Replies to post #65998 on e.Digital Corporation (fka EDIG)

[Cassandra]

HH: Sadly, it looks like APS is e.Digital's only revenue generating customer.

Consider the status of the other current supposed revenue-generating customers:

Musical:

I think everyone (even the most ardent supporters) wrote this deal off the day the PR went out during CES (1/8/04), due to the history with Musical. The PR stated that e.Digital and Musical were going to "showcase" first generation music music players using the Cornice disk at that same CES. It didn't happen and seems to be a blatant lie.

TGE:

The PR announcing an agreement with TGE merely stated that e.Digital would "develop several audio products" for international original equipment and design manufacturing, branding, and distribution by TGE Group and its global customer base. If neither TGE nor its customers adopts a player, there will be no revenue, which seems to be the case.

Fusion:

e.Digital made no claim whatsoever that they have any kind of a revenue-generating agreement with Fusion in the PR. It seems that announce was simply an example of their stated strategy to align their name with others. Therefore, no revenue expected.

"Core" Licensing with multi-billion dollar OEM:

They have been talking about this for at least a year. Early on they stated that they had an "agreement in principle" pending legal approval, but later have been saying that it is at "the executive level" for decision-making. Never in the history of e.Digital/Norris Communications has any entity ever licensed MicroOS, legally known as the "Norris Flash File System" (NFFS) as a stand-alone firmward technology. This patent (#5839108), which addresses flash memory only, dates back to 1997 and e.Digital has not submitted any new patent updates. The fact is that there is no demand for licensing this 7.5 year-old technology.

Eclipse by Fujitsu Ten:

Although Fred Falk announced - with great fanfare - at the ASM on 12/5/03 that the Eclipse HD 1213 was in "full production," it later was proven to be yet another blatant falsehood. IMO, e.Digital will receive a nominal amount if anything at all from either a settlement or arbitration award.

Gateway OEM:

e.Digital stated that they would release revenue figures from the Gateway OEM just after QE 3/31/04. They never followed through. Since then, they've made claims about other products to be released from this mystery OEM, but none have materialized.

In the end analysis, it looks like the only realistic revenue-producing agreement is with APS.