Alan Pellegrini - IMS false claims Tuesday, August 2, 2005 5:10 PM
Dear Brad,
Thanks for taking the time to write and express your concerns. There does
seem to be a fair amount of speculation regarding IMS and Wencor. Here are
some facts regarding IMS. We are a privately held company so some of this
you can take on faith, check out yourself, or simply choose not to believe,
it's up to you. But I can assure you that the information is accurate.
IMS's revenues will exceed $10M this year, a 40% increase over last year.
IMS has several Pea customers flying today (production not trials) including
Varig, Harmony, Excel, Travel City, and Jet Airways. There are 7 total
production Pea programs flying. IMS has deliveries upcoming for Peas to 2
other airlines, neither has announced publicly yet and we respect their
desire for confidentiality. We have conducted trials with a few others
including American, Valuair and BMI, which are now concluded. We have two
other active trials, one with a carrier that APS also trialed with
previously. The AA trial resulted in awards for other IMS products,
including a larger Pea unit which will be delivered end of year. In
addition we have announced orders for our TDL WiFi product, including AA and
Virgin America, both with deliveries this year. We have a third TDL
customer not yet announced but the program is active.
As for our product (and company) being third rate, I suppose that's for
airline's to judge. I happen to think it's a pretty good product, and that
IMS is a very good company with a strong industry reputation. I appreciate
that others may choose to feel differently, but frankly, my concern is what
airline's believe. We have other products in development, and I believe
they will be received positively by the airline community as well.
As for content, anyone saying we do not get early window content from all
the major studios is simply misinformed. There's nothing else to say about
it. We get early window content and if you believe otherwise then you are
wrong.
I should add for completeness that IMS is also a significant provider of
software development and systems engineering work for major OEMs, including
our biggest customer Boeing. I believe they all feel good about the quality
of IMS work as well.
Regarding the Wencor transaction, I cannot really comment openly about why I
think it didn't materialize - sorry. I also have no way of knowing what
Brent thinks of our management team, or his motives for being interested in
IMS in the first place. Again, frankly, I don't really care. We wish
Wencor and Brent the very best and have absolutely no hard feelings over
this recent exercise. We have a game plan to execute as do they. Similarly
we wish e.Digital the best. We understand that they are a significant
supplier to Wencor and hope the best for them and their shareholders.
I hope this brief summary helps. I realize that no matter what we say some
people will choose to believe (and say) otherwise, that's the nature of
business.
Best regards,
Alan Pellegrini
AI
