“On June 22, 2016, due to liquidity constraints, Lumexis Corporation (“Lumexis”) suspended many aspects of its business operations and was forced to terminate the majority of its personnel. Over the past few weeks, the Lumexis Board, Company President (Lou Sharkey) and CFO (Marty Breen) have been actively engaged in a process to find an acquirer for the Company/Assets. Lumexis is currently in discussions with multiple groups regarding a potential transaction. The Company expects to conclude this process in the coming weeks.”
“During this period the Company has been in constant communication with its customers and suppliers. Lumexis management is grateful for all the support received from their customers, supply chain and industry partners during this transition. As more updates and clarification on the future of Lumexis become available, further updates will be openly communicated.”
“Questions to Lumexis may be addressed to ‘lsharkey@lumexis.com’. Please note that due to the volume of inquiries from various interested parties, Lumexis may not be in a position to respond to calls or messages in as timely a manner as we would like.”
Lumexis
“It’s been very busy lately,” noted Jon Norris, Lumexis VP, Sales & Marketing, “…because the Boeing 737NG, and the 737MAX have taken a lot of our recent attention!” In case you didn’t know, the FTTS (fiber to the seat) system is a revolutionary high-bandwidth AVOD passenger entertainment, communication and retail platform having the lowest cost of ownership over the life of the system. FTTS is easily upgraded in capacity and functionality at unprecedentedly low cost to maintain ongoing ‘leading edge’ performance and is applicable to every aircraft type in an airline’s fleet. Last year, the Lumexis FTTS system received line-fit approval for Boeing single-aisle aircraft. Line-fit offerability from Boeing speaks for itself. The company is currently pursuing line-fit offerability at Airbus for their single-aisle aircraft as well. Perhaps the most important aspect of line-fit offerability is that airlines can order planes to be delivered with their choice of IFE, making the installation process a little bit faster. When asked about the benefits of linefit offerability Jon Norris said, “We have had a very positive response from airlines since Boeing line-fit offerability was announced which has led to a considerable number of invitations to bid on current and future 737 Next-Generation and MAX IFE RFPs.Achieving linefit on both the 737 NG and MAX is a significant step forward for Lumexis as it gives us access to a market of more than 500 new Boeing 737 aircraft a year at current production rates (with those build rates increasing year-on-year). In addition it reinforces our position as one of the major IFE system suppliers and increases our standing and credibility within the retrofit market as well as with other airframers. Linefit installations are very similar to retrofit installations. , e.g., the FTTS servers installed on the E8 rack in the electronics bay, 28 VDC power supply units installed in the sidewalls (each power supply drives 15 seat displays), fiber cables are run from the servers up to and behind the ceiling panels and then overhead along the cabin and dropped down to the seat groups. As per the retrofit installation FTTS VDUs are installed by the seat manufacturer and are supplied to Renton pre-installed in the seats.”
FTTS uses IFE touch screen aesthetics and functionality with their Fast Adaptable Swipe and Touch (FAST) graphical user interface (GUI). The FAST GUI responds to tablet swipe gestures as well as soft-touch selection of all entertainment menu items providing an exciting and entertaining passenger experience.FAST provides an intuitive feature-rich user interface that makes significant use of images to ensure that passengers can quickly find the IFE content that they’re looking for. With FTTS’s massive 3 TB real-time server library airlines can offer several hundred, full-length, HD movies to every passenger accompanied by unlimited language, sub-titles and captions. FTTS provides exceptional flexibility and ease of GUI modification/customization. The system can feature local news, run e-reader applications, and has pinch and zoom capabilities.
