FLYT to disaster in the making....
have a quick look at an excerpt from their just
announced quarterly results:
go2net.newsalert.com
"...For the second fiscal quarter of 1998, the company reported revenues of $4,732,162 compared to $2,361,362 for the same period last year. Revenues for the second quarter of fiscal 1998 consisted of equipment sales and installation of the company's In-Flight Entertainment Network on Swissair aircraft.
As of April 30, 1998 the company had completed installations of the Entertainment Network on nineteen Swissair aircraft. The company recently signed a letter of intent with Swissair for three additional systems to be installed during the first quarter of fiscal 1999 at a price of $3,970,000. The company has also received a letter of intent from Swissair for $3,975,000 to extend the warranty on all installed systems for a second and third year.
The company has no backlog other than the final three installations on Swissair, but continues to be responsible for maintenance costs through September 1998, costs for the remainder of the warranty period including the extended warranty, and certain performance and reliability guarantees.
Also, the company is obligated to deliver several software and hardware upgrades later this year, the development of which is not yet complete.
Because of the lack of prospects for success in obtaining additional orders, and in order to reduce its expenses further, the company has terminated almost all sales and marketing efforts as of May 29, 1998.
Although the company may respond to any requests for proposals it receives from airlines, the decision not to continue to invest resources in sales and marketing means that the company has no significant prospects for additional revenue from the In-Flight Entertainment Network other than those related to the two letters of intent from Swissair.
Because of the difficulties in obtaining new in-flight entertainment customers, the company is working to identify specific areas for alternative business development or acquisition which can use the company's principal assets--its cash and net operating losses...." |
