In the Q4, Tat Technologies Ltd's corporate clients experienced a decline by -10.73 % in their costs of revenue, compared to a year ago, sequentially costs of revenue were trimmed by -1.99 %. During the corresponding time, Tat Technologies Ltd recorded a revenue increase by 33.68 % year on year, While revenue at the Tat Technologies Ltd's corporate clients fell by -1.79 % year on year, sequentially revenue grew by 3.01 %.
Customers of Tat Technologies Ltd saw their costs of revenue decline by -10.73 % in Q4 compare to a year ago, sequentially costs of revenue were trimmed by -1.99 %, for the same period Tat Technologies Ltd recorded revenue increase by 33.68 % year on year,
Tat Technologies Ltd's Comment on Sales, Marketing and Customers
TAT targets both the commercial and defense markets for aviation and ground
applications. Our customers include commercial manufacturers of military equipment,
commercial airlines, aircraft manufacturers, military forces, defense industries,
and other manufacturers of electronic systems, aviation units and machinery
in the U.S., Europe, Asia, South America and Israel.
Major Customers
OEM Customers
TAT provides, primarily through Gedera, OEM services worldwide to customers
in the commercial, defense and industrial markets. TAT currently sells its OEM
products and systems to approximately 200 commercial and military aircraft manufacturers
and defense contractors, and the U.S. and Israeli governments.
TAT’s leading OEM customers are set in the following table:
System manufacturers/integrators and Defense Contractors
Liebherr-Aerospace, Thales, Honeywell International, Rafael, Elbit, IAI, Lockheed,
EADS, Eaton Aerospace, Parker Hannifin Corporation.
Industry players
Kodak (Creo), IBM
The development projects and purchasing processes of many of TAT’s OEM
customers are lengthy and complex and accordingly, involve long term supply
contracts with several of its material customers. These agreements provide for
delivery schedules that are customized for the relevant product or service.
With some of its customers, TAT enters into master purchase orders in which
the anticipated supply quantities as well as the prices for the supplied products
are determined for a certain period, and the actual purchase orders are fulfilled
based on customer demands from time to time. In addition, TAT also enters into
master agreements that determine supply quantities and prices for a set period,
but under which the customer is not obligated to purchase any quantity of products.
MRO Customers
TAT services approximately 200 MRO customers, primarily through Limco and Piedmont,
including major U.S. domestic and international airlines, air cargo carriers,
maintenance service centers, the U.S. military and navy and other military air
forces. In this capacity, TAT is not a party to any OEM manufacturing contracts,
and acts solely upon orders received from its MRO services’ customers.
TAT’s leading MRO customers are set in the following table:
Domestic and International Airlines and Air Cargo carriers
Singapore Airlines, Air France-KLM, SAS, Swiss, EL AL, Delta, United, US Airways,
Air Canada Jazz, Republic Airways, Expressjet, DHL, Austrian Airlines, TAM,
Saudia, Interjet, Thai, Korean Air, Air India, FedEx and Cargolux.
Maintenance Service Centers
Fokker, Honeywell International, Kellstrom Commercial, Aerokool, Lufthansa Technik,
UTAS-Hamilton, SR Technics, Evergreen Aviation Component Services, Gulfstream.
Government and Air forces
U.S. Army, Air Force and Navy; Israeli Air force; NATO Air-forces
Due to the long term relationships of TAT with many of its customers, their
relative financial stability and their loyalty to TAT, TAT anticipates that
the risk of major customer terminations is low. TAT also makes significant efforts
to penetrate new markets and to broaden its customer base in order, among other
things, to reduce the risk of relying on a small number of customers.
Many of TAT’s contracts are competitively bid and awarded on the basis
of technical merit, personnel qualifications, experience and price. TAT also
receives some contract awards involving special technical capabilities on a
negotiated, noncompetitive basis due to TAT’s technical capabilities.
TAT provides products under government contracts that usually require performance
over a period of several months to several years. Long-term contracts for the
U.S. military may be conditioned upon continued availability of congressional
appropriations. Variances between anticipated budget and congressional appropriations
may result in a delay, reduction or termination of these contracts.
The vast majority of the governmental contracts to which TAT is party to are
fixed-price contracts, some of which contain fixed price escalation mechanism.
Under these contracts TAT agrees to perform specific work for a fixed price
and, accordingly, realizes the benefit or detriment to the extent that the actual
cost of performing the work differs from the contract price. The allowable government
contract costs and fees of TAT are subject to audit and may result in non-reimbursement
of some contract costs and fees. While governments reserve the right to conduct
further audits, audits conducted for periods through fiscal year 2014 have resulted
in no material cost recovery disallowances for TAT.
The eligibility of TAT to perform under its government contracts requires TAT
to maintain adequate security measures. TAT has implemented security procedures
that it believes adequately satisfies the requirements of its current government
contracts.
