and an Eclipse 500 fleet customer told AIN, “We believe that Avio NG will be certified this month.” Eclipse investor Mike Press, who owns an Eclipse 500 and sells Eclipse positions, wrote on his Web site that certification testing has begun and the first Eclipse 500 with Avio NG, S/N 105, is in production and will be delivered next month or January. Press also wrote that “Eclipse is working through its production ramp up, but at a slower pace than it projected two months ago. It is still not at 30 per month and probably will not reach this rate until the end of the year. As it has not reached this rate, it will probably need to raise some more capital to see it through to profitability.” Analyst Boenning & Scattergood seemed to confirm this in a report issued yesterday on Avio NG display maker Innovative Solutions & Support: “We are downgrading shares of IS&S to Market Perform, believing that the slower than expected production ramp at Eclipse Aviation, IS&S’s largest customer, will negatively impact IS&S’s operating results in 4Q07 and F08. Our due diligence suggests that Eclipse Aviation has not yet reached the one-plane-per-day production mark and the company may be forced to seek an additional round of financing to make it through the remainder of 2007.”

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