There is too much emphasis on "fault" instead of the truthfulness of supposely factual statements made by management IMO.
Was there anything factual behind their claims that Eclipse asked for design changes to fit multiple head units?
Facts to support the Eclipse was pre-selling all of them?
Facts to support that they were in "full production" and ready to ship back in early December?
If they were in full production, who was manufacturing them, Maycom or Orient Power (10Q said it would be Maycom).
We know that the claim of "Write Behind" being patent pending for e.Digital was completely false. No patent ap was submitted supposedly due to financial constraints.
From reading the SEC filings and in my discussions with Eclipse, I'm not sure there ever was a signed order from Eclipse to have these devices manufactured through e.Digital. The SEC filings would indicate no order ever existed.
My take on the situation is that e.Digital designed a prototype of a hard-drive based jukebox for Eclipse that had an issue with temperature ranges under which it could be used. Perhaps Eclipse was never sure if they wanted to commit to it? I believe e.Digital hoped to get an order, but did they ever truly have it?
Clearly, Eclipse was developing much more multi-functional AV devices during the last couple of years that they are now launching. The HD jukebox just isn't that high tech compared to what they have now.
IMO the issue is really about factual truthfulness and I believe there is substantial reason to doubt the statements management has made about what was really going on with Eclipse.
I have seen them do this too many times with Maycom, EASTECH, HyTek, Remote Solution/Hango, etc.
Some poster keep saying that the unrealized products weren't e.Digital's fault. But in all of these cases, it was e.Digital and not the companies themselves making announcements and telling shareholders about shipping dates and production status. What if e.Digital was just abusing "forward-looking language" to string shareholders along thinking that products were imminent until they could get the next carrot out there?
If Eclipse never placed a signed order, then they have no fault at all in why the order didn't materialize.
I think it's time for management to start proving the factual basis for the claims they make. Clearly they are avoiding it. That is very telling.
AI
