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ONT dropped from 35 to .08 and faced delisting from the AMEX during the same period EDIG and the entire stock market, for that matter, was in a tail spin.
You think those who bought it last year for less than one thin dime are smiling now and could care less what negatives were being posted regarding operations, losses or going concern statements ?
Truth is that companies emerge from bad times after readjusting their business models. ONT has its proprietary technology and the POTENTIAL for growth and I doubt investors today are concerned with last year's losses or whether the outstanding share count is 40, 65 or 150 million as one or two deals make this a turn around candidate.
The market looks hungry to find the next break out candidate that beats the odds.
"The AMEX staff notified the Company in June 2002 that the Company has fallen below Section 1003(a)(i) of the AMEX Company Guide for having shareholders' equity of less than $2,000,000 and losses from continuing operations and/or net losses in two out of the three most recent fiscal years. The Company was afforded the opportunity to submit a plan of compliance to the AMEX and presented its plan to the AMEX in May 2003."
SSI, I would guess that investor sentiment shifted swiftly with enlightenment of business moving forward into an improving economy. They own the PROPRIETARY TECHNOLOGY in this licensing deal and the market RESPECTS that value.
ALL FORWARD LOOKING too !!! No mention of specific revenues or details of the deal...targeting FUTURE markets and applications.
On2 Technologies, Inc. Licenses STARK Co. Ltd. in Japan VP5 for VOD to PC
STARK to Aggregate Film Library for New on Demand Initiative
NEW YORK, July 8 /PRNewswire-FirstCall/ -- On2 Technologies, Inc. today announced that it has licensed its VP5 codec software to STARK Co. Ltd. (www.stark.co.jp) for use in the new STARK VOD System that will target PC users with on demand content. STARK and its subsidiary, Cinema Cruise Inc. (www.cinemacruise.com), are working with major studios to aggregate content for the project. Stark is headquartered in Osaka, Japan.
"It is very exciting for us to be part of a new VOD system with a new Japanese customer. VOD to the PC is one of the platforms that will be essential to long-form content making its way to consumers using IP and VP5 is an ideal solution for this," said Douglas A. McIntyre, On2 Chairman, President and Chief Executive Officer.
"We will be able to enhance our VOD service by adopting On2's VP5 codec since it can provide high quality pictures with low bit rates. VP5 helps minimize a movie's size, which both content distributors and users find beneficial," commented Kunihiro Maeda, STARK President and CEO.
Tenderloin, the zen screen is mini and they pulled both the record capability and the firewire to apparently accomodate the greater capacity HD.
Not sure why they'd pull features to go to 60 gigs. At some point how much memory is enough ?
Seems to me 40 gigs is enough and I'd rather have the 1.8" HD with more features and the big screen and record capability(like the O-1000)will/does have.
the 1.8 HD seems to be the only ipod advantage to this point, which looks to be remedied later this year.
Should be an exciting year with multiple products slated for market.
cass, please supply us with the terms of the contract which specify the payment mode from which you recite regarding EDIG's payment schedule/sequence.
But from this investor's point of view, getting paid in a timely manner is first and foremost. Whether the check goes through Softeq or not is not my concern and I'm not sure why it is yours either.
The partnership/relationship is generating revenues and that should make you happy that this company is achieving success on this initial project with Softeq and Hewlett-Packard and that unknown MAJOR OEM.
Do you think the MAJOR OEM knows who they got this shipment from or are they not concerned with such details ?
I beg to differ cass, we do know.
Date: 7/9/2003 11:07:00 AM Pacific Standard Time
From: robert@atcsd.com
To: XXXX
File: Unknown (1825 bytes) DL Time (TCP/IP): < 1 minute
Sent from the Internet (Details)
Thank you for your e-mail, XXXX. The finished products are in possession of
the major OEM customer; they are scheduled to introduce them later this
year.
Best regards,
Robert Putnam
Senior Vice President
cass, it only takes one person to write the check to EDIG. The entire company at HP doesn't need to know of EDIG, just the right people.
By the way, EDIG delivered the product to the MAJOR OEM on time. I am certain Hewlett-Packard is aware of that and quite pleased with the promptness on EDIG's part.
I think it is rather naive to think Hewlett-Packard is not aware of the design and developer of the project that they commissioned. Certainly I would think Softeq showcased EDIG's engineering talents and PROPRIETARY technology to help win over the business. (Bang & Olufsen may even have been used as references for all we know)
the list of those utilizing EDIG's technology continues to get more impressive.
MAJOR OEM on the way !
so you admit that EDIG and Hewlett-Packard have a relationship regardless of how you care to classify it, direct or indirect.
considering they commissioned the project, I am certain they are aware of the e.Digital connection whether or not you choose to recognize that.
With HP ramping up their advertising on how they enhance the consumer experience it would also appear reasonable that EDIG investors take note as this advertising could touch that MAJOR OEM who just took delivery of the EDIG/Softeq product.
I am sure there will be more information on this subject later this year but for now we will just have to stay abreast of the best information available at this time.
You would prefer to not know of HP's latest developments as part of your knowledge base ?
Refresher course on the EDIG-Hewlett-Packard relationship:
e.DIGITAL DELIVERS WIRELESS MP3 HEADSETS
FOR MAJOR OEM CUSTOMER
(SAN DIEGO, CA - July 1, 2003) - e.Digital Corporation (OTC: EDIG) today announced the on-time fulfillment of its design and development project for Softeq Development Corp. announced earlier this year. The project, commissioned by Hewlett-Packard through Softeq, required a custom designed MP3-based wireless headset.
The headset’s mechanical, hardware, software and firmware designs were all developed by e.Digital and use e.Digital’s patented MicroOS™ Operating System. The headset incorporates embedded flash memory containing prerecorded audio files that will interact with strategically placed transmitters.
The major OEM customer for these wireless headsets will be named later this year.
"This delivery completes our first project with Softeq and represents over $1.2 million in orders and development," stated Fred Falk, president and CEO of e.Digital. "Working with Softeq and Hewlett-Packard has been a great experience and we look forward to possible product extensions and follow-on orders as well as new project opportunities with them."
