e.Digital Corporation (fka EDIG)

[Sinkman]

Somebody knows something...

...oh, wait. In our case, it's nobody knows anything.

Still better than a poke in the eye. Obviously, second fiscal quarter numbers will be out in about 6 weeks. I’m not counting on much more than the 2 million they already forecasted - which is still very good for EDIG. What’s more important will be their guidance (and of course follow-through) on third quarter revenues. It won’t necessarily be an increase over second quarter depending on the timing of new airline orders - which I think will ramp up more or less evenly over the next 6 months. Steady bread and butter income is nothing to sneeze at if it can begin to cover the burn rate (which I would assume is also increasing significantly), but I think they’ll need another solid stream of revenue from something besides the digEplayer in order to begin making real headway. That doesn’t appear terribly likely at this point in time but I can still dream. Another dream would be a very large order from a major airline.

I’m betting they’ll issue a letter/business update sometime yet this month which speaks glowingly about IFE but is otherwise absent solid details regarding other initiatives. I personally doubt any other irons are particularly hot these days and some have probably fallen out of the fire completely. Fusion (and like deals?) seems to offer the best chance for additional success but I fear this will take longer to yield any real benefit than we would hope (just like everything else). All IMVHO.

- Sinkman