hollywoodhills: I know that you have been questioning why e.Digital keeps promoting "partners" that are not partners at all.
The following is a statement from the recent 10-K about e.Digital's business strategy (pages 5-6) that should explain it to you. You can note from the emphasized statements that much of e.Digital's strategy is simply to attach its name to others and attempt co-marketing opportunities. Clearly this has been a strategy for several years.
OUR STRATEGY
We are currently focusing development, sales, marketing, and support efforts
chiefly on platform and product development opportunities for OEM and ODM
customers and licensees in portable digital entertainment device markets. This
includes automotive entertainment systems. Our objective is to have our
operating systems and application designs play major roles in the growing market
for portable digital devices. Our designs are capable of playing music files
encoded in a number of different music compression formats, and can support a
number of different DRM's. The exterior appearance, button layout, and feature
set in these designs are customizable according to OEM customers' needs. We
believe our flexibility is important as the portable digital audio player (DAP)
and portable digital video industries face choices of competing compression
formats, DRM's, and storage media.
Products designed by us are marketed under a license and/or royalty fee
arrangement. Utilizing strategic customers for product development and marketing
results in reduced development and manufacturing costs, provides high quality
products and creates a broader revenue base.
We offer a total solution from product design through development,
manufacturing, delivery, and support. Our strategy is to build upon our
proprietary technology to develop long-term strategic relationships with key
manufacturers in various industries. We believe we have the expertise and
experience to offer a turnkey solution to major OEMs/ODMs seeking to implement
portable digital audio and video processing. We actively seek licensing, private
label, and OEM/ODM opportunities in the digital audio and video processing
market. Our efforts include:
1. Expanding our business by developing custom products for OEM
and ODM customers - We seek to expand our business through
sales and marketing targeted at obtaining additional product
development opportunities with existing customers and new
OEM/ODM customers.
2. Developing brand name recognition with OEM/ODM customers -
This strategy is being pursued through participation in
industry alliances, trade show participation, professional
articles and attaching our name along with OEM/ODM products to
the greatest extent possible.
3. Expanding the technology base through continued enhancements
of our technologies and applications - We develop in-house
proprietary designs, products, features or technologies that
may be private labeled or licensed to one or more OEMs/ODMs.
Our engineering team continues to enhance and update MicroOSTM
and related technology. We also devote resources to expanding
our technology to new applications. In addition to supporting
music, voice, and video processing, we believe our technology
may have applications in a wide range of products.
4. Leverage strategic industry relationships - We have
established and maintain important strategic industry
relationships and associations with a number of related
companies. We seek to leverage these relationships to offer
better technology integration and solutions to our OEM/ODM
customers and to maximize subtle but valuable marketing and
co-promotion opportunities.
AI