Over the past 18 months Lumexis has also been addressing the need for an ultra-low cost IFE system for single-aisle aircraft. As a result, they launched iPAX in 2015. “Lumexis has taken another industry-leading step forward with the launch of its unprecedented new iPAX™ in-flight entertainment (IFE) product – a wireless-streaming in-seat system at the ultra-low price of $1,495 and weight of only 8.9 ounces per seat.” And lets face it, delivering a wireless connectivity cloud solution to seatback IFE is a lot cheaper than running cable bundles of wires to each seat via routers and division multiplexers. We asked about the functionality of the system and Mr. Norris told IFExpress that iPAX is a wireless/seat-centric hybrid system blending local storage with wireless streaming to optimize available bandwidth and performance. The system even has built in capability to provide a passenger-to-crew ordering system. We also inquired about the wireless WAP efficiency and he told IFExpress that “between 40-50 passengers will be served by each WAP simultaneously which calls for approximately 3 to 4 per each single-aisle plane… obviously determined by the choice of WAP and type of content.” System price was another astounding feature of the iPAX seat display units and the inseat power (2.1A USB) is a Lumexis product that is available as an option.
Lumexis has made some adjustments since the launch of iPAX, e.g., the screen today is ultra HD and slightly larger than it’s predecessor. The iPAX inseat screen for viewing can have an optional 2.1A USB port and credit card swipe, all with standard GUI. The company clearly has the 12 thousand single-aisle retrofit aircraft market clearly in their sites with this product. Lumexis touts that iPAX is half the weight of a standard overhead system.
Currently, Lumexis is on its 4th generation of FTTS (the 3rd generation of which is flying on flydubai, Batik Air and Malindo Air (of the Lion Air Group) and Turkish Airlines. The 4th generation has exactly the same fit and form as its predecessor featuring either 10.1” or 12.1” screen (on single aisle aircraft) and additionally 15.4” and 23” screens for wide body aircraft, mobile processor (2.5 GHz quad-core processor), and uses Android Lollipop for the operating system. This generation of FTTS has increased processing power, offers multi-languages with subtitles, and the interface is absolutely instantaneous. “The beauty of Android is we can take any Android-based App and host it quickly on our system,” said Jon. “We believe this is the highest performance platform on the market today!”
Lumexis is also offering a hybrid system. Airlines can offer FTTS inseat AVOD to their business/first class passengers and iPAX inseat AVOD content to their economy travelers. Lumexis foresees a large demand for this split offering, especially in the Asia-Pacific and China markets.
(We encourage our readers to check out the videos and accompanying data on the Lumexis site – PLWiseman/Publisher & Editor)
IFEC News:
American Airlines (NASDAQ: AAL) has selected ViaSat Inc. (NASDAQ: VSAT), a global broadband services and technology company, to outfit its new Boeing 737 MAX fleet with ViaSat’s in-flight internet service. The ViaSat in-flight internet service has been recognized with multiple industry awards for delivering the best performing, highest-quality and fastest in-flight internet experience. The service encourages higher passenger engagement per plane by offering an ‘at home’ internet experience when in-flight – with the ability to stream movies, videos, television and music, as well as surf the web, upload pictures to social media, email large files and more. The new American planes will tap into the power of ViaSat’s advanced high capacity Ka-band satellite system, which will include ViaSat-1, ViaSat-2 and ViaSat-3 satellite platforms, and has more capacity in orbit than any other in-flight Wi-Fi provider. American will leverage ViaSat’s first two generation satellite platforms, which together provide more capacity than all of the commercial satellites over North America combined. When the first ViaSat-3 class satellite platform launches in 2019, it will more than double the capacity again. With its capacity-rich satellite platforms, ViaSat is able to deliver the fastest, highest quality in-flight internet service to each connected device on a plane.
Other:
- We have been waiting for new BOSE wireless noise cancelling QuietComfort 35’s headphones and QuietControl QC 30 earbuds, and here they are – Bose’s Best Noise-Canceling Headphones Finally Go Wireless
- Satellite broadband hardware and service provider ViaSat Inc. on May 24 said it would accelerate investment in its terabit-per-second-throughput ViaSat 3 satellite program and continue to invest in licenses for its airline-connectivity business. – See more
- The folks at NOKIA are really on top of airport connectivity (even planes) and you might want to note how they see the value of LTE in airport communications (and possibly aircraft) future in the evolution to LTE.