"We challenged e.Digital to leverage their portable design capabilities and provide our customer with a product that could benefit millions of users," said Christopher Howard, President of Softeq. "This product required stringent technical as well as functional specifications, all of which e.Digital met or exceeded."
"This has been a very exciting project for e.Digital," noted Atul Anandpura, e.Digital’s vice president of research and development. "We have been able to showcase a wide range of our design capabilities, our patented technologies and innovation in a single product."
802.11g Products Get Certified
By Eric Griffith
The Wi-Fi Alliance and several member companies today announced that the industry group's fourth product certification program, for 802.11g (following the ongoing testing for interoperability of products using 802.11b, 802.11a, and Wi-Fi Protected Access), has concluded its first round. The products certified will make up the official test bed used by the Alliance labs for all future testing of 802.11g products, according to Dennis Eaton, the chairman of the Wi-Fi Alliance.
"There's a "down selection" process for lack of a better term," says Eaton, that gets us down to a few companies....we want the core technology providers in there, so we know they'll be around for a while." The Wi-Fi Alliance held off on testing 802.11g products until the specification was finalized last month by the IEEE (define). Many 802.11g products had shipped long before that time, based on the early drafts of 11g, including successful lines from Linksys, Buffalo Technology, and Apple. Both 802.11g and popular 802.11b use the 2.4GHz radio band and are designed to be interoperable, though 11g uses a different modulation scheme to get about five times the speed.
The initial test of 11g products features products with silicon from four different chipmakers (Intersil, Texas Instruments, Atheros, and Broadcom) -- in fact, most of the 11g certificated products are in reference designs from the chip makers. Reference designs can be used by original equipment manufacturers (OEMs) (define) to speed the creation of end-user 802.11g products, but any final products must again tested for interoperability by the Alliance. Certification of a reference design and chip, however, gives OEMs assurance that final products will pass without problems.
These first products finalized for 11g certification are part of the 802.11g test bed the Alliance will use in all future 802.11g testing (the refresh the test bed as needed about every year). For example, Texas Instruments (TI) got certification for two reference designs, the TNET1130-powered Cardbus and the TNETWA622-g10-DP access point -- the former will be used specifically in the testing of interoperability between 802.11b and 802.11g products.
Other chips and reference designs given certification include the Broadcom (Quote, Company Info) 54g BCM94306-GAP access point design; Intersil's (Quote, Company Info) dual-band PRISM Duette 11a/g/b chips in an access point (ISL39300A) and PC Card (ISL39000C); and the Atheros AR5001X+ Universal Network Adapter which also supports 802.11a/g/b.
The Atheros chip powers the Proxim (Quote, Company Info) ORiNOCO AP-600b/g products which got certification; the only other end user product in this group was the Melco/Buffalo Technology AirStation 54Mbps WLI-CB-G54(A) notebook PC Card, which uses the Broadcom 54g chip. Companies that agree to be part of the Alliance test bed also must agree to sell their products to members of the Alliance that want to do their own in-house testing before contacting the labs.
Many products coming out these days are dual-band, supporting both the 2.4GHz 802.11g/b and the 5GHz 802.11a. Eaton says that now that 11g testing is underway, any such product coming into the labs will "be required to be certified for both bands." The 11a and 11g tests are still done separately, though in the future they're may be a combined test methodology.
"We also have an inter-band roaming/handoff test for client cards to make sure the card can roam between two bands without user intervention," says Eaton.
The Alliance announced its plans for 802.11g testing in February, long before the specification was finalized -- it did this knowing a multitude of products would be available for testing immediately. That wasn't the case with 802.11a, which, when finalized in 2002, really only had one vendor supplying chips (Atheros).
All of the 802.11g chips above also feature non-standard speed boosts, using draft-802.11e-based packet bursting to increase throughput and/or other methods, depending on the vendor. 802.11e is a specification in-progress meant to provide Quality of Service (QoS) (define) options to future wireless LANs running video, audio, and voice traffic as well as data. Eaton says these tweaks are not included in Wi-Fi Alliance testing, as they are not part of the 11g specification, but doesn't discount testing such things when 802.11e is finalized.
"We might add it in," he says, "it might be good to make sure it's interoperable."
802.11g products are tested for backwards compatibility with 11b, simultaneous 11b and 11g client operation, and support for full 54Mbps data rate. The actual 802.11g specification from the IEEE only requires 24Mbps, with 36, 48, and 54Mbps optional.
There are five separate queues for product testing going at all times in the four labs the Alliance has contracted in (in San Jose, CA, as well as Japan, Taiwan, and England). Eaton estimates that there are about a dozen products a week receiving certification. In the first two weeks that the queues have been open to 802.11g products, the labs have already received 60 applications for testing, a response Eaton terms as "extremely positive."
As of this week, the Wi-Fi alliance has tested 795 products from 110 companies. All those products have received Wi-Fi Certification. The non-profit Alliance was formed in 1999 under the name Wireless Ethernet Compatibility Alliance or WECA, but changed its name to reflect the Wi-Fi branding it created for all things 802.11-based. The Alliance also has a certification program called Wi-Fi ZONE for testing public access hotspots.
Polishing HP's "Precious History"
Marketing chief Allison Johnson talks about promoting the brand and why advertising helped carry the day in last year's Compaq proxy battle
As technology services and products become commodities, compelling marketing has become increasingly critical. "In maturing industries, where speeds and feeds are less important, brand becomes more so," says Allison Johnson, Hewlett-Packard's (HPQ ) senior vice-president for global brand and communications. "Increasingly, people are recognizing the power and importance of brands."
HP will spend some $400 million in 2003 on its Plus HP brand advertising and marketing campaign, which focuses on how HP products are helping its customers. (The campaign is summed up as "Customer + HP = Everything is possible".) That compares to virtually no money spent on the brand in 2002, a year in which HP poured much of its $1.4 billion overall advertising budget into ads arguing the merits of the merger with Compaq. In the spring of 2002, after a bitter and divisive proxy fight that pitted CEO Carly Fiorina against Walter Hewlett, son of one of HP's founders, shareholders approved the Compaq deal.
