By: newelong
06 Aug 2001, 07:23 PM EDT Msg. 745740 of 1116060
CONVERSATION WITH RP .......
In the conversation I had with Robert Friday afternoon we covered the following topics:
"Next Generation" HDD Jukeboxes
Robert indicated that our OEM`s won`t be knocking off TREO clones, but rather producing players with many different looks and varying feature-sets. With regard to competition all I could think of to mention were the Nomad and Archos MP3 players, and he replied that although they claim to be upgradeable [to "Next Generation"], he hasn`t yet seen how this will be accomplished. I tried to get a good explanation as to why we haven`t seen any e.Digital/OEM jukeboxes yet, and he indicated that we are only now approaching the primary season for new product introductions. He further mentioned that a rollout into an unproven market represents inherent risks, particularly for our smaller OEM`s, and especially when no one really knows how well these jukeboxes will be received.
When I brought up the subject of the oft-delayed TREO, he mentioned the hiring of Jim Collier as COO, and what a welcome addition he is; we will soon be able to offer our OEM`s and licensees complete product life cycle management.
System-on-Chip
I got the impression that with regard to the digital audio players, the DSP solution is the overwhelming choice of our OEM`s and licensees. Robert did mention, however, that we are currently exploring the use of a SOC solution with a couple OEM`s, but I`m not sure if this is in connection with DAP`s, or some other application.
3G Phones
Robert mentioned that we are working on a cell phone accessory [a music plug-in, to be exact], which would obviously negate any dependency on bandwidth, and consequently, 2.5 or 3G infrastructure.
Video
Robert indicated that our involvement here is primarily in connection with the e-book platform, leaving me with the impression that video on any smaller size screen wouldn`t be too practical at this point in time.
QDX
Robert remarked that the "fit to media", while maintaining higher audio quality than MP3, is the codec`s primary feature, and its success would most likely require the endorsement of one or two of the big five record labels.
Employees
I asked Robert for the current employee count and the number of positions presently unfilled. He kinda chuckled and said "Over 40". Hey BusyBump, whasssup with that ???
After our discussion I`ve become even more convinced that we will soon see the long anticipated launch of jukeboxes, followed shortly thereafter by the Dataplay entries, and all "powered by e.Digital". I`m also inclined to believe that both of the digital audeo player platforms will be quite successful. The only question that remains in my mind is how the issues of multi-codec/DRM and transcoding will play out. Could it possibly be that the greatest competition in this soon to emerge market of "next generation" DAP`s will be that of our OEM`s amongst themselves ? Opposing fact-based views are welcome.
I`ve seen a lot of discussion regarding the Company`s financial condition, and I would like to take this opportunity to present my 2 cents worth. First of all, I can`t see where this concern about possible "dilution" is coming from. Management stated, "We believe that with the cash on hand [as of 3-31-01] and the proceeds from existing development and production contracts, we have sufficient proceeds to meet cash requirements for the next 12 months". I presume that to mean through March of 2002, and if anyone doesn`t believe that new revenue streams will start flowing before then, I`m not sure why they would be here. Furthermore, why would anyone think that on 5-14-01 Ernst & Young would stick their necks out by signing off on the Company`s audit, and not include the "going concern" clause which has been there probably forever ? Could it be that they overlooked it, or could it be that they just happened to find a drawer full of multi-million dollar contracts in various stages of completion, and all containing those dreaded NDA`s ?
Something tells me that this Company has finally reached the point whereby its bright future will soon begin to distance itself from its trying past, and the only reminder should be the $52 million in losses-carried-forward ... Sorry, Uncle Sam.
Say, MIR, sorry to interupt the remodeling, but could you give us a quick lesson on how selling patented software can be profitable ... wasn`t it you who said it`s almost like stealing ??
Hey, DABOSS, just want to say I`m glad YOU ARE still HERE ... you do have a way of painting a vision with words, and you`re one of the reasons I AM HERE ... just sad to know that others can`t see !?!
Oh, I almost forgot. I asked Robert how they were progressing on Voice Navigation, and he replied, "We`re ready to go". He quickly added, too, that some of those attending the Annual Shareholders Meeting in November would have the opportunity to give it a try !!
NEWe.LONG
