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Cassandra

06/09/03 2:21 PM

#37694 RE: newelong #37690

NEWe.LONG: You are assuming that the order is all in one chunk. That may be the case, but it may not be. The F-T order was supposedly spread over 4 months (at least last year when Collier was describing it).

I'm also curious to see how the payment arrangement will work. Previously it sounded like F-T and Softeq were going to pay the manufacturer directly. If that were the case, how would e.Digital book the full amount of the revenue? It would seem to be that the money would have to flow through e.Digital to be booked as revenue.

Lastly, it isn't gross revenue that matters, its gross profit. If the products cost more than the revenue, which has been the case over the past 5 quarters, then it just puts e.Digital deeper in the hole. Hopefully, the contracts with Softeq and F-T will produce at least some gross profit.