The Plus HP brand fits in with Johnson's belief that creating an emotional link to HP is key to the company's ability to differentiate its products from those of competitors. This became all the more challenging because of the merger with Compaq, but the integration appears to be taking hold without major problems. And, Johnson figures, aggressively communicating HP's brand and mission has played a key part in reaching the outfit's diverse customer base: large corporations, small businesses, and individual consumers (see BW, 7/14/03, "Can HP's Printer Biz Keep Printing Money?"). BusinessWeek Online Reporter Amy Tsao spoke to Johnson about these issues on June 27. Edited excerpts of their conversation follow:
Q: Much has been made of the notion that under Carly Fiorina, HP seems to be more focused on marketing and less focused on innovation. What do you make of the criticism that HP is a marketing machine?
A: It's terrific to be accused of doing great and aggressive marketing. It's something the company hasn't traditionally been credited with. I want us to be seen and heard.
Q: How have the proxy fight and merger tarnished the HP brand? What steps have you taken to mend it?
A: What's interesting is the Interbrand survey [from 2002] -- which was done in the January-to-April time frame, precisely the time we were in the middle of the proxy battle. Our brand value went up a point as opposed to down. So, I don't believe there was too much tarnish to the brand based on empirical data.
We broke the mold on proxy-based advertising, much to the initial concern of our proxy solicitors, because we weren't willing to do traditional proxy advertising. If you take a look at the kinds of proxy advertising we did -- which was to tell the positive case for the merger -- compared to what our competition did and what is normally done in proxy battles, ours was a huge departure.
Q: Do you think that better marketing helped HP win the proxy fight?
A: I think a number of actions were enormously important. [Marketing was] one component. I wouldn't put it all on advertising, but it was an important piece.
Q: HP is involved in a lot of segments of technology, which in turn reach different audiences. How do you divide resources between consumers and the business audience?
A: One powerful aspect of our brand is that it spans the enterprise and consumer markets. That makes it a brand that can aspire to iconic levels of visibility, similar to Coca-Cola (KO ) or Nike (NKE ). It's a powerful [testament] to the brand that you see it both in business and in everyday life.
We really benchmark how we divide our people and program ratios to our toughest competitors and make sure that we're adequately supporting the brand in the consumer, small-business, and enterprise segments. We track that very carefully and have a very good handle on it.
Q: What do you want people to think of the HP brand?
A: I want them to think this is a brand that really understands and cares about the role of technology in business and life, and [that] it's a company that wants to make a contribution on many levels. In contrast to some of our competitors, it's a brand that understands the power of technology, not just the complexity of it.
If you take a look at Dell's [Dell] advertising, it focuses on its business model. [I think] it's hard to build an emotional link to a brand that is about a business model. IBM's (IBM ) tends to be about the fear of technology, where tech has failed, and why you need IBM. Ours is about the importance of technology in business and life -- the positive influence -- and HP as an important ingredient of that experience.
Q: What challenges are unique to marketing HP, vs. other brands you've helped manage, such as IBM or Apple (APPL )?
A: What's interesting about working on HP's brand is that it's a global brand with a precious history. You have a whole lot of accountability and responsibility to preserve and protect that. That was first and foremost on my mind as we were working on the proxy battle. We couldn't do anything to tarnish that brand. It's a hugely valuable asset.
Q: I'm sure you're heard the reports of dissent within the ranks at HP. How have employees responded to your branding efforts?
A: It's important to separate fact from fiction. A lot of what was really happening was different than what was reported on the outside. We had a meeting this past week for all employees worldwide. They love what they're seeing from the perspective of the company being about relationships with customers and the positive role of technology in the world. My job is enormously important in the context of helping employees through the change and cultural evolution we're going through.
Q: What return has HP seen so far from the $400 million investment earmarked for 2003 on brand advertising?
A: The return is on several different levels. So far, we've profiled 30 customers in the Plus HP campaign, and we have 150 customers who've raised their hands and want to participate, which is unprecedented. We've fielded several deals as a result of the campaign.
Clearly, for the morale for HP employees, it has been a wonderful campaign. We've also seen our awareness and preference numbers, particularly in the enterprise segment, improve significantly.
Q: How does your ad budget this year compare with previously?
A: Whereas we used to spend more on what I would call traditional product and price-based advertising, we're now focusing roughly 50% of our advertising budget on brand-level advertising and the remaining 50% on product and price-based ads.
In 2002, we spent almost no money on brand advertising. That was because we were going through a merger and integration, and we were in tough economic times. It made sense. Now, we have to change the mix.
Q: What's your outlook on tech ad spending?
A: Strong companies will continue to be stronger, and the weak will get weaker. It's a matter of the companies who've been able to adjust their business models and get their cost structures under control. Those who can invest in brand and marketing are doing so. IBM, Dell, Microsoft (MSFT ), Intel (INTC ) and HP are in the market.
http://www.businessweek.com/technology/content/jul2003/tc2003079_4777_tc121.htm
EDIG 0.285 +0.015 0.275 0.285 215,100 14:12:51
gernb1, and how about the maintainance costs for all those parts as opposed to just replacing a defective handheld with no downtime to any airship ?
but the fear of the wiring effecting flight safety would be the biggest negative should that story get legs, not to mention your point of fuel costs...self defeating if they expect it to be a revenue generator.
EDIG 0.285 +0.015 0.275 0.285 143,000 12:02:12
thanks "pre", always appreciate fresh quotes !
EDIG 0.28 +0.01 0.27 0.285 106,100 10:32:00
In-flight entertainment systems linked to scores of jet 'difficulties'
By Gary Stoller, USA TODAY
As a Boeing 757 airliner climbed to 14,000 feet in March, a routine takeoff suddenly became an emergency. Sparks and smoke came out of the passenger cabin's in-flight entertainment system, cockpit instrument lights lit up, and the rudder and control wheel moved.