- SITAONAIR sent IFExpress an interesting infographic outlining “What Passengers Want Infligh”t – you can find it here
- The following link is to US Underwriters Laboratories (UL) short outline for the future of there Internet of Things (IoT). While not data-rich, the seven-page outline gives the reader a quick and dirty view of the coming business and in their words, “a general introduction to the technologies and standards that are expected to support the continued widespread deployment of the IoT”. While aviation is largely not mentioned, transportation is – you be the judge. It is probably too early to talk of aviation impact but it will happen. Here is the link and here is a short example of the data inside: “Bluetooth and variants—The Bluetooth protocol (based on IEEE 802.15.1) also operates in LAN-based environments at distances typically up to 10 meters, although some Bluetooth-enabled devices will work at distances of up to 100 meters. Bluetooth’s principle advantages are its low rate of power consumption, the capacity to handle multiple devices simultaneously, and its ability to transmit wirelessly without visual line of sight contact. A Bluetooth variant, Bluetooth LE (also known as Bluetooth Smart) offers all of Bluetooth’s communications advantages at significantly reduced power consumption rates.”
- Drones will be at airports, as we noted some months ago, however, the un wanted ones may face issues soon. US airports to put drone-disabling system to the test
- We hesitate to title this read as the Bangalore Mirror did but five Georgia Tech students “have developed a system that helps long-haul passenger flights dispose of waste generated on board while simulating the functions of the human digestive system.”
- “AIRBUS has unveiled 4-meter-long electric-powered airplane manufactured via 3D printing; aircraft is comprised of around 50 3D printed parts and two electric motors.” SpeedNews
- Security Tips for International Travelers says it all – nine data travel tips! IT Security Tips for International Travel
- Think you have been “pwned” (Look it up!)? This site is really useful and we found one site hacked with a password to be changed! – Have I been pwned? Check if your email has been compromised in a data breach
- Staying up on cyber intelligence? There is an app for that – The Threat Brief on the App Store and in Android – The Threat Brief – Android Apps on Google Play
- Ever heard of Ian Poole? He is the editor of a terrific technical website called Radio-Electronics.com. If you like EE stuff. Here are a couple good articles he penned – LED Technology: What is a LED? | Light Emitting Diode | Technology Tutorial and Radio Signal Path Loss: Radio Signal Path Loss :: Radio-Electronics.Com All stuff many of our readers like.
Perhaps the best flying motto ever was recently spotted on an editor’s desk: “Eagles may soar, but weasels don’t get sucked into jet engines.”
We are still covering the press meetings with APEX Show vendors and will do so for the next few weeks to let our readers get a better feel for our discussions there – our goal is the help everybody understand their products and promotions…
Lumexis:
The Lumexis press release said it all best about their announced deal in Portland: Lumexis Corporation today announce that their Fiber-To-The-Screen (FTTS) In-Flight Entertainment system has been selected by Caribbean Airlines for installation on their fleet of B737 aircraft. “We are extremely pleased to welcome Caribbean Airlines as our latest airline customer,” said Jon Norris, Lumexis Vice President Sales. “In addition to continuing the in-service success of the FTTS system, Caribbean Airlines are the launch customer for FTTS Second ScreenTM which enables passengers to use their own tablets and smartphones simultaneously at their seat without interrupting the entertainment running in the FTTS HD monitors.” IFExpress understands that eight of their B737 will be initially involved. In case you don’t know the airline, Caribbean Airlines operates more than 600 weekly flights to 19 destinations in the Caribbean, North and South America and the United Kingdom. The airline’s fleet of 21 is comprised of Boeing 737-800, Boeing 767-300ER and ATR72-600 aircraft. Headquartered in Trinidad and Tobago, and with an operational base in Jamaica, Caribbean Airlines employs more than 1600 people. The airline is a member of the International Air Transport Association (IATA). Lou Sharkey, President and Chief Operating officer notes, “We are delighted to partner with Caribbean Airlines to bring to their passengers our award winning Inflight Entertainment system”. “Partner” is a good word here and we note, the key concept is to increase customer entertainment choice over their many worldwide routes. We understand the first install will occur in June of 2016.
