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Message: Reasonable WAGs

Reasonable WAGs

posted on Sep 17, 2005 10:13AM

1. EDIG is in the digEsystem as the security platform similar to digEplayer. However, this is a much smaller piece of the profit pie.

2. As predicted, Wencor will control the manufacturing. Thus. cutting EDIG`s revs / GP.

3. Wencor and EDIG are in a legal ``discussion`` about who owns the idea of the digEplayer and is the design a ``work product`` paid for by APS and what degree. We KNOW it was Boyer`s idea and we know it was EDIG guts with APS skin. Who actually owns what is in question since NREs could have been paid. This would apply only to the digEplayer, not EDIG complete reference design.

4. Brent Wood wins either way. Does EDIG get less royalty dollars on the digEsystem with Wencor controling manufacturing --- including EDIG tech inside? Tough call.

5. Time for the imfamous: EDIG needs to sell something. Past fiscal 2006, we don`t know how much Wencor will contribute to EDIG`s coffers. Probably something less than today.

All IMO only.

John

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