The Canadian government said an entertainment system wire or another wire on Swissair Flight 111 short-circuited.
AP file
The pilots, who reported the incident to a government safety database, said they returned for an "uneventful" landing. The database doesn't identify the airline involved or the U.S. airport the flight diverted to, but the timing of the event was significant.
It was the same month the Canadian government concluded that entertainment system wiring may have caused or contributed to a fire that sent a Swissair jet into the ocean near Nova Scotia in 1998, killing all 229 aboard. The Canadian Transportation Safety Board said an entertainment system wire or another wire short-circuited, creating a fiery electric arc that ignited acoustic insulation blankets.
Despite intense scrutiny after the Swissair accident, in-flight entertainment systems continue to malfunction, and U.S. airlines are still being ordered to modify some systems.
A USA TODAY analysis found that since the Swissair accident, U.S. airlines have sent the Federal Aviation Administration 60 "service difficulty reports" about in-flight entertainment systems, many involving fire, smoke or sparks. Airlines are required by the FAA to report within 72 hours each "failure, malfunction or defect" that endangers an aircraft's safe operation.
Pilots and flight attendants have voluntarily reported to another government database 20 incidents of entertainment system problems. It's unknown how many of those incidents are also included in the service difficulty reports.
The FAA has also sent 22 orders to ban, modify or repair certain entertainment systems. Most of those orders resulted from an investigation done by the agency after the Swissair crash.
"The time is long past that we can consider these systems as risk-free," says Jim Shaw, a pilot and a safety expert for the Air Line Pilots Association union. "I know many instances where problems with in-flight entertainment systems created smoke and fire events," he says, speaking for himself. The union wouldn't comment.
Many jets have traditional in-flight entertainment systems with overhead movie screens shared by rows of passengers. Others, particularly new, wide-body planes flying international routes, contain more sophisticated equipment with individual screens that allow passengers to choose a movie, play games, shop or gamble. Upstart airline JetBlue offers live satellite TV on monitors at every seat.
Some major airlines offer video or audio entertainment on most of their planes, while some, such as Southwest, have no jets with such equipment.
Consultant Wale Adepoju estimates that 5,100 of 11,650 planes worldwide with 100 or more seats have some form of entertainment system, and about 2,000 of those aircraft have at least some seats equipped with individual video screens. Of about 3,700 wide-body aircraft in the global airline fleet, nearly 80% have some form of entertainment system, Adepoju says.
Manufacturers insist that the most sophisticated entertainment systems, as well as older ones, are safe and meet FAA standards. They blame the type installed on Swissair, which was banned a year after the crash, for giving everyone in the industry a bad name.
That system, built by a Phoenix company now out of the airline business, was put on to replace an existing system and pioneered interactive entertainment at each seat. But, as a USA TODAY investigation found in February, it was improperly designed, installed and certified by contractors without adequate FAA oversight. The General Accounting Office and the Transportation Department's inspector general recently began investigating the matter.
Other systems, though, have had problems since the Swissair accident. Safety experts say the number of service difficulty reports about entertainment system problems endangering passenger safety during the past two years could far exceed the 60 received by the FAA.
"The 60 reports are probably just the tip of the iceberg," says Alex Richman, whose company, AlgoPlus Consulting, analyzes FAA data for some aircraft operators. "More incidents probably go unreported than are reported."
The FAA's 22 orders to ban, modify or repair entertainment systems involve those that airlines installed to replace previous ones. The orders apply to the equipment on eight types of Boeing, McDonnell Douglas and Airbus jets.
More pounds, more wires
An entertainment system adds thousands of pounds to a jet. It consists of more than 2,000 parts and, on a fully equipped wide-body jet, uses about 41/2 miles of wire, says Greg Steiner, a vice president at entertainment system manufacturer Rockwell Collins.
Ed Block, a former Defense Department employee involved in wiring purchases, inspected wiring on various jets for an FAA task force and for Swissair victims' families. It's his opinion that all in-flight entertainment systems should be banned because they have electrical wiring and components that can malfunction and start a fire during flight.
The aviation industry has been grappling for years with problems of cracked and deteriorated wiring causing fires and emergency landings, he says. Adding four miles of entertainment system wire to a jet that may have more than 100 miles of other wires is "like throwing gas on a fire."
Ken Adams, who was the Air Line Pilots Association's lead investigator in the Swissair crash, doesn't think the systems must be scrapped. But he says they need to be better designed and suggests studying the use of fiber-optics instead of electrical wiring. "Any time you're adding more and more electrical systems, you're compounding the problem," he says.
In a statement to USA TODAY, the FAA says entertainment systems are safe and that it "takes a very rigorous approach to approving non-essential systems." The agency says it has done in-depth reviews of the entertainment systems on airplanes, has taken action to make sure no system in use has the same design features as the one on the Swissair jet, and has issued directives designed to prevent any unsafe conditions from developing.
Manufacturers say their systems must meet FAA and aircraft manufacturers' standards and tests. "Safety is the absolute first priority," says Rob Brookler of the World Airline Entertainment Association, which represents manufacturers, suppliers and airlines. "We'd support any procedures that would further enhance the safety of the systems."
The Air Transport Association, a trade group representing U.S. airlines, refused to comment about in-flight entertainment systems. Northwest Airlines, which flies many long-distance flights with such systems aboard, says it buys "the appropriate, proven system recommended by the aircraft manufacturer." JetBlue says the airline's in-seat live television systems were certified by the FAA. The airline says it has had "no issues" with them.
United Airlines says its in-flight entertainment systems are safe because they are continuously monitored by its maintenance department "for any irregularities or reliability issues that require attention." United says its systems have not been cited in any FAA orders and are not similar to those that were on the Swissair plane that crashed.
Reports of problems
Most of the 60 reports filed by airlines with the FAA, which were provided to USA TODAY by AlgoPlus Consulting, mention fire, smoke, sparks, an electrical short-circuit or burning odor in the passenger cabin. NASA collects such incident data for the FAA. Among the confidential reports given to NASA by airline flight crews, which NASA says are not verified for accuracy:
• A flight attendant on a Boeing 767 flight last August reported that she became nauseated, her eyes and throat burned and a passenger vomited after breathing fumes from a malfunctioning video system.
