e.Digital Corporation (fka EDIG)

[trillium]

chwdrhed: My understanding is $3-4/device is the minimum / device and here eDigital is referring to the MP 2000. At the top of the range is $14 /device. I would hope we're pushing the high end on most of these contracts with the PJB. I know each OEM brings a different element to the equation, greater or lesser volume, more and better features but the bottom line is EDIG can design the finished product more reasonably with fewer components. OEM's will be willing to contract and pay EDIG's royalties knowing their costs / unit are less and margins more. It is my understanding that the PJB will comprise the majority of EDIG's income for the near term. As such it wouldn't surprise me if the average royalties / device were in the 8 - 10 dollar range.

Just conjecturing but initial orders of 25K units / month for 4 OEM's would yeild about 1M per month. 3M / quarter. Plus Lanier and engineering fees. Even with this conservative estimate it doesn't require much insight to extrapolate what the future holds. The royalties continue to accumulate for the life of the product while the EDIG engineering machine continues to add additional products to the pipeline. God I love this business plan! Larry