DURHAM, N.C., March 15, 2011 /PRNewswire/ -- EMRISE CORPORATION (OTC Bulletin Board: EMRI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that it has received orders valued at approximately $1.8 million for electronic devices and subsystems to be used in In-Flight Entertainment and Connectivity (IFE&C) systems. Including these orders, EMRISE has announced more than $11.1 million in major orders for its Electronic Devices and Communications Equipment business units since early December 2010.
Shipment of these new orders, which were booked by the Company's Pascall Electronics Ltd. subsidiary in England, is expected to begin in the third quarter of 2011 and be completed by the fourth quarter of 2012.
EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said in addition to the orders announced today, the Company expects to receive an increasing level of orders for products used in IFE&C systems in the coming months. "This $1.8 million in orders will add to that portion of our growing backlog of orders expected to start shipping in the third quarter of this year, which we believe will contribute to our profitability in the last half of 2011," Oliva added.
"We also believe these new orders and the IFE&C orders we announced in the last few months are clear evidence of a solid upward trend in demand for IFE&C systems from the flat market we have experienced for the past two years. We expect the future outlook for our IFE&C business will be strong and represent a significant driver of our revenue growth going forward," Oliva said.
In addition to increasing efficiency and reducing costs, airlines are seeking additional revenue sources that improve a passenger's travel experience and have a positive impact on a carrier's bottom line, which EMRISE believes is driving substantial increases in demand for new revenue-generating, multimedia IFE&C systems. These systems, which are being installed in both new and existing aircraft, can deliver to the passenger seat a variety of multimedia entertainment features including pay-per-view satellite television and a number of communications 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 (IFE&C) 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 the orders will begin shipping in the third quarter of 2011 and be completed in the fourth quarter of 2012; the Company will receive an increasing level of orders for products used in IFE&C systems in the coming months; these new orders will contribute to that portion of the Company's growing backlog of orders expected to start shipping in the third quarter of this year; the $1.8 million in orders will contribute to the Company's profitability in the last half of 2011; the airline industry demand for IFE&C systems is increasing; and the future outlook for the Company's IFE&C business will continue to be strong and be a significant driver of 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, 2009, as amended, Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.
SOURCE EMRISE Corporation