• On an Airbus A-300 plane in December 2000, a flight attendant reported passengers standing in the aisle during landing as "smoke, sparks and a flame" came from an entertainment system box under a passenger seat.
• A pilot reported smoke "pouring out" of an entertainment unit on a 767 international flight in April 2000.
• In February 1999, a flight attendant on a McDonnell Douglas MD-11 flying over Alaska said it was hard to breathe because of a burning wire odor coming from a video system.
The FAA says such reports from crew members are voluntary and can't be used to decide how prevalent a problem is.
The 22 orders from the FAA after the Swissair crash came when the agency reviewed systems that, like the one on the Swissair McDonnell Douglas MD-11 jet, were put in as replacements between 1992 and 2000. The orders involved systems on at least 182 planes, including removal of the entire system on six Douglas DC-9s. It also ordered removal of an unspecified number of systems on DC-10s and 767s. And corrections were ordered for some systems on other 767s, 757s, 747s, 737s, MD-11s, DC-10s and Airbus A-340s.
Ten of the 22 orders, including one issued in December for an unspecified number of 767-300s, instructed airlines to install switches that allow the systems to shed an electrical load or to be turned off without affecting other aircraft systems. Also in December, the FAA proposed that some system components on some 737s and 757s be inspected and the wiring possibly replaced.
Last month, an order took effect requiring that airlines operating 37 767-300s install new electrical components in the systems within 18 months.
In its statement, the FAA said its orders to airlines about entertainment systems are not a sign that planes equipped with them operated unsafely, but are meant to prevent unsafe conditions from developing.
Many of the agency's orders, however, state that an unsafe condition exists. For example, in its order for the 37 767-300s, the agency said: "The FAA has determined that an unsafe condition exists." The entertainment systems are connected to an electrical source "that cannot be deactivated without also removing power from airplane systems necessary for safe flight and landing."
Scott Toner, principal certification engineer for Matsushita Avionics Systems, the largest in-flight entertainment system manufacturer, says that could be interpreted to mean that flights flew with unsafe systems. "An airworthiness directive may identify a problem that wasn't recognized when we designed the system. When the problem's found, we take care of it," he says.
The in-flight entertainment industry generated more than $2 billion in revenue in 2000, according to a study by consultant Frost & Sullivan, but has been devastated, along with the rest of the airline business, by a sharp business decline after the Sept. 11 terrorist attacks.
For financially ailing airlines, upgrading entertainment systems is not a top priority, industry executives say. Northwest, for instance, says its newer jets include entertainment systems with "new, proven technology" recommended by aircraft manufacturers and tested for safety. The airline says it usually doesn't upgrade the systems already on older jets.
That the systems raise safety concerns is contrary to their purpose, says an entertainment industry expert: distracting passengers who don't feel safe. "Airlines still feel the need for in-flight entertainment to keep people occupied and calm," says consultant Rich Salter, who designed a map passengers use onboard to monitor their flight. "There are a significant number of nervous fliers, and an entertainment system can keep their minds off the flight."
Historically, airlines have said they equip planes with the systems because passengers want them. "Most airlines say their return is in customer satisfaction," says Brookler. "I haven't heard anyone say the system pays for itself." But as the systems become more interactive, airlines can generate more revenue from advertising, as well as from passengers who choose to shop, surf the Internet or watch a pay-per-view movie.
American Airlines equips its jets with the systems because "customers expect some in-flight entertainment, especially on long flights," says spokesman Tim Kincaid. He says the systems also help American stay competitive.
But Candace Kolander of the Association of Flight Attendants union says the airline industry has become too obsessed with pleasing passengers. "We may be pushing the entertainment systems too far and not stepping back to consider safety," she says.
Certifying the systems
Nick Lacey, an aviation consultant and a former top FAA official, is particularly concerned about the FAA's policy of allowing private companies or individuals to certify design and installation of entertainment system retrofits on aircraft. The FAA allows manufacturers to use their own employees or hire contractors to certify their products.
"I believe the FAA process of determining the skills needed for certifying a modification project has never worked," says Lacey. "As the program exists now, it seems to me that a designee can inadvertently wander beyond his area of competence, or make a mistake, and it might not be picked up. That is unacceptable."
In its statement, the FAA said that its "delegation programs have served the aviation industry and public well since 1927." The agency said it has set more specific policies for designee qualification and oversight.
Some entertainment company officials say they are increasingly relying on aircraft manufacturers Boeing and Airbus for guidance in their systems' design, installation, type of wiring used and interface with existing electrical systems on the planes. Airlines demand such input, they say.
In a written statement, Boeing says it "establishes the environmental, electromagnetic, flammability and airplane interface requirements" that the system manufacturers must meet. The requirements, Boeing says, are similar to those required for critical flight systems.
Airbus spokeswoman Mary Anne Greczyn says the company has rigorous standards for entertainment and other aircraft systems. Airbus provides extra protection on entertainment system wiring by using sleeves and other materials, she says.
Lacey believes planes are safer without the systems. "We could choose to do without fancy entertainment systems," he says. "A good book works for me."
"Manufacturers won't reveal how many car kits have been sold. However, a Zelos Group June 2002 report estimates that there will be 750,000 car-kit shipments in 2003--and approximately 5 million by 2006."
Bluetooth Hits The Streets
Amy Wu, 07.07.03, 10:00 AM ET
NEW YORK - So far, the most interesting use for Bluetooth wireless technology to catch on among consumers has been the wireless hands-free headset for mobile phones. But the potential the technology holds is so much greater than that.
The folks at the Bluetooth Special Interest Group are hoping to spread the religion of Bluetooth much further in the coming months, and the place they've chosen to focus on next is in the car.
