EMRISE Receives $5.4 Million Electronic Devices Order for In-Flight Entertainment and Connectivity (IFE&C) Systems Largest Order Received To-Date; Airline Industry Demand for IFE&C Systems Increasing
DURHAM, N.C., June 7, 2012 /PRNewswire/ -- EMRISE CORPORATION (OTCBB: EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has received a $5.4 million order for electronic devices and subsystems to be used in In-Flight Entertainment and Connectivity (IFE&C) systems to be installed in commercial aircraft. The order, which is the largest IFE&C order received to date by EMRISE, was secured from a large, longstanding customer by the Company's Pascall Electronics Ltd. subsidiary in England. Shipment of the order is expected to begin in this year's fourth quarter and continue through 2013.
EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said this order is an indicator that the size of the IFE&C market continues to grow. Demand from air carriers for IFE&C systems has increased significantly over the last several quarters, and today the Company is receiving orders from a growing list of IFE&C customers, which includes nearly all the preeminent suppliers in the market.
"We had one major customer for IFE&C products in 2007 and now our roster of customers numbers eight, which has also increased the number of IFE&C orders we are receiving," Oliva said. "These systems improve a passenger's travel experience and are an additional revenue source that has a positive impact on the carriers' bottom lines. For those reasons, we believe the demand for new multimedia IFE&C systems will continue expanding and become an even more significant driver of our revenue growth going forward."
Today's advanced IFE&C systems are now being installed in both new and existing short- and long-haul aircraft and they can deliver to the passenger seat a variety of multimedia entertainment features including live satellite television and a number of connectivity features such as GSM for in-flight mobile phone use and Broadband for access to Internet, e-mail and messaging services.
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; radio frequency (RF) and microwave signal processing; and network access and timing and synchronization of communications networks. The use of its network products in network timing and synchronization in edge networks is a primary growth driver for the Company's Communications Equipment business segment. The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board in-flight entertainment and connectivity systems is a primary growth driver for the Company's Electronic Devices business segment. EMRISE serves the worldwide base of customers it has built in North America, Europe and Asia through operations in the United States, England and France. EMRISE is a publicly traded company whose common stock trades on the OTCBB under the symbol EMRI. For more information go to www.emrise.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, certain matters discussed in this press release are forward looking statements within the meaning of the Private Securities Litigation Reform Act including but not limited to the expectation that shipment of the order will begin in this year's fourth quarter and continue through 2013; the Company will receive an increasing level of orders for products used in IFE&C systems in the coming months; and demand for new multimedia IFE&C systems will continue expanding and become an even more significant driver of the Company's revenue growth going forward. The actual future results of EMRISE could differ from those statements. The Company refers you to those factors contained in the "Risk Factors" Section of EMRISE's Annual Report on Form 10-K for the year ended December 31, 2011, as amended, Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.
SOURCE EMRISE Corporation