The folks at Lumexis also stated that they have now developed their 4th generation FTTS system which, we note, features the Android Lollipop Operating System… the first IFE we know that does. This means, as one writer noted, “With Android Lollipop Google is making connectivity a big focus.” Improved connectivity is a big deal with the engineering folks and we see the second screen concept they are so proud of as a real passenger pleaser. However, as they also point out, the majority of airlines want seat back entertainment, but portable IFE is very well accepted as short haul solutions. And speaking of screens, the Lumexis team has developed full HD screens in their IFE offering with multi-touch pinch and zoom. Jon Norris notes that “… we’re talking to over 50 airlines at the moment who are interested in our FTTS line-it offering and considering the product… airlines are solidly considering Lumexis as the fourth IFE option on the B737.”
APEX has just announced that vendor attendees at the APEX TEC conferences will now be charged a fee to participate. As this changes a long-established tradition of TECs being a benefit of membership, IFExpress asked APEX Technology Committee chair and APEX Board Member Michael Childers to explain the reasons.
IFExpress: After years of offering technology committee meetings as a member benefit, why are you now charging?
Childers: There are several reasons. One is that these meetings have, over time, evolved from simply working meetings of various TC Working Groups, to educational conferences attended by people who are not members of the Working Groups, and who are attending for information and educational benefits.
As attendance has regularly increased due to this kind of attendee, the costs of these activities have also risen. It is difficult to distinguish between today’s TECs and the Educational Meetings that we have around the world, and it seemed reasonable to begin to try to achieve parity between the TECs and the Educational Conferences by charging vendor attendees who come for information which is of value.
IFExpress: Are you saying that membership dues no longer cover the costs of these events?
Childers: They do not. Nor does the combination of membership fees and the sponsorships for the TECs cover all of the expenses. Plus, as a direct expense of providing technology leadership, APEX now employs a part-time Technical Director, Bryan Rusenko, who spends a lot of his time helping to plan and execute TECs.
In addition, APEX has now hired a full-time CEO, Joe Leader, and more of Joe’s time than you might imagine actually goes into industry technology and how that is communicated via the TECs. Financial management is a big part of Joe’s leadership responsibility, and he does not believe in association activities that do not pay for themselves. The Board has agreed to look at everything we do as an association and consider how such activities can pay for themselves.
But Joe also believes in delivering value and he has committed to us that he will leverage his extensive contacts to give us access to even better speakers and panelists at future TECs. For example, Joe is directly responsible for landing a major technology company for our TEC program next month. (Come see!)
IFExpress: Haven’t a lot of the TC’s activities in the past depended on volunteerism rather than paid staff?
Childers: They have, but technology has become such a large part of our industry that the increase in volunteers doesn’t cover it. In addition, we are facing the fact that IFEC technologies do not exist in a vacuum—we benefit from and are dependent upon open standard technologies that originate elsewhere.
Content management technologies originating in the Society of Motion Picture and Television Engineers (SMPTE) such as the Interoperable Master Format (IMF); Movielabs, such as IMSC1-2 for closed captions; and the Digital Entertainment Content Ecosystem (DECE) and its Common Format, are all examples.
But we now have to look beyond just Content Management and consider such questions as how would open data exchange standards impact the passenger experience. APEX cannot create those standards, but we must be sure that we align our own specifications with them and have a seat at the table when they are developed.
IFEpress: What are the registration fees that APEX is seeking for the TECs?
Childers: $350 for vendor members, and $450 for approved non-members. Airlines and invited press get in free. Speakers, sponsors, and some active Working Group members are free or discounted.
More News:
- A recent interesting announcement from Panasonic and Teledyne controls is one of the new data related options being put together for airlines but go beyond IFE. “The companies will combine Teledyne’s Wireless GroundLinkComm+ product suite with Panasonic’s Global Communications Service to provide cost effective connectivity during flight or at the gate. This enhanced offering will leverage both Ku-band service and GSM cellular, enabling aircraft operators to break free from the bandwidth limitations and high transmission costs associated with traditional data communications systems. When combined with Panasonic’s Weather Solutions application and Teledyne’s GroundLink AID+ solution, real time weather can be delivered to the flight deck, resulting in enhanced safety and increased flight efficiency. Paul Margis, President and Chief Executive Officer of Panasonic Avionics, said, “With this agreement, Panasonic and Teledyne will create a unique service that uses real-time data transmission to create operational efficiencies and reduced costs for our customers.”