Sony Ericsson's Bluetooth car kit
It's the next logical step, says Mike McCamon, the industry group's executive director. "70% of all mobile-phone calls are taken inside the vehicle, so I'd think the most natural place for these car kits would be in your automobile," he says. "We see car kits as a key to mainstream consumers."
In case you missed it, Bluetooth is a wireless technology that connects electronic devices to each other over short distances. It's a great way to eliminate data cords that would otherwise make the connection between them. It officially launched in 2001 and the latest revision, version 1.2, debuted in June.
McCamon has his finger on something: There are currently an estimated 147 million mobile-phone users in America and 38% of them gab behind the wheel, according to a survey by Sony Ericsson, the joint mobile-phone venture of Sony (nyse: SNE - news - people ) and Ericsson (nasdaq: ERICY - news - people ). In other words, kit manufacturers have to make a case for Bluetooth not just to mobile professionals and gadget fanatics but to soccer moms and the average Joe on the street.
Safety will likely play a key part of the message. In recent years, a growing number of legislators have been lobbying to ban cell-phone talking while driving, according to the National Conference of State Legislatures, a Washington, D.C.-based nonprofit that helps citizens lobby. Already, driving and talking on the cell phone is illegal in New York, and currently seven states including California have similar laws in the pipeline.
The American Automobile Association also argues that cell phones and cars don't mix. According to a 2001 AAA survey cell phones triggered 1.5% of accidents, said AAA's Mantill Williams. "It's the one thing that bothers people because it's the one distraction that people can see," Williams says.
Enter Sony-Ericsson's Bluetooth car kit. Playing on pending legislation and the start of the road trip-heavy summer vacation season, Sony Ericsson recently demoed its HCB-30 kit in a vanilla-colored Hummer. Here's how it works.
The minute Allen Mani, Sony Ericsson's regional training manager, climbed into the Hummer, a light on a matchbox-sized device installed near the ignition turned green, indicating that his Sony Ericsson T616 mobile phone (which itself was released on July 1) and the car kit had bonded. In Bluetooth lingo, this is called pairing the devices.
And because the address book and the device had been paired, the Bluetooth kit can automatically dial a phone call with a single voice command. The device can store up to 50 voice tags and--at the single press of a button--a call can be commanded to go directly into voicemail.
Nicky Csellak-Claeys, Sony Ericsson's North American marketing head, pointed out that in the future many other Bluetooth-enabled items such as the PDA and laptop computer could jive with the car kit too. The kit, launched in May 2003, sells for $249 and costs anywhere from $100 to $200 to install.
Sony Ericsson isn't the only one entering the new car-kit arena. Since March 2002, MobileAria, Delphi (nyse: DPH - news - people ), Motorola (nyse: MOT - news - people ), Nokia (nyse: NOK - news - people ), Parrot and Visteon (nyse: VC - news - people ) have made Bluetooth car kits.
The number of manufacturers making Bluetooth-enabled phones is going up too. According to SIG by early fall all cell-phone manufacturers in the U.S. will have a Bluetooth-enabled phone on the market.
Manufacturers won't reveal how many car kits have been sold. However, a Zelos Group June 2002 report estimates that there will be 750,000 car-kit shipments in 2003--and approximately 5 million by 2006.
Epson Electronics America Announces Release of Single Chip A/V IEEE1394 Controller with Integrated PHY
SAN JOSE, Calif.--(BUSINESS WIRE)--July 8, 2003--Epson Electronics America today announced the release of the S1R72902 ASSP, an IEEE1394 chip with integrated PHY, targeted at Audio-video applications.
This single-chip 1394 IC integrates a LINK/Transaction controller ideal for IEC61883 isochronous packets, 2-port cable PHY, EPSON's S1C33000 32-bit RISC processor and a Flash ROM for the firmware. The S1R72902 includes an IDE interface and a stream interface conforming to the IEEE1394-1995 and 1394a-2000 standards.
IEC-61883 specification for consumer electronic audio/video applications has been defined to handle isochronous streaming data for audio and video over a 1394 interface. To enable IEC61883 isochronous packet transfer, S1R72902 enables automated CIP header and source packet header addition/separation. The stream interface can be connected to separate 8-bit DMA interfaces for inputs and outputs. The LINK/Transaction controller supports bi-directional data transfer in both Asynchronous and Isochronous modes.
"The advantages of this chip include the ability to switch between an IDE interface and stream interface, integration of high-precision, low-noise PHY," said Kiran Koshy, ASIC Marketing Manager at Epson Electronics America. "In developing S1R72902, Epson has leveraged its experience in having mass produced 1394 PHY products for major computer peripheral manufacturers."
Other benefits of this chip include hardware implementation of SBP2 protocol processing, taking the burden off the host processor, and a built-in 8K byte SRAM for stable data transfer up to 400Mbps. The IC also includes an ICD33 interface for easy development of firmware to run on the S1C33000 processor.
"S1R72902 is the first in the series of 1394 products designed by Epson targeted at digital audio/video applications like HDTV, set-top boxes, and home gateways. Introduction of this product broadens Epson's existing portfolio of Interface ICs targeted at computer peripherals," said George Napier, General Manager of IC Division, Epson Electronics America.
The S1R72902 is packaged in 176-pin QFP (24 x 24 x 1.4mm) and is available for mass production in July. S1R72902 costs $6.25 in volume quantities. Samples are currently available. Please contact Epson for samples and evaluation boards.
About EPSON ELECTRONICS AMERICA
Epson Electronics America, Inc. (EEA) is the regional headquarters for Seiko Epson Corporation electronic device and component business for the Americas, covering the United States, Canada, and Latin America.
Information about EPSON ELECTRONICS AMERICA is available on the internet at www.eea.epson.com.
cass, by that lame definition then no one lost anything either in this bear market if they didn't sell.
sell that to the raging bull idiots because those who owned EDIG under a buck and rode it to double digits understand exactly what it means to create wealth.
cass, what do you say to investors who bought IBM over 130 ?
Did you tell them not to buy it at 70, 60, 54 on the way down ?
