Four key EDIG Primary Projects
Conference Call
Feb 26, 2003
Car stereo with Eclipse by Fijutsu 10, which is hard drive, based MP3 and WMA music player designed to interface with their current and future car stereo systems. We have recently signed a manufacturing agreement with a new Asia based OEM to do the manufacturing of the product which will be totally funded by Eclipse by Fijutsu 10. Meaning that Edigital will not have to front the cost to manufacture the initial 4000 units that they've ordered. The units are expected to ship to eclipse this spring and will provide Edigital with revenues of around 1 million dollars. Eclipse is also paying us non-reoccurring engineering fees for the development work.
Based on their successful showing at CES they are also looking beyond the after market to factory-installed applications at a more rapid pace than previously scheduled.
Another exciting project that we are working on is the portable in-flight entertainment system. Or as its known in the industry, IFE, that we’re developing for a major US airline through OEM customer APS Inc. This portable device incorporates both movies and music and is being designed to support Divix formatted motion pictures, and MP-3 formatted music files. There are also plans to incorporate audio books
and video games into this system.
This IFE system is being developed in partnership with our Odyssey 1000 partner Digital way. Digital way is providing the industrial and mechanical design as they did with our odyssey 1000 and will also provide manufacturing services for the IFE system. Edigital is providing all of the hardware and software engineering.
As with the eclipse project we do not have to front the manufacturing costs. The initial order is valued at close to 1 million dollars and that number is expected to quickly increase after the IFE system is launched and put into service
We are in negotiations with additional airlines and other travel industry companies and we are pursuing those opportunities with APS to expand our reach into this field.
This product incorporates the best of what we've been working on for 3 1/2 years combining audio and video, multiple codec’s, and friendly functionality in one compact portable device.
Our Odyssey 1000 personal digital jukebox product has been very well received by consumers, and our initial inventory completely sold out through our online store in just two weeks.
We continue taking orders for the Odyssey 1000 and we are working with Digital Way to expedite the next shipment. Our goal is to sell Edigital branded premium Odyssey 1000 units mainly through etail channels. Based on increasing modest monthly sales of our branded Odyssey 1000 and expected OEM branding, and sales of the Odyssey 1000 over the next 2 to 3 months we expect this product to begin to cover most of our operating expenses and significantly improve our operating margins.
We are working to provide further enhancements to the Odyssey 1000 some of which were suggested by our customers and reviewers.
Already in development is onboard ID3 tag support, multiple language support on the LCD, and other enhanced features.
Continued improvement will maximize the life cycle of the
Odyssey 1000 and differentiate our branded Odyssey 1000 from other models on the market.
Our latest OEM news is an agreement we announced last week with SoftTech Development Corporation to develop a wireless digital audio design for Hewlet Packard.
The current focus of our partnership is developing a custom
MP-3 player headset incorporating our patented MicroOs 3.0, and a unique wireless infrared interface.
Ultimately another major OEM will be the end customer of this particular product.
Shipments are expected in to begin in early summer and the initial shipments are worth over one million dollars to Edigital.
We look forward to releasing further details as permitted by HP and the other major OEM involved in the project.
