June 24, 2008 – HANDHELD IFE hardware supplier e.Digital of California has reported revenues for the year ended March 31 of $5.6 million, more than 200 per cent on the previous year’s result.

The company supplies its eVU player directly to airlines and as part of the turnkey offering of UK-based provider Mezzo. The latest result represents a not inconsiderable achievement by e.Digital, which has consistently struggled to build a positive balance sheet. In the past 12 months it chalked up steady sales via Mezzo and directly to Lufthansa, Malaysia Airlines, Air France, Alitalia, Neos Air and Corsairfly, offset slightly by the loss of business from failed premium-only carriers MAXjet and Silverjet.

e.Digital continues to be dogged by a history of losses, however. Gross profit for the year was $1.5 million against $1.0 million in the preceding 12 months. But after taxes and other deductions it was left with a net loss of $1.7 million, down slightly on the $3.1 million negative result of the previous year.

One the positive side, the company says it received a new eVU order from a European airline that flies to over 100 destinations and has already completed shipping the players. “We expect additional IFE orders and customers,” says president Will Blakeley. “We believe eVU can contribute the additional revenues that airlines are seeking to help defray today’s soaring costs.”

The company recently decided to defer development of an embedded system based on its eVU technology, preferring to put the resources into developing applications for non-IFE markets, according to Blakeley. “We’re working on business opportunities that we expect will yield non-IFE eVU orders later this year,” he says.

Source: Shephard Inflight