All those buys on the way down and back up look pretty good today whether or not their short term opportunity costs seemed bad at the time, AND NO, I'm NOT COMPARING EDIG to IBM, and if you think that then my point has been wasted on you.
This is the stock market and prices fluctuate, whether you are in microcaps or blue chips, no one is immune. Those who missed an opportunity always have another opportunity facing them.
While you instructed so many to not buy and average down, many did just that and are sitting with nice positions and long term investment horizons.
wrong cass, few if any made huge sums trading EDIG in 2 cent ranges.
everyone knows the serious money was made accumulating low and waiting for the market to realize the potential.
Today's LA Times article supports that as well as the personal experience of thousands of EDIG investors.
While the bear market has hammered all stocks for 3+ years, whether you were in blue chips, small or microcaps, few performed anywhere near the move EDIG had when the market took notice.
EDIG has refocused their business, cut to the bone and is facing an investment community looking for a turnaround candidate engaged in some hot growth markets with big named players.
Money will continue to flow back into the market for the next two years as we move into an election year with tax cuts, low interest rates, with investor confidence back on the rise.
Today's LA Times Biz section article -
Small Firms Are Huge in Wall Street's Advance
The trend could boost younger companies' finances and make it easier to raise capital.
By Josh Friedman, Times Staff Writer
John Buckingham owns a lot of stocks that other investors suddenly want.
As manager of the Al Frank mutual fund in Laguna Beach, Buckingham focuses on shares of smaller firms, and in this year's sizzling market those stocks are the hottest of all.
Small-stock funds posted greater gains in the second quarter and in the first half than their mid-size and big-stock brethren, on average, according to fund tracker Morningstar Inc. in Chicago.
A popular index of smaller shares, the Russell 2,000, is up 21.6% this year. That far exceeds the 14.2% advance of the blue-chip Standard & Poor's 500 index.
No one can say for sure that this is the start of a bull market, but if it is, smaller stocks are following historical precedent: They usually lead the way when the market is turning decisively.
That could be crucial for smaller companies in California and nationwide, because rising stock prices can bolster the companies' finances and make it easier for them to raise capital for expansion.
The Russell index's advance has been led by its technology shares, just as tech has paced Wall Street's rally overall.
But stocks of small companies in other industries also have been rising briskly. An index tracking consumer-related shares in the Russell index is up 22.6% this year; health-care stocks in the index are up 35.2%.
Small-stock fans say the gains show investors are rediscovering the growth potential in smaller companies, particularly as hopes rise that the economy will pick up speed in the second half.
"Smaller companies are more limber, so they are able to take advantage of an improving economy," said Buckingham, whose $58-million fund climbed 24.8% in the first half of the year.
His portfolio has benefited from such shares as semiconductor component maker Diodes Inc., which is up 127% this year, to $21.85 on Nasdaq on Monday, and Web advertising firm ValueClick Inc., which is up 142%, to $6.74 on Nasdaq. Both are based in Westlake Village.
Buckingham sees similarities to the early 1990s, when smaller stocks paced the market from 1991 through 1993 even as economists fretted about high unemployment and other issues.
Tom Barry, whose Bjurman, Barry Micro-Cap Growth fund in Los Angeles rose 24.4% in the first half, also believes that small companies can continue to lead the market. "They can move faster, cut to the bone, add personnel, refocus the business," Barry said. "They're more nimble, like a B-29 taking on a jet airplane in a dogfight."
Some analysts, however, worry that investors already have pushed stocks of many small companies to levels that are excessive relative to the firms' earnings prospects. That's an issue dogging the broader market as well.
A few years ago, "small-cap stocks looked cheap across the board," said Russ Kinnel, director of fund analysis at Morningstar. "Not anymore."
He noted that although many investors may be newly attracted to smaller shares, the stocks in general held up better than many blue-chip names during much of the bear market.
The Russell 2,000 index beat the Standard & Poor's 500 index from 2000 through 2002.
"It seems a little tough to say that the small-cap leadership will continue, since they've had a pretty strong run already," Kinnel said. "I wouldn't bet big either way."
Small-cap fund managers, however, say they still see good value in many lesser-known stocks. Barry said his portfolio's holdings have a median price-to-earnings ratio, or share price divided by per-share profit for the last 12 months, of 26, which he called low relative to their median earnings growth rate of 85% over the prior year.
"If they can grow at that rate in a lousy economy, they might be able to continue doing it," Barry said, "but even if they grow 50% they're undervalued."
Chris Ainley, co-manager of the TCW Galileo Small-Cap Growth fund in Los Angeles, which rose 21.7% in the first half, said many technology stocks that were grossly overvalued during the bull market got undervalued in the downturn.
One of his holdings is Internet search firm Ask Jeeves Inc. of Emeryville, Calif. The stock soared $2.21 to $16.40 on Monday on Nasdaq, the highest price since 2000. It's up 541% this year.
Wall Street analysts expect Ask Jeeves to earn 28 cents a share in 2003 after losing money in its first four years. That gives the stock a P/E ratio of about 58. But Ainley says that's reasonable based on the company's long-term growth prospects.
He said he also expects solid profit growth from companies such as San Diego-based Gen-Probe Inc., which climbed $2.07 on Monday to a 52-week high of $45.71 on Nasdaq. The company, which makes blood screening devices, is expected to earn $1.10 a share this year, compared with 58 cents last year.
The Frank fund's Buckingham said he still finds value in Irvine-based home builder Standard Pacific Corp., which is up 42% year-to-date. The stock is priced at eight times its trailing 12-month earnings per share, but Buckingham believes the company can continue to grow profit 15% to 20% a year over the next several years.
"When people tell me there's a housing bubble I ask them if they've sold their house and moved into an apartment," Buckingham said. "The answer is always no, and then I ask them, 'Why not?' "
Standard Pacific rose 95 cents on Monday to close at $35.20 on the New York Stock Exchange.
Naturally, many Wall Street veterans are far less sanguine than small-stock money managers these days.
Billionaire Warren Buffett, for one, has cautioned U.S. investors to expect single-digit stock returns in the next few years.
