Sentinel Speaks to RP.
Conversation with Robert Putnam (6/21/01):
We had about a 15 minute conversation this evening. I have to admit that I couldn't take nearly as many notes as I usually do,and that being said, this is the product of my scrawlings and recollection. Everything is paraphrased and in my own words. Put whatever faith you'd like in it, or none at all....
The highlights:
Not just PC makers interested in bundling. Some CE companies interested as well, and they might "bundle" EDIG product in their online sales ("e-tailing")of other products, or use other channels of distribution.. Some companies will brand the player themselves, while others will bundle players that have been branded by other CE companies.
I asked if the bundling companies would be putting the "Powered by e.Digital" trademark on the product and he said some would, some wouldn't. Nothing new. But he said that in at least one case, e.Digital will have some sort of significant branding opportunity. By this I believe he meant in that the e.Digital name will be prominently displayed on the exterior of the product, and that the "Powered by e.Digital" trademark would be used as a prominent marketing point by the OEM. He wouildn't say too much about it, but it was unique enough that he mentioned it. I don't even bother to ask for timeframes anymore. LOL
We talked about "end to end systems", and where the portable device would be mobile (of course), but also be able to plug into the home entertainment system as well as a car dash system, seamlessly. He said they are working on this with OEM's, designing not only the handheld device, but the software interface as well as docking stations. Our experience with Lanier helped us in this capacity.
Speaking of Lanier, we will definitely get a summary of product shipped as well as guidance about future shipments with the quarterly management correspondence.
For those who are confused a "global standard" means getting enough e.Digital technology into enough name brand devices (from global CE companies) that the e.Digital name becomes recognizable and connotes a reputation for excellence. This is centered around multiple platforms in multiple applications, not just MicroOS. There are other unannounced platforms that they continue to develop, and which we will eventually hear about. He mentioned that they have alluded to them in the past. I think one only needs to read Mr. Falk's last letter to understand where they are headed with this. Again, I didn't ask for timeframes.
We are close to hearing abot one, maybe two , silicon solutions utilizing embedded MicroOS. I don't care so much about the timeframe here as the confirmation that we have at least 2 OEM's in this part of the market.
We are the primary integrator for DataPlay at present, and they fully realize what EDIG can do for them. DataPlay is shooting for end of third quarter/beginnning of fourth for product launch. The trick for them is to establish enough manufacturing capacity for their read/write heads. There are a few different OEM versions of the Orbit platform which will be launched when DataPlay becomes widely available.
Our DataPlay work for Samsung and Toshiba has led to other opportunities with those companies (which of course could not be commented upon).
OEM's have long been asking EDIG for a way to coordinate the whole product cycle, from planning and design to the logistics of post production, testing, fulfillment, etc. OEM's do not wish to build out the infrastructure within themselves, and are willing to give e.Digital an additonal revenue stream if they handle it for them. This is where Jim Collier comes in. He has extensive experience with these processes and has brought a couple of people with him (and may bring a couple more) to help get these process channels established. Robert was very pleased to have Jim onboard I think. Not only will we be paid to design and integrate, but now we will get paid to oversee and coordinate the actual production. This is a real opportunity in that it gains us more revenues, fulfills OEM needs and makes EDIG a one stop shop and super convenient for them, and it also gives EDIG a better idea of the internal OEM timelines for product launch. Because they don't have to staff up for each new product (and assume additional risk), OEM's can now more easily develop multiple products, which will help EDIG's bottom line even more with NRE fees as well as additional royalties.
As far as the recent flurry of content announcements from the Labels and providers, Robert said that we have scene intentions, but not specifics. The jukebox devices are not dependent on the content, but devices like the MP2000 and other flash based players are. When the content actually does arrive, then the market for these players will truly develop.
That's about it. Hope this helps some of you. There was really nothing new and unfortunately I was a bit rushed at the time he called me back. My apologies if this falls short for some of you. My advice is to call him yourselves if you have issues.
Cheers!
AI