- Think 40GBASE-T puts an end of the “copper twisted-pair party”? Nope, think lower. Here is a quote from the Tektronix folks: “But in November 2014, IEEE 802.3 put out a call for interest on 25GBASE-T, driven by the likes of Cisco, Microsoft and Intel who recognized 25 Gb/s as a more efficient, cost-effective option for switch-to-server speeds in cloud-based data centers. Hence the 25GBASE-T IEEE study group was formed.” You can read more here.
- Don’t forget Aircraft Interior North America Exhibition in Seattle, WA. November 4 & 5. We are going there to see the Schott In-Seat Illumination products that use LED’s and fiber optics… not to mention the Star Ceiling interior paneling. See you there. You can register here
- Be careful on a plane using your iPhone/Android phone and headphones because hackers have been able to use radio waves to control your smartphone via the “antenna” the earphone leads provide… and they can do it up to 16 feet away! Check it out
- If you are into streaming media, this 2 day event in Huntington Beach is for you: The Streaming Media West expo offers attendees a firsthand look at the leading software, hardware, and network solutions and services in the streaming media industry. Streaming Media West 2015 Registration | Online Video Conference and Expo
Ron Chapman sent IFExpress a message and it said there will be a “GRRRILLA Gala” at NBAA! Stay Tuned, we will be there!
ViaSat:
Of course, the big news with ViaSat is that Excede in the Air, inflight Wi-Fi system, won the 2015 Crystal Cabin Award. Excede in the Air is a Ka-broadband service offering primarily focused in the USA today with customers JetBlue and United. ViaSat1 offers 140 GB per second total satellite capacity. ViaSat builds the antenna, server and modem for the system, while the WAPS are typically outsourced. Also, it should be pointed out that ViaSat offers ground, air and maritime services. The other big story to come out of AIX was the announcement of ViaSat Flexible Broadband System. This system brings a new level of flexibility, high capacity and affordability to service providers and is specifically tailored to the small operator. ViaSat and Boeing are also adapting a ViaSat2 based payload to the Boeing 702SP (small platform) satellite bus to provide affordable and flexible satellite broadband anywhere in the world. Don Buchman stated, “The current technology is not smart spot-to-spot. The next generation satellite can move the spot to where the demand is, which is why we call it flexible.” The advantage of a network system is that it can quickly shift, or ad capacity, to markets where demand grows and/or changes. Excede is designed to outperform other satellite systems by economically delivering more and cheaper bits. Typically it has 100 times the capacity of Ku-band system offerings and over 10 times the throughput of any previous Ka-band satellite. The results – service that is 8x faster than traditional satellite Internet service. This translates to an estimated burst demand of up to 12 mbps per passenger. The management is done at the NOC and the modem.
GORE:
As you probably know, W.L. GORE & Associates is a technology driven enterprise that focuses on discovery and product innovation, specifically the cable and fiber optic arenas. IFE vendors and airlines have benefited from greater bandwidth and lighter weight. The company’s portfolio includes everything from high performance fabrics (think GORETEX) to aerospace electronics. At AIX GORE discussed a new fiber optic cable that they have developed. In general terms, the cable offers increased flexibility, higher bandwidth, and easier connector interfacing. Without getting too technical there are at least two issues facing fiber: 1) If the fiber is bound too tightly (coat and bond) there is a potential for stress on the fiber creating breaks. 2) If the fiber is bound loose (filled with air so the fiber can move), decoupling the glass from the outside wall, there is a potential problem for micro-bends in the tube, causing collapse. GORE’s solution was to wrap the fiber with a tape, creating a “marshmallow over the fiber”. This acts as a dry lubricant. Additionally, they use another material over this creating a casing that acts like a “crash helmet”. The resultant benefit is a flexible semi-loose tube. Furthermore on another development front, GORE is looking at Plastic Optical Fiber (POF). POF is very rugged and can bend without snapping. It can be plugged and fixed without heat, and with POF you can cut and glue a termination and plug it in. The downside is 2DB/100 meters but from a sheer bandwidth perspective it is 10x worse than glass. POF is new to the industry but it is a very big deal. Stay tuned on this one.
