e.Digital Corporation (fka EDIG)

[Cassandra]

Another misleading press release.

APS announced last week that it signed an agreement with Alaska Air for the purchase of "as many as 6,000" units (presumably the original 1,000 units are part of that number). http://biz.yahoo.com/prnews/040204/sfw128_1.html

e.Digital is not a party to that agreement. (APS announced today the sale of its new in-flight entertainment system, the digEplayer (TM) 5500, to Alaska Airlines. The units will provide video and audio on demand to passengers of Alaska Airlines for at least the next 5 years according to the agreement signed this week between the two companies.) Furthermore, it does not appear that APS has yet placed any further orders from e.Digital as a result of that agreement.

The wording of today's PR makes it sound like Alaska Air is buying units directly from e.Digital, when, in reality, e.Digital is simply reiterating that APS has signed an agreement with Alaska. Seems bizarre to issue a PR about e.Digital's customer (APS) reaching an agreement with its customer (Alaska).

It will be interesting to see the margins on these players when the 10Q is released.