EMRISE RECEIVES $4 MILLION IN ORDERS TO BE USED IN COMMERCIAL AEROSPACE APPLICATION
Bolsters Growing Backlog of Expected Revenue Shipments in 2011;
Strong Indicator of Strengthening in IFE&C Market
DURHAM, NC - December 7, 2010 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that it has received orders valued at approximately $4 million for power supplies and subsystems to be used in In-Flight Entertainment and Connectivity (IFE&C) systems. Shipment of the orders, which were received from a major IFE&C systems integrator by the Company's Pascall Electronics Ltd. subsidiary in England, is expected to begin in the second 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 this $4 million in orders from a longstanding international customer, the Company expects to receive additional orders for products to be used in IFE&C systems in the near future. "All these orders will contribute significantly to the growing backlog of orders we expect to ship in the next two years and help the Company achieve its goal of generating solid year-over-year revenue growth in 2011," Oliva added.
"We believe the orders we just received and the ones we expect in the near future indicate that the strengthening in the IFE&C market we have expected and talked about over the last few months is occurring and will be a significant driver of our future revenue growth," Oliva said.
With the airline industry seeking new sources of revenue, EMRISE expects the demand for revenue generating, multimedia IFE&C systems for installation in new aircraft and to retrofit existing aircraft will increase substantially. IFE&C systems can deliver to the passenger seat a variety of multimedia entertainment features including pay-per-view games and satellite television, and a seat-back iPod interface, as well as 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.
"As the demand for these advanced IFE&C systems increases, we believe EMRISE is well positioned to capitalize on that increase, which will be an important contributor to the success of our strategies to grow revenue and add value for our stockholders," Oliva added.
Despite the global economic downturn and the operational and financial challenges EMRISE faced during the last two years, the Company continued to broaden its offering of sophisticated devices and subsystems for use in advanced, multimedia IFE&C systems by applying the experience it has gained in developing products for demanding military applications. "These orders are further evidence of the success of our strategy to diversify and offer products for commercial applications like IFE&C, which leverage our military expertise," Oliva said.
Pascall provides a range of power systems, RF devices and integrated subsystems for a number of commercial aerospace and defense applications, including advanced IFE&C systems. The Company's power systems, RF devices, integrated subsystems and other electronic-device products are key elements of these systems and essential to the reliable delivery of a range of high quality, multi-media in-flight entertainment features.
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. 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 the expectation that shipments will begin in the second quarter of 2011and be completed in the fourth quarter of 2012; EMRISE's belief that these orders are a strong indication of the expected strengthening in the IFE&C systems market; the Company's expectation of receiving additional orders for these types of systems, and the ability for products that support IFE&C to contribute to revenue growth or add value for stockholders may all be interpreted as forward looking statements. 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 June 30, 2010, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.
|