But Buckingham says that's just a matter of the "Oracle of Omaha" — whose holding company, Berkshire Hathaway Inc., is known for sticking with blue-chip names — being in the wrong place.
"He may only get 6% to 7% a year, but that's because he can't buy smaller stocks," Buckingham said. "Those of us who can are going to do better than that."
cassandra, you missed the last huge move, didn't you.
There comes a time when the bottom is hit and it's a great time to accumulate. Never easy to know exactly when but it happens without a doubt.
You can't cry the sky is falling forever.
EDIG vs the indices since April '03--
http://moneycentral.msn.com/investor/charts/chartdl.asp?Symbol=edig&ShowChtBt=Refresh+Chart&...
rstring, sidelined cash in money markets accounts is looking less and less like a good idea, especially considering the pittance accrued is taxed at the personal tax rate while the capital gains tax long term is now 15%, not your personal income level.
Money will certainly continue to find equities as the best alternative in the days ahead. The path is not without peril but the big picture is INVEST.
So many stocks are on sale right now.
In Oct '02 the DOW hit 7300. It's over 9200 today.
Those who are participating quite handsomely today are the ones who were buying well before the rally was evident when fear and doubt remained high.
Every day we see investment advisors increasing their allocations to equities.
Those who were willing to wait out the down turn while positioning when most advisors were cautioning are out performing.
EDIG investors buying down here will have a similar experience, IMO.
Improving earnings on top of news from several new business developments as we continue to move forward into an improving economic climate and this investment will likely make a bold move from here.
Patience and guts. Buying low always sounds easy but is so very hard to do. We are about 1/8th off the 52 week low.
7/26 marks the 52 week intraday high.
07/26/02 1,463,100 0.80 0.63 0.67
FYI
.275~Last 10 trades
Time Price Volume Exchange Info
14:33:26 0.275 1000 OTC BBS
14:28:24 0.275 2000 OTC BBS
14:08:50 0.270 100 OTC BBS at Bid
13:43:09 0.270 2000 OTC BBS at Bid
13:38:37 0.270 200 OTC BBS at Bid
13:36:41 0.270 100 OTC BBS at Bid
13:27:48 0.270 1100 OTC BBS at Bid
13:19:45 0.270 3000 OTC BBS at Bid
13:14:33 0.275 1000 OTC BBS
13:12:01 0.270 100 OTC BBS at Bid
there is a significant difference between a rational and irrational perspective.
ranting and swearing on a message board under an alias, claiming to be an ex-employee and slandering everyone at the company as well as investors in the company is hardly the insight I'd be looking for.
I would venture to guess just about every company exec has ventured onto their company's message boards at one time or another, however, EDIG management has always downplayed the validity of message board info.
the word of a disgruntled ex-employee (or someone claiming to be)is always a good source of information, right cassandra, especially when they post profanity non-stop ?
if he was an employee, I'm glad he is an ex !!!
there are plenty of public companies burning cash and losing money well beyond minimalist EDIG. do we need to name names ?
EDIG's problems are nothing a nice contract or OEM deal couldn't remedy.
and the added dimension of the company's proprietary technology continues to hold water as every new EDIG product unique to its space utilizes the microOS, from IFE to ECLIPSE to WIRELESS to the Odyssey 1000 feature rich DAP offering (whose platform is already 1.8" HDD ready)
how do you know that not having any data to support your case ?
DOP, I think jtara on RB stated that in a survey of San Diego CEO salaries in the local San Diego newspaper, EDIG execs ranked at the bottom for CEO salaries.
So the distraction continues.
Duke, I think most investors realize your point and recognize that discussion is insignificant to the big investment picture and nothing more than subterfuge by a few, some of who are honest but frustrated investors, but mostly from basher tactics by those who continually try to make mountains out of mole hills by distorting matters, not unlike the endless barrage we witnessed about the huge dilution that was to occur by June 30th which did not come to pass.
Investors continue to be patient for continued developments on several business fronts.
this crystal ball loves EDIG long time-VERY BULLISH !!!
http://www.stockta.com/cgi-bin/analysis.pl?symb=EDIG&num1=1&cobrand=
DOW's a rockin'. Shouldn't be too long before EDIG is in ONT territory, considering ONT was in EDIG's range this year.
The market continues to look for those companies who have survived the worst and look forward to new markets.
Video appears to be continuing to come into its own and EDIG looks to be leveraging this trend.
Looking forward to that MAJOR airline making its announcement.
SSI, regarding coming PPS, I think that turning this thing into the black would be a dramatic turn around but I disagree as to the valuations placed based strickly on the earnings.
If you have one major airline do some testing, that is a nice step in the right direction considering this is a new market.
But, if shortly there after you have 9 airlines standing in line to equip their fleets then you have future earnings growth rates to consider and the market would likely valuate that much differently.
The same thing goes with the ECLIPSE and the rate of reorders. And should there be any rumblings from any other interested parties either in aftermarket or for factory installation down the road, again, blockbuster for EDIG.
And how about a 1.8" HDD form factor Odyssey 1000 with any major branded OEM ? We know in the smaller size it outclasses the competition after the recent firmware update, more features at a lower costs. It just needs the exposure that a major OEM can bring.(FM, no battery issues, voice recording, lower price, voiceNAV)
The coming news on the major OEM for the Hewlett-Packard deal could put this back near the $1 range alone, depending on the breadth and depth of the project.
The hard part is guesstimating how long these new markets will take to develop. This together with the bad economic climate the past few years has disappointed many investors but the climate is changing as are the nature of EDIG's most recent deals.
1)MAJOR AIRLINE(s)
2)MAJOR OEM via Hewlett-Packard
3)O-1000 in advance negotiations with major OEM
4)ECLIPSE-with the Fujitsu-Ten//Toyota relationship sitting in the background with a long history of product development
0.28 + 0.0150 (+5.77%) next resistence .33~overall VERY BULLISH rating
http://www.stockta.com/cgi-bin/analysis.pl?symb=EDIG&num1=1&cobrand=