Eclipse Aviation supplier Albany International revealed on August 19 that Eclipse “has indicated that it was substantially reducing production of the Eclipse 500 jet, and planned purchase of components from [Albany Engineered Composites] and other suppliers, for the remainder of 2008 and the first half of 2009.” Although Eclipse Aviation declined to comment about this information, Albany International added, “Based on information provided to date by Eclipse, purchases of AEC components are thereafter expected to return to and then exceed previous levels.”
Another key Eclipse supplier–Innovative Solutions & Support, manufacturer of the flat-panel display at the heart of the Eclipse 500’s Avio NG avionics system–is also facing reduced revenues from Eclipse’s production problems. According to investment research firm Boenning & Scattergood, “We believe this production cut will weigh heavily on the results of IS&S and will likely prevent the company from meeting its FY08 revenue guidance of $34 million. In addition, we believe the company’s FY09 revenue streams will likely be at risk and suspect the company will struggle to maintain a positive ramp in its quarterly revenues in FY09.”
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