Portable IFE firm e.Digital sees revenues drop in fiscal 1Q

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Portable in-flight entertainment (IFE) specialist e.Digital narrowed its fiscal first quarter net loss to $570,000 compared to the $669,000 loss it recorded in the year-earlier period.

However, the company - which provides eVU entertainment systems to airlines - saw revenues decline to $223,000 for the three months ended 30 June from $378,000 in the 2008 fiscal first quarter as "sales activity remained slow" in the portable IFE market.

Expenses declined by $30,000 to $656,000. The firm says increased litigation-related legal expenses of $157,000 were offset by reductions of $126,000 from reduced staffing.

E.Digital claims it was the first to develop, employ and patent important technology that initiated the use of flash memory in portable products. It believes its flash memory-related intellectual property is being infringed through wide use in many of today's popular consumer products. The company has been in a protracted dispute with rival and former partner digEcor,

"Based on its early licensing success, the company anticipates further legal and licensing activity, additional patent enforcement actions, and additional IP-related revenues this fiscal year. However, there can be no assurance of the timing or amounts of future license revenues," says e.Digital.

"In spite of difficult market conditions, we are working with airlines on new and follow-on portable IFE orders as well as pursuing non-IFE business," adds e.Digital president and CEO Fred Falk.

The firm intends to showcase its enhanced eVU entertainment system at the upcoming World Airline Entertainment Association (WAEA) conference and exhibition being held in Palm Springs, California.