Tinroad ... Well, since ...
I started all of this, I`m hoping I too can bring it to an understandable conclusion ...
This is the context of my e-mail to Robert ...
In the 9-9-03 press release from Alaska Airlines it was mentioned that they "will offer digEplayer™ units beginning in October". Some time ago it was mentioned that our initial development contract with APS was valued at close to $1,000,000, which I believe included manufacturing and industrial/mechanical design costs [Digitalway] and our NRE/design fees, licensing fees and royalties. Are we still expected to book most of this revenue yet this quarter ? Also, During the last webcast it was mentioned that royalties range "up to several hundred dollars on the audio-video platform", and in this connection I was wondering if there would be much in the way of recurring costs on follow-up orders from Alaska Airlines for the digEplayer other than supplying e.Digital`s proprietary chips with embedded MicroOS technology, and assuming the manufacturing costs are separate from our royalties and again paid by APS to Digitalway directly ?
... In a phone conversation with Robert just a short time ago, he acknowledged that our contract with APS is indeed close to $1,000,000, and whether of not most of that revenue is booked this quarter would depend on when APS wants the units delivered. With regard to follow-up orders, not only did I get the impression that there will be minimal expenses offsetting our royalties, but that any modifications would be paid for by either APS or the airline. Furthermore, manufacturing costs are definitely distinct and separate from our royalties ... for those who are wont to imply otherwise.
I also asked him about the statement he made during the last webcast ...
"And with the airlines alone you ... you look at orders in the thousands of pieces, and times that by royalties in the hundreds of dollars you can see how, just in that industry alone, that revenue can quickly add up for the Company, as well as all the other markets that we`re pursuing with APS."
... he did not deny making it, and when asked more specifically about the other markets being pursued with APS, he indicated that the travel and leisure industry markets would involve both parties, but other markets may, or may not, include APS.
Consequently, I will stand be my "guesstimate" of royalties on follow-up orders of $300, and perhaps even more ... and as Robert stated in the 7-1-03 webcast ...
"We believe all three of these projects as well as the Odyssey 1000 being the fourth line of revenue, as well as some new OEM developments that we`re working on, all of them continue to not only be great revenue generators for the Company, but have significant follow-on orders depending on how they`re accepted in the marketplace, and all of them look like, from our vantage point, to have tremendous upside potential."
NEWe.LONG
