November 15, 2007 – CALIFORNIAN handheld IFE supplier e.Digital has reported record revenues and a reduced net loss for its fiscal 2008 second quarter and the six months ended on September 30.
 
The news must come as a welcome tonic to the company in the midst of a protracted and messy intellectual property dispute with competitor digEcor. Meantime, Utah-based digEcor itself may be starting to regret having put so much energy into litigation, with the industry rumour mill suggesting that its digEplayers are to be dumped by flagship customer MAXjet after a year of unsatisfactory performance. 

e.Digital has had its best year since entering the handheld IFE world as an independent player, with multiple sales of its eVU to a number of leading European carriers, as well as several deals via turnkey service provider Mezzo.
 
The company reported revenues of $2.42 million for the three months to the end of September, increased out of sight compared with the $13,000 logged in the corresponding period last year, and 86 per cent up on the previous quarter to June 30. Revenues for the six months to the end of September totalled $3.72 million compared with $34,000 for the same six months in the previous year.

Gross profit for the second quarter was $597,000 (25 per cent of revenues), with $844,000 (22 per cent) logged for the first six months. Operating costs for the six months to September 30 were $1.44 million compared with $1.57 million a year earlier.

Net loss fell significantly in the second quarter to $158,000 compared with $1.60 million a year earlier, while net loss for the first six months was $751,000, well down on the $2.73 million for the same period last year.

“In the last twelve months we have sold over $5 million in products and services to airlines around the world,” says e.Digital president Will Blakeley. "We expect the recent launch of our eVU Extended Range, offering 20+ hours of continuous video playback from a single battery charge, to lead to new IFE business and follow-on orders this quarter and in calendar 2008.”