RE: Well Triad has been at it for 5 months now...bill
posted on
Mar 13, 2006 05:52AM
You may be very right about paying Triad more money due to design fees. EDIG collected R & D money as the initial product was conceived with Boyer/APS.
That`s also the way the company I work for does it. So, if the product is a flop, you still have your costs covered with little profit. If the product is a hit, we conceed some of the R & D costs for a better ongoing deal. I believe that is what EDIG has done with the APS / Wencor projects -- and is now a problem for Wencor`s management team.
If Triad can do the job for the same or less cash, they will get the deal. If not, Wencor will be forced to buy digEplayers from EDIG until they have an acceptable alternative.
In the great scheme of things, sometimes the rat race is won by default. Ceratinly, EDIG has a proven track record with the digEplayer.
Now let`s see where and when that success gets parlayed into the next G eVU. I`m still banking on real ``touch me, feel me`` products to get EDIG running....not a pile of unknown IP hope and hype. But I would love to see something -- make that anything -- on all three potential revenue fronts:
1) eVU sales -- update coming and we know it takes only a few thousand units to see black ink (a HUGE hurdle for the investment community today, this is not Y2K) If military sales are in the works in any way, the potential is large.
2) digEplayer -- we only know we had some revenue carried forward due to delayed shipments, future is murky at best. It should be noted that Wencor was the Great White Knight for EDIG until the relationship went South. IMO, direct eVU sales will be much much better for EDIG long term, but we could sure use a pile of product being shipped and billed in this Q. If so, the cash could mitigate some of the dilution. If not, expect more of those one million shares to be sold until eVU or other revs / margins reach breakeven.
3) IP infringments -- we only know EDIG is ``persuing`` which is only a notch better than ``soon`` IMO. Also IMO, the time line is not months, it can be years -- as it was with PTSC (first notices were in 2003). At this point, we do not even KNOW that TPL is on the hook yet. The key will be to have a signed, sealed, and delivered sugar daddy legal team specialized in IP cases. TPL is the obvious choice due to their recent PTSC success, but there are many other firms willing to take on the big guys IF (great BIG IF EDIG has a valid legal claim.
That`s my story and I`m stickin` to it.
John