Tat Technologies Ltd’s Comment on Sales, Marketing and Customers
TAT targets both the commercial and defense markets for aviation and ground
applications. Our customers include commercial manufacturers of military equipment,
commercial airlines, aircraft manufacturers, military forces, defense industries,
and other manufacturers of electronic systems, aviation units and machinery
in the U.S., Europe, Asia, South America and Israel.
Major Customers
OEM Customers
TAT provides, primarily through Gedera, OEM services worldwide to customers
in the commercial, defense and industrial markets. TAT currently sells its OEM
products and systems to approximately 200 commercial and military aircraft manufacturers
and defense contractors, and the U.S. and Israeli governments.
TAT’s leading OEM customers are set in the following table:
System manufacturers/integrators and Defense Contractors
Liebherr-Aerospace, Thales, Honeywell International, Rafael, Elbit, IAI, Lockheed,
EADS, Eaton Aerospace, Parker Hannifin Corporation.
Industry players
Kodak (Creo), IBM
The development projects and purchasing processes of many of TAT’s OEM
customers are lengthy and complex and accordingly, involve long term supply
contracts with several of its material customers. These agreements provide for
delivery schedules that are customized for the relevant product or service.
With some of its customers, TAT enters into master purchase orders in which
the anticipated supply quantities as well as the prices for the supplied products
are determined for a certain period, and the actual purchase orders are fulfilled
based on customer demands from time to time. In addition, TAT also enters into
master agreements that determine supply quantities and prices for a set period,
but under which the customer is not obligated to purchase any quantity of products.
MRO Customers
TAT services approximately 200 MRO customers, primarily through Limco and Piedmont,
including major U.S. domestic and international airlines, air cargo carriers,
maintenance service centers, the U.S. military and navy and other military air
forces. In this capacity, TAT is not a party to any OEM manufacturing contracts,
and acts solely upon orders received from its MRO services’ customers.
TAT’s leading MRO customers are set in the following table:
Domestic and International Airlines and Air Cargo carriers
Singapore Airlines, Air France-KLM, SAS, Swiss, EL AL, Delta, United, US Airways,
Air Canada Jazz, Republic Airways, Expressjet, DHL, Austrian Airlines, TAM,
Saudia, Interjet, Thai, Korean Air, Air India, FedEx and Cargolux.
Maintenance Service Centers
Fokker, Honeywell International, Kellstrom Commercial, Aerokool, Lufthansa Technik,
UTAS-Hamilton, SR Technics, Evergreen Aviation Component Services, Gulfstream.
Government and Air forces
U.S. Army, Air Force and Navy; Israeli Air force; NATO Air-forces
Due to the long term relationships of TAT with many of its customers, their
relative financial stability and their loyalty to TAT, TAT anticipates that
the risk of major customer terminations is low. TAT also makes significant efforts
to penetrate new markets and to broaden its customer base in order, among other
things, to reduce the risk of relying on a small number of customers.
Many of TAT’s contracts are competitively bid and awarded on the basis
of technical merit, personnel qualifications, experience and price. TAT also
receives some contract awards involving special technical capabilities on a
negotiated, noncompetitive basis due to TAT’s technical capabilities.
TAT provides products under government contracts that usually require performance
over a period of several months to several years. Long-term contracts for the
U.S. military may be conditioned upon continued availability of congressional
appropriations. Variances between anticipated budget and congressional appropriations
may result in a delay, reduction or termination of these contracts.
The vast majority of the governmental contracts to which TAT is party to are
fixed-price contracts, some of which contain fixed price escalation mechanism.
Under these contracts TAT agrees to perform specific work for a fixed price
and, accordingly, realizes the benefit or detriment to the extent that the actual
cost of performing the work differs from the contract price. The allowable government
contract costs and fees of TAT are subject to audit and may result in non-reimbursement
of some contract costs and fees. While governments reserve the right to conduct
further audits, audits conducted for periods through fiscal year 2014 have resulted
in no material cost recovery disallowances for TAT.
The eligibility of TAT to perform under its government contracts requires TAT
to maintain adequate security measures. TAT has implemented security procedures
that it believes adequately satisfies the requirements of its current government
contracts.
Sources:
Tat Technologies Ltd’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: Tat Technologies Ltd’s corporate clients.
For your research, we’ve provided 9 tables on Tat Technologies Ltd corporate clients.
You can find them in the navigation menu under Customers & Markets.
To download the tables, please subscribe.
Intraday data delayed per exchange requirements. All quotes are in local exchange time. Intraday data delayed 15 minutes for Nasdaq, and other exchanges. Fundamental and financial data for Stocks, Sector, Industry, and Economic Indicators provided by CSIMarket.com
Disclaimer: Information provided by CSIMarket.com is for informational purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell any security.
23.97 %
