A bit confusing after reading it more than once.

My interpretation:

• IFE demand is down due to economics in general, not because the current eVU is not a proven product. 30+ airlines have bought it.
• Why pour more money into the next generation eVU at this time (see above for the reason) when they cannot justify it, due to a return on investment being risky with their limited cash on hand as we speak? I even sent an email to Fred and Robert on 8/12/10 thanking them for making the tough business decision to temporarily suspending development so not to burn cash at this time.
• They re-grouped with a less costly "face lift" and hardware improvement of the current design.
• Seeing more demand for the service portion, is a good thing, as the gross margins have improved etc.
• If/when demand returns and/or the efforts of Pat Nunally being involved in new technologies OUTSIDE OF IFE, they can easily take over where they left off and finish the new version.

I don't see what's negative about any of this. If I had a hundred dollar bill for all the times my employers postponed a new product launch over a thirty-seven year career, I could by tens of thousands of EDIG shares adding to my pot! lol

Ask yourself everyone.....what gets cut first in down economic times by outfits like EDIG and even the big boys? Travel and entertainment gets hit 1st, then it's a toss up between R&D or raises for the number two spot.

Just smart business far as I am concerned.