Replies to post #60091 on e.Digital Corporation (fka EDIG)

[owd3]

Well the exact part I don't understand is this......

We were discussing if Alaska was obligated to purchase any minimum number of units and a long posted their conversation with a VP of EDIG and reports him saying:

"Posted by: Duke of Prunes
In reply to: Tinroad who wrote msg# 60017 Date:2/11/2004 9:32:06 AM
Post #of 60079


Tinroad: I was speaking with Robert recently...
and he indicated that e.Digital's revenue guidance is based upon their interpretation of Alaska's interest going forward. Needless to say they (EDIG) are quite optimistic as well as myself.
In my questioning the wording of the press release,though, he indicated that there is no commitment on the part of APS or Alaska Airlines. Therefore, if the orders ceased to come in e.Digital would lower their guidance accordingly.

DoP"

Then you post a quote from the marketing guy about them making a "full commitment to the product", given the context of the previous posts, I take that as you holding that quote out as some sort of proof that there is a minimum unit commitment.

All of the above cannot be true. Either there is a minimum unit commitment that goes with the "up to" order of these units or there isn't. So one of 3 things could be happening here:

1. The VP of EDIG is mistaken or flat out lying when he told DoP there was " no commitment on the part of APS or Alaska Airlines." Seems unlikely since he would be in a position to know one way or the other and I see no advantage to lying about this.

2. DoP is either mistakenly or deliberately misrepresenting what RP told him. This is possible; I don't know DoP and can make no judgment on whether he would do something like that. But I don't see what benefit a "long" would get from making up a conversation like that.

3. You were wrong when you interpreted the marketing guys as saying they are making a "full commitment to the product" to mean there actually is some level of guaranteed minimum order associated with this deal.

So I really look forward to you enhancing my understanding on the subject!! Are you suggesting that there is a minimum order? Or are you just hoping they actually do order 1000 more NEXT YEAR?

Are you suggesting RP has it all wrong when he states " that there is no commitment"? Or are you suggesting DoP has it wrong?