Lumexis:
We thought you might like a review of the new Lumexis IPAX system that we experienced at AIX – complete with prices. In the words of Lumexis: IPAX provides unprecedented revenue potential for the single aisle marketplace (both retrofit and linefit). It is ultra, ultra low cost; ultra, ultra light weight; optimized for LCCs seeking ancillary revenue; and focused on short to medium haul operations. The base system is $1495 per seat, weighing in at 8.9 oz per screen. Lumexis states that IPAX weighs 8.9 oz less an iPad mini. The system uses a responsive OLED touch screen and will feature TV, video, shorts, music, and moving map. There will also be the capability for food and drink sales in the GUI. The system is a hybrid, offering stored content at the seat with 64GB of local storage, but also features a Wi-Fi feature for connectivity. Lumexis states that the only wire running to the screen is for power. IPAX options include a 2.1 amp USB port with reversible jack ($295/screen); as well as, an optional screen reader at the seat ($295). Both added features bundled are offered for $395. Lumexis really sees these options as driving the ancillary revenue opportunity of IPAX. The company states they are well along the development path with first delivery slated for 4Q15. Installations will take a 2 consecutive night layover: The first night will be 3 WAPS (a 4th might be needed) and the second night will be for seats/screens. Edward Shapiro (pictured with Lou Sharkey) – VP PAR Capital stated: “Other companies won’t cannibalize their system to develop a low cost product. Apple does but their price doesn’t go down like ours did!”
Clarification:
Last week we ran some great pictures of KID Systems seat-back concepts: and yes they were only concepts! On a separate note, we stated that they were working Lufthansa Technik and Qantas – not so reports KID. Mea Culpa!
Looking for an Executive Engineer?
If you are looking for Executive Engineering Level – Director or VP, perhaps a candidate we know might be of help to your organization. He wrote: “I can bring a new outlook to an existing organization, leadership through change, all while providing consistent results in technical product development. In summary, I have 25 years experience in IFE and Connectivity, during this time, I have developed innovated solutions and lead teams of highly motivated technical experts delivering solutions to meet the customer needs, all within budget. My expertise ranges from Systems, Software, Hardware, and Aircraft Installations areas. I was instrumental in the transformation and growth of several key technical organizations, as seen with my leadership of both Systems and Software Engineering. My objective is to attain quick results, being a key change agent and efficiently leading teams by using the latest techniques, such as Agile methodology and SAFe development process.” IFExpress knows the caliber of this applicant and strongly recommend him. If you express interest to plwiseman@gmail.com, we will be happy to supply a resume.
Ok readers, time to get your technical groove on because this week we deal with an old technology within a new application – Time Domain Reflectrometry (TDR). Firstly, the TDR technology is the science of sending pulses of electrical energy down lines to “see” the condition of the lines themselves by looking at the “reflected” energy pulses that are returned from conditions like line-breaks, shorted wires, and the characteristics of “stuff” that is electrically hung on the end of the lines themselves. In this game, returned pulse shape is everything, and the speed of the return locates the potential discontinuity, or whatever. Thus, the word “time” in TDR. Used in places like aircraft wings where it is challenging to inspect every foot, of every wire in every bundle. Notably, this technology has been around for years and was pioneered by the telephone folks. Now, add the difficulty of finding faults in fiber optic lines where the signal energy is made up of light and you have one tough job. That’s where we came a cross a slick new fiber optic test product from JSC Aeroptics in Britain. They have developed a new product that addresses the problem…specifically on, but not limited to, aircraft. JSC Aeroptics told us:
“Regarding the Luciol LOR-220 it has been demonstrated to a number of aircraft manufacturers, including Airbus and Boeing, and has been shown to audiences at both the ARINC and SAE fibre optic committees plus the US AVionics Fiber Optics & Photonics (AVFOP) and UK Fibre Optics in Harsh Environments conferences (FOHEC). The very nature of its technology makes it an ideal tool for use with short haul fibre optic installations of less than 300 metres in length (a typical commercial aircraft link would be in the region of a maximum of 150 to 200 metres) Regarding the Luciol LOR-220 it has been demonstrated to a number of aircraft manufacturers, including Airbus and Boeing, and has been shown to audiences at both the ARINC and SAE fibre optic committees plus the US AVionics Fiber Optics & Photonics (AVFOP) and UK Fibre Optics in Harsh Environments conferences (FOHEC). The very nature of its technology makes it an ideal tool for use with short haul fibre optic installations of less than 300 metres in length (a typical commercial aircraft link would be in the region of a maximum of 150 to 200 metres).”
