For those here and on the other boards who say shareholders should give Falk a break..I say read this one more time...Falk is either a liar or an embecile of the highest order..Either way, shareholders should not let him continue to be the highest paid office boy on the west coast...
Posted by: FGATOR
In reply to: None Date:12/18/2003 9:48:18 PM
Post #of 72115
Webcast Script: Current Business and New Business w/correct $$
This is Fred's speech except for the S3 discussion and Q&A.
Now I would like to update you on current business and discuss new business developments:
As we mentioned at the annual meetings through one of our Asian manufacturing partners, production on the Eclipse by Fujitsu-ten (EF10) products have begun. Since our meeting, EF10 successfully showcased their branded product based on our MicroOS powered automotive infotainment platform, to their distribution organization.
Because of the enthusiastic response EF10 is seeking to pre-sell the entire opening order as well as place follow on orders. We expect announcements providing further details regarding deliveries, product launch, and follow on orders in 2004…early 2004
The next business developments have occurred since our meeting and are all agreements in principal pending final approval. At this time we are confident that all of these agreements will be executed and we would like to share with you today some early details of these important business building developments
The first of our new business developments, involves a major consumer brand combining our Micros powered personal audio and personal video platform utilizing a derivative of our O1K form factor. The expected consumer release date is late spring 2004 at which time the OEM and specifications of the device are scheduled to be revealed
Another agreement calls for an OEM branded consumer version of our personal video platform featuring a 7” LCD screen. This new video product is expected to reach consumers in early Fall 2004 through a major OEM’s retail and e-tail sites.
The branding OEM and device specification are scheduled to be revealed upon the consumer launch of the product.
We are pleased to announce today that we have reached a licensing agreement in principal with the world’s largest OEM supplier of flashed based MP3 players.
This Asian OEM supplies products to many of the worlds leading consumer brands. Under the agreement this Asian OEM will mfg consumer branded products based on our MicroOS enabled personal audio platform for their customers. This agreement is similar in scope to the licensing agreement we announced on 9/16/03 with another major Asian based OEM although it is more encompassing by calling for the incorporation of eDigital’s MicroOS based technology with 1.8” hard disk drive and Cornice storage elements.
The Cornice storage element is a patent pending high capacity, low cost durable storage solution sizeable enough to hold a significant amount of audio visual content while remaining small enough to fit inside a pocket size device. The Cornice SE delivers the speed and capacity of small disk drives, the low battery usage of solid state storage media such as flash and extreme durability all at the lowest cost in the industry
We have also reached a separate agreement in principal with an existing OEM partner on a cornice based version of our personal audio platform. Their eDigital powered branded product is scheduled to be unveiled at the upcoming CES .
We expect further announcements regarding both of these pending agreements, relationships and products in early January.
We have been working with Cornice for several months on these and further pending business opportunities. As I stated at the annual meeting the lion’s share of the development work for our MicroOS based technology platforms is complete and each new project undertaken now requires fewer development hours thereby reducing costs and speeding OEM branded products to market resulting in expected increasing revenues and further business.
Revenue and royalty potential on devices produced under each current agreement as well as under each of the pending agreements we have discussed today is expected to range from several hundred thousand to several million dollars annually based on the degrees of consumer acceptance of these eDigital powered OEM branded products.
As we stated in our meeting earlier this month, in most cases it will be 3 – 6 months after OEM branded devices are launched to consumers until we can begin releasing the cumulative dollar amounts of the revenues and/or royalties being realized as well as forecasts expected cumulative revenues based on the ongoing performance of the products.
The 2004 CES will be held 1/8 – 1/11 in LV because we have a full schedule of meetings with current and potential OEM customers and partners we will not be hosting our own booth. We are please to report that branded, derivative products from some of our proprietary technology platforms are scheduled to be displayed in the TI booth as well as in other booths at the show.
We are working with OEM customers and partners on joint PR’s scheduled to be release in early Jan to coincide w/CES. We are also scheduling press and media opportunities for some of these new business developments highlighting our MicroOS powered technology platforms.
We are also pleased to report that since the SHM we have made more progress on a proposed licensing agreement involving our core MicroOS technology as well as with 2 major OEM’s seeking to converge elements of 2 or more of our technology platforms into differentiated branded products.
We also expect further IFE related agreements to be finalized during the next 2 months. Beyond these we are working on other business opportunities each in varying stages of development. We look forward to providing further details in upcoming corporate announcements regarding all of our current and pending business
During the annual meeting I emphasized that we are only pursuing new business with home run potential as well as a path for future product generations and further devices based on technology platforms. All of the developments we have discussed today meet these criteria. We expect most if not all of the revenue for the deliver of the EF10 products as well as the first royalties expected from the Asian OEM under the 9/16/03 licensing agreement will be accounted for next quarter. Accordingly we anticipate our revenue for this quarter ending 12/31/03 will be approx. 700K. We expect revenue next quarter in the 1.5 – 2.0 million dollar range based upon the delivery of the EF10 units, first royalties from the Asian OEM under their customers branded jukebox and further income from our personal video and personal audio platform.
We will continue to provide further business and revenue guidance in accordance with the info we receive from our OEM customers and partners. We’ve made good progress in our business and technology in 2003 and we are committed to making 2004 the best year ever for eDigital and for you our shareholders. We wish you and your loved ones all the best this holiday season and we wish all of us a prosperous 2004.
