Re: Prospects Going Forward
in response to
by
posted on
Oct 03, 2008 08:08AM
We do not yet have the numbers from this first infringement settlement just announced last week.
However, at the shareholders meeting in mid September, management stated they are expecting settlements in the hundreds of millions of dollars.
It is not yet clear if that is for all infringers or on a per settlement basis. I would guess somewhere in between.
There are currently 8 companies that have been served by DM and in litigation. The ANNUAL retail market for the first 10 infringers DM is planning on going after is over $20 Billion.
It would not be inconcievable to expect EDIG to begin generating substantial revenues going forward as more settlements are announced.
Many investors on these boards have estimated EDIG's breakeven point to be in the neighborhood of about $10 million annually...but that is based on a business model of selling product which includes overhead for manufacturing etc.
A pure cash flow from settlments would be dollars to the bottom line as opposed to gross revenues...which is important to note.