I`ll throw in my 2 cents here.... First, six new positions dedicated (for the most part) to IFE translates into at least $600,000/year. It`s not just salaries, but associated overhead (e.g., employee medical coverage, plus workspace, equipment, and administration to support those people, not to mention the cost of 50% travel for that one position). A 100% overhead rate is not uncommon now days (at my last employer, O/H hit a 200% rate primarily due to being located in high-priced Santa Barbara). So with an average salary of $50K and a 100% O/H rate, you`re looking at $100k/year/person. So IMO closer to $600K.

That being said, IMO the number of digEs needing to be sold to offset that cost is more like 600. We have a pretty good handle on this, as we`ve figured that EDIG is charging Wencor around $500-600 each for the portables. We also saw where Wencor was selling them for around $2,000 each to their customers. Assuming they cost Wencor $600, and it costs Wencor some $400 each to process them through to their customers (just keeping the numbers easy to work with here), that leaves $1,000 per unit as ``profit``.

600 X $1K = $600K. All just SWAGs here, but makes the point. As with the acquisition of APS, the addition of internal resources to support digE sales/support is worth every penney due to the profits reaped.

This brings up another point that seems to be often overlooked. We get excited about the thought that EDIG is making something like 25-35% profit on each digE. Wencor, it appears, is making on the order of 100-150% profit on these things. Think they might be a little compelled to push this business?!

I`ve considered this since we once saw those proposed prices for portable and installed digEs (I forget the source but believe it was via Wencor/APS....alittle help here?). As I recall, the prices were something like $2,100 for portables and $3,200 for installed/``embedded``. This thought, and that of the profits Wencor would enjoy, has caused some of my anxiousness for deals, big deals, to be made. Wencor has one heck of an incentive. It`s called money; lots and lots of money. Seems they`d be moving full speed ahead (and just may have been). We may know in a couple of weeks.

JMHOs, and I KNOW nuttin`!

SGE