Given the timing I`d think that a 50% partial payment would yeild about 1M in cash proceeds to EDIG with the total recorded next Q upon delivery. At a minimum 2.16 M looking forward. Based on $600 / unit manufacturing cost and margin.
The last guidance for the current Q read ``The company also reported $0.967 million in advance payments (customer deposits) at December 31, 2004.`` Employing the same logic we should record 1.934M upon delivery of product. Assuming delivery this Q. That .967M represents aproximately 3220 digeplayers. At this point we have no idea if those advanced payments represent some of the announced airlines we`ve heard about in the past few weeks or if those airlines represent new orders. If in fact they are new orders both this Q and next should see improving revenues above and beyond what I`ve just suggested.
Larry