After a discourse with Marketing Director John Cotterill and CEO Bruno Huttner, IFExpress decided to let them have a go at describing their latest Optical TDR test product with an interesting smattering of TDR history. Used now by Boeing and Airbus, the LO-220 write-up they provided is an interesting read and we thought you might like to enjoy the fruits of their labor in it’s entirety. Lastly, here is a link to their latest press release.
Costa Mesa, CA (November 30, 2009) – Lumexis Corporation, a manufacturer of advanced In-flight Entertainment and Connectivity Systems, has secured a $15 million investment led by the private equity fund management company, Perseus, L.L.C. The investment agreement includes the option for an additional investment of up to $7.5 million. Existing investors PAR Capital Management and Zone Ventures participated in the financing round. Lumexis also announced that it has been awarded a large order for its FTTS™ (Fiber To The Screen™) Audio-Video-On-Demand, In-Flight Entertainment Systems for installation on the new customer’s fleet of 737-family aircraft. The airline will use the system not only to provide passenger entertainment including movies on demand, games, and music, but also to support in-seat purchases by travelers of an array of products and services. The significant cost, weight, and reliability advantages of the Lumexis system were key determinants in securing both the order and the new investment capital.
The Lumexis FTTS™ system is based on new generation open software and hardware architectures. Data is transmitted from standard central servers via fiber optic cables that run directly to and from passenger screens, providing for super-high bandwidth, less weight and high reliability – all at significantly lower cost. Competing systems that dominate the market today are based on obsolete hardware and software architectures and rely on copper wiring to transmit data to the user. Unlike the Lumexis system, the competing systems require electronics boxes at every seat and intermediate switches to direct and decode the signals. As a result, these systems are very heavy, difficult to install, expensive to maintain, and prone to failure. The Lumexis system is approximately half the weight of older, legacy systems from other suppliers, providing airlines dramatic fuel savings.
“With many investment options to choose from, this new funding from Perseus and the renewed support from our existing shareholders demonstrates the confidence that they have in the Lumexis technology and management team. The clear advantages of the FTTS™ system have also led to securing a major contract with a highly innovative airline,” stated J. Douglas Cline, Lumexis Chief Executive Officer.
Perseus Senior Managing Director Dave Davis continued, “We made this investment because of the clear benefits of the Lumexis FTTS™ system relative to the competition. Airline customers are looking for an in-flight entertainment system that is affordable, reduces fuel burn through lower weight, and is easy to maintain, operate, and upgrade. The Lumexis system delivers on all of these attributes. In addition, Doug and his team are industry veterans fully committed to excellent customer service and satisfaction.”
Ed Shapiro, PAR Capital Management Vice President, added, “We are pleased to have Perseus join us in this investment. I have known Dave Davis for several years and kept him apprised of the progress Lumexis has been making since we made our original investment in 2007. This investment, together with Lumexis’ new 737 customer, are important validations of the opportunity we see in Lumexis.”
About Lumexis Corporation
Lumexis Corporation is a developer, manufacturer and marketer of advanced in-flight entertainment and communication systems built on a core competency in fiber optics technology. With headquarters adjacent to Orange County, California’s John Wayne Airport, the company can reached at +1.714.641.4900 or on the web at www.lumexis.com.
About Perseus, L.L.C.
Perseus, L.L.C. is a private equity fund management company headquartered in Washington D.C., with an office in New York and an associated office in Munich. Perseus has invested in numerous growth equity, distressed, and buyout transactions in the United States, Canada, and Western Europe. Perseus manages seven private equity funds. Since its inception in 1995, Perseus has made investments in 62 portfolio companies and has $1.5 billion in funds under management. www.perseusllc.com