Man, you guys go round and round again on this! Did Blakely say ``rentals``? NO! He said ``sales``. My continuing impression from all this (though I believe Frank countered me on this on my last go-round) is that EDIG would essentially sale the eVUs to the financial partner who would rent them or sale them to user customers. EDIG`s recurring revenues would be from, as Blakely said, logistics/maintenance/refresh support. [Think about this logically, beyond my pure ``taking Blakely`s words``; why would EDIG participate in the rental scheme? - how would they pay for the production of the units? Financial partner pays for production. Financial partner essentially sales or rents the units as described by Frank. So we sell to Financial partner, and they sell or rent - EDIG does not.].

4,000 units sold. $2,000 per unit was suggested (though I think that`s a tad high). OZ says that $666K/month if ``spread`` through a FY wouldn`t be enough. I say forget the ``old`` 20% margin scenario - these would be retail sales, not wholesale as was to Wencor. What did we figure a digE cost EDIG to build? $500-$600/unit. You think the eVU will be THAT much more? IMO, maybe $600-$800. Retail sales; 100%+ markup (like Wencor did, and how most retail is handled, though Wencor also doubled up by supplying content, etc. $600/unit to EDIG plus maybe $400/unit to cover everything else, and sold `em for around $2,000/unit = 100% mark-up for retail sale). So $666K/month revenue equals $333K/month profit - certainly enough to make us profitable, plus the recurring revenue as a kicker.

Now consider if $1,500 unit (more realistic IMO). That`s still $500K/month on the 4,000 units (if spread through a FY), and $250K/month profit on sales, and more than enough to cover OH.

All JMHO of a more realistic SWAG scenario. But I KNOW nuttin`!

SGE