SHM notes:
(from jtdiii on Agora....Thanks John!)
jtdiii SHM notes...one liners only
From jtdiii
PostID 297974 On Sunday, December 07, 2003 (EST) at 7:26:09 AM
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About 100 in attendance
Best info came after the meeting...by far
01K branding royalties/licensing (to GTW and others) in the 'high single figure to low two figure range'.... (this may or may not not include any applicable NRE fees)
Fujitsu-10/telematics royalties/licensing in the 'mid to high two figure range'... (this too may or may not include any applicable NRE fees)
IFE/APS/PVP royalties/licensing in the 'low three figure range'... (this also may or may not include any applicable NRE fees)
There is another brand of the 01K (other than GTW) that will also be manufactured by the same multi billion $ OEM....this should be forthcoming fairly soon.
GTW fully anticipated a 'late launch' of their jukebox, but was more concerned with 'getting it right' than 'rushing to market'.
The 'late launch' was not e.Digital's fault. Our engineers were even diligently working on the final GTW applications while their own homes were in peril from the fire, working to beat the GTW deadline.....an incredible display of dedication.
Hitachi 1.8HDD orders were filled for Creative/DELL before the orders were filled for our OEM/GTW (understandable business decision and primary reason for the delay to market)
Creative/DELL is however experiencing miserably high return rates already, in the 35-40% range (ouch!)
Although Eclipse/Fujitsu 10 is now in production, the initial 4K order may not all be realised in this qtr.
Fujitsu 10 production had been delayed due to FT asking e.Digital to interface with other more complex functions as well.
Upon positive retail feedback on the initial 4K units, F-10 will then probably make requested adjustments (if any) and produce the next 4K units, perhaps followed by countless more in the form of factory options for major middle and high end automakers.It will happen.
APS/Boyer gave an airline 'exclusivity' to Alaska Air, but that exclusivity will expire very shortly. The announcements of other major airlines will be made once this expiration date has transpired. It will happen very soon.
The critical importance of our video device(aka digEplayer) cannot be underestimated...The initial order from APS was 4000 (yeh that figure again). Another order of only 1500-2000 would easily exceed our current burn rate. It will happen.
Burn rate will continue to drop with frugal practices and further outsourcing, primarily to India....e.Digital will concentrate on existing platforms and the convergence of these platforms....homeruns are the order of the day.
Both of the 'convergence OEMs' were introduced/recommended to e.Digital by a very credible third party (my guess is TI, whose booth we will be in at CES)
One of these OEMs had requested that e.Digital raise the exact amount of $1.2 million. Had the OEM asked for more, e.Digital would have done that as well, but all they asked for was the $1.2mil.
These funds were raised by 14 different individuals and as 14 different units as well with amounts ranging from $25,000 to $300,000. There was no 'overlap' of individuals from the previous funding (in other words, the Polis family/etal was not involved in the $1.2 funding)
The negotiations with the two 'convergence OEMs' is in advanced stages...lawyers and all. e.Digital is 'choosing' their projects and is only interested in highly profitable, long term homeruns.
Although PRs regarding these 'convergence' OEMs may not come about in an immediate sense, the actual agreements are progressing extremely well and are truly in final stages.
Having said that, the 'core licensing' project/strategy is not advancing as fast as e.Digital would have liked.
The exact and final gross revenues for QTR 3 (10/1/03-12/31/03) will be determined by the Eclipse/Fujitsu Ten production schedule. There is a possibility that a portion of the revenues from the 4000 units will fall into QTR 4 (1/1/04-3/31/04)
EPILOGUE
I have been an 'open minded' long for the past 3 years, and have at times been extremely critcal of the past actions and judgement of individual e.Digital management and individual e.Digital board members. I have even been accused of being a 'basher' on this and other boards....and I own over 200,000 shares. At times,the naivety,ignorance and narrowmindedness of a selected few posters on Agora has angered me just as much as Cocumelli and Ramseur(sp) not participating in the open market.
However, having said that, I now have more verifiable confidence than ever of e.Digital's substantial financial success. Bottom line,the float no longer bothers me in a significant way. I look at my own portfolio, and feel comfortable in knowing that e.Digital probably holds more near term and more long term potential for share price appreciation than any of my other individual holdings.
I am not a regular poster on this board and my schedule even precludes me from being a frequent lurker. I am aware that this post may give fodder to both positive as well as negative comments. In all liklihood, I will not have the time to respond. However, I can assure you that this post was made as a result of specific answers to my own extensive, objective and at times miserably blunt questions to e.Digital personnel prior,during and most particularly after the SHM. Good luck to all true longs.
jtdiii / John
Who is this Time Being, and why are we always doing things for it?
AI
