CDR, read hear Webcast summary ( I didn't think it was that great after reading the posts here,but was wrong - it was very good)
CES goal to increase awareness of EDIG technology and products was very successful. O-1000 very well recieved by press and OEM's. Currently in discussions with a # of OEM's for private labeling with their brand name..opening orders in 10 - 30,000 range. Initial production run expected to sell out very quickly. Steps taken to expedite next production run. Sales from website result in much larger profit margin and immediate payment to EDIG. OEM's will brand and sell to large retailers. Shipping of our O-1000 WILL BE first week of Feb.
Eclipse-Fujitsu 10 - pre-production unit displayed was extremely well recieved by their retail and OEM customers. They will take steps to further penetrate car stereo market by offering more aggressive pricing to increase demand. Full poduction and shipping to begin this quarter. EDIG currently contracted to build 4000 units, but this could increase substantially given Eclipse by Fujitsu 10 new marketing plans. Their level of excitement has dramatically increased at/since the CES. Possibility of adding video to his in the future has been discussed.
Discussions with Asian co's interested in our Equator chips video solution for home entertainment products
IFE project with APS and major airline progressing very quickly. This will be our first product to utilize the DIVX video decoder. EDIG hopes to penetrate the travel industy(including cruise ships, hotels, rental cars). After this, products for general market, such as BlockBuster with preloaded movies or kiosks. IFE combines movies, video, music, games, possibly TV. Airlines have directly contacted EDIG. Excitement because airline industry in need of revenue and motion picture industry wants revenue and protected content. IFE can showcase multi-codec (MPEG 4, DIVX, MSFT, others) and multiple content - this is where Micro-Os will finally shine, unlike music, where only WMA and MP3 used. EDIG working to ensure content safe and secure; ecoding of content and infrastructure to support it also potential revenue producers. IFE product to be introduced in conference in Europe April 9
Announcement that the Mac - compatability in B and O Beosound 2 was developed by EDIG and we received additional NRE $ for this. Mac-compat. will be a firmware upgrade for O-1000 from EDIG website lter this year.
Major OEM development has been in works for many months involving our new WIRELESS platform with Micro OS 3, which will be announced in the near future.
Digitalway - will market the O-1000 worldwide, both with their own brandname and to their OEM's, with different feature sets. We will receive licensing fees and royalties for each unit sold. Even though there are numerous MP3 players, only 1 is really successful (IPOD). With O-1000 state of the art features, many OEM's feel it can compete with IPOD. Bundling with PC manufacturers still being discussed, only if payment terms acceptable - EDIG cannot finance bundling orders. If not us, one of the OEM's could do this.
Silhouette battery problem not yet fixed.
Portalplayer will bring qualified customers to EDIG to utilize portalplayer chipset and our micro-os resulting in NRE dollars and royalties or revenue sharing in chipset.
2002 disappointing - had to pay vendors/ atty fees with stock due to poor revenue ; last quarter improved - $ 550-600,000 revenue. Burn rate lowered from $ 500,000 / month (June,2002) to < 250,000 / month now. 2003 should be much improved. Management does not want any more dilution either - they are doing eveything possible to make 2003 a good year . More info. will come at Feb. webcast with 10 Q
(overall, a very good webcast and a lot to look forward to...slowly but surely EDIG is growing)
When governments fear the people there is liberty. When the people fear the government there is tyranny.
-Thomas Jefferson
AI
