Re: Prospects Going Forward
in response to
by
posted on
Oct 03, 2008 08:27AM
Suppose settlement #1 is $5 million.
For EDIG to show a profit of $5 million I am guessing they would have to generate approximately$40-$50 million in gross revenues...assuming a 10% net, if they could even get that efficient in a difficult market. (I'm sure we could argue the details, but this is a ballpark discussion for arguments sake)
So a settlement or two makes EDIG a very different company that still has its core eVU business to further develop...and virtually no overhead to speak of...
And that's an estimate based on a couple of $5 million settlements.
What if settlements amount to much larger numbers?
Settlements are NET dollars requiring no overhead beyond DM's cut. I am assuming $5 million settlements to EDIG in the above example...or a $9 million total settlement, allowing for DM's cut.