I am a new position holder, and am excited about someday owning an SR20. I see that Cirrus has recently let a number of people go, however, and is talking about the need to improve efficiency in their manufacturing department. Should I be concerned about this in any way? Is the company on firm financial footing?
I am a new position holder, and am excited about someday owning an SR20. I see that Cirrus has recently let a number of people go, however, and is talking about the need to improve efficiency in their manufacturing department. Should I be concerned about this in any way? Is the company on firm financial footing?
For what its worth, here’s my read. As reference, I have put 45k$ down two years ago on a July 2001 SR22. However, decided NOT to invest in Cirrus last summer due to production forecasts I believed were unrealistic - they turned out to be 50% above acutal production.
From a “market acceptance” point of view, it is clear the SR20/22 are hugely successful and will survive.
From a financial point of view, whether Cirrus will survive or not is extremely problematic. You are looking at a company with high debt (incurred in development and production startup), no earnings, financing itself privately in a tough market. They continue to loose money / burn investors’ and customers’ cash and probably will continue to do so until they get production stable at > 20+ planes / month. That has been the target for some time - not yet achieved. The recent management changes indicate that they probably don’t have the management talent required to run a world class manufacturing operation yet.
Having said that, they have gotten this far. Which, in itself, is a huge accomplishment. Clearly, they have an excellent design team. Will they can get over this last hurdle ? ?
Given the market success of the SR20/22, I would expect someone to buy the design and the manufacturing facility regardless. Would they honor the current sales contracts? Probably. Might even be the best outcome for shareholders and customers. Probably not for the founders.
I am a new position holder, and am excited about someday owning an SR20. I see that Cirrus has recently let a number of people go, however, and is talking about the need to improve efficiency in their manufacturing department. Should I be concerned about this in any way? Is the company on firm financial footing?
For what its worth, here’s my read. As reference, I have put 45k$ down two years ago on a July 2001 SR22. However, decided NOT to invest in Cirrus last summer due to production forecasts I believed were unrealistic - they turned out to be 50% above acutal production.
From a “market acceptance” point of view, it is clear the SR20/22 are hugely successful and will survive.
From a financial point of view, whether Cirrus will survive or not is extremely problematic. You are looking at a company with high debt (incurred in development and production startup), no earnings, financing itself privately in a tough market. They continue to loose money / burn investors’ and customers’ cash and probably will continue to do so until they get production stable at > 20+ planes / month. That has been the target for some time - not yet achieved. The recent management changes indicate that they probably don’t have the management talent required to run a world class manufacturing operation yet.
Having said that, they have gotten this far. Which, in itself, is a huge accomplishment. Clearly, they have an excellent design team. Will they can get over this last hurdle ? ?
Given the market success of the SR20/22, I would expect someone to buy the design and the manufacturing facility regardless. Would they honor the current sales contracts? Probably. Might even be the best outcome for shareholders and customers. Probably not for the founders.
as of a week or two ago they were near to landing a very large institutional investor of MANY million $…in my estimation thi splacement would be way more than necessary to cover time to get to 20+ a month…
I am a new position holder, and am excited about someday owning an SR20. I see that Cirrus has recently let a number of people go, however, and is talking about the need to improve efficiency in their manufacturing department. Should I be concerned about this in any way? Is the company on firm financial footing?
For what its worth, here’s my read. As reference, I have put 45k$ down two years ago on a July 2001 SR22. However, decided NOT to invest in Cirrus last summer due to production forecasts I believed were unrealistic - they turned out to be 50% above acutal production.
From a “market acceptance” point of view, it is clear the SR20/22 are hugely successful and will survive.
From a financial point of view, whether Cirrus will survive or not is extremely problematic. You are looking at a company with high debt (incurred in development and production startup), no earnings, financing itself privately in a tough market. They continue to loose money / burn investors’ and customers’ cash and probably will continue to do so until they get production stable at > 20+ planes / month. That has been the target for some time - not yet achieved. The recent management changes indicate that they probably don’t have the management talent required to run a world class manufacturing operation yet.
Having said that, they have gotten this far. Which, in itself, is a huge accomplishment. Clearly, they have an excellent design team. Will they can get over this last hurdle ? ?
Given the market success of the SR20/22, I would expect someone to buy the design and the manufacturing facility regardless. Would they honor the current sales contracts? Probably. Might even be the best outcome for shareholders and customers. Probably not for the founders.
as of a week or two ago they were near to landing a very large institutional investor of MANY million $…in my estimation thi splacement would be way more than necessary to cover time to get to 20+ a month…
GT -
If the private placement is consumated as rumored, then, you’re right, Cirrus has more cash to live off.
But, in the end, the comments above remain the same. They need to get their manufacturing operations lined out. BTW - looks like they are well on their way to a 30% underrun of Ian Bentley’s 2/15/01 production forecast for the first quarter.