Posted on: 03 August 2010 by Ross McSweeny
Portable IFE vendor e.Digital has suspended further development of its next generation eVU hardware in favour of remodelling and enhancing the existing device.
“While we added Sri Lanka Airlines as our newest eVU customer last quarter, portable IFE business conditions for new hardware are still not showing improvement,” says e.Digital president and CEO Fred Falk. “We are suspending further development of our next generation eVU hardware and instead we are updating eVU’s housing with a dramatically enhanced new look as well as making other hardware improvements.
"Should IFE business conditions improve or we partner outside of portable IFE, we can rapidly complete the next generation upgrade. We are receiving increasing interest in our IFE services and we’re working to grow this side of the eVU business to profitability.”
The company reported revenues of $512,000 for its fiscal first quarter ended June 30, 2010, up 130% over the $223,000 recorded in the first quarter of fiscal 2010. Revenues for the latest quarter were derived primarily from eVU sales and services.
Gross profit for fiscal Q1 2011 was $175,000 or 34 per cent of revenues, compared with $102,000 or 46 per cent of revenues for the same period a year ago. Service margins declined from 65 per cent to 54 per cent because of repair and content mix, but higher product sales meant product gross margin was positive in the first quarter, the company adds. However, operating expenses amounted to $525,000 and the loss attributable to common stockholders for the quarter was $382,000.
In June e.Digital said it was making progress on the next generation of the eVU platform and planned to introduce new eVU systems later this year, primarily through partnering relationships.