e.Digital Corporation (fka EDIG)

[Cassandra]

Tinroad: Gateway did not give EDIG the business, they gave it to an "Asian OEM." I would not be at all surprised if they chose to deal with the OEM instead of EDIG because of e.Digital's horrendous financial situation and lack of credit worthiness.

It would make no difference to Gateway if e.Digital went belly up. They aren't relying on EDIG for anything. All that EDIG gets out of the deal are per unit royalties from the OEM and that likely to be very small IMO.

As I said yesterday, I assume that e.Digital met with Gateway since it is local. For whatever reason, Gateway choose to go direct to an OEM and not go through e.Digital.

If e.Digital were getting the revenue for the manufacturing as well (as in the Softeq and APS deals), now that would add very significant revenue. But it was not to be.

That's the problem of having horrible credit and a poor balance sheet.