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Message: Facts

Facts

posted on Apr 17, 2005 11:43AM
I have been reading e.Digital (Norris Communications) discussion boards for years, rarely posting. I have owned shares in e.Digital (Norris) since 1997. After all the ups and downs, I`m still here. There is some useful information on these boards, intermixed with plenty of speculation, and a good amount of drivel. I am cautiously optimistic about IFE. I am concerned that we have no publicly-available information about e.Digital`s continuing role with Wencor/APS. It is encouraging that Wencor presumably allowed e.Digital to issue a press release about the DigEplayer award. In that PR, dated March 10, Anandpura also stated “We look forward to continuing our support of APS/Wencor’s digEplayer market opportunities by providing ongoing product and technology enhancements, and manufacturing services through our Asian partners.” This suggests that e.Digital is involved with the changes to the DigEplayer and the development of the DigEsystem. However, the announcement about Linux confuses the issue. Can e.Digital work with Linux? Probably so. Did they suggest it themselves to deal with all of the future applications? Maybe. Is MicroOS still an integral part of these products? Don`t know. Does the important patent-pending encryption scheme belong to e.Digital, or not? Could a combination of Ittiam and DivX support all of the new developments without e.Digital`s support and manufacturing partners? Maybe. It doesn`t seem that an entirely new entity could get involved as quickly as things have moved along with these Wencor/APS projects. But, Wencor is a different entity than APS, and may have recognized the role of companies like Ittiam and DivX and may have decided to move in another direction.

e.Digital has been a major disappointment for these many years. It always seems to have those big revenues just around the corner (the next quarter, next year, etc.). It has been creative to stay financially alive and to get involved with some interesting projects. The IFE products are a tremendous opportunity. I really hope that we will get verifiable information in the near future that e.Digital continues in its role with the DigEplayer and DigEsystem. It would not be at all surprising if Wencor wants to limit the recognition of e.Digital (look how hard Apple tried to keep PortalPlayer`s role out of the limelight). It is their product that they want to sell as their own to their customers. We may have to wait to see the actual or projected revenues and more generic announcements of contracts to know for sure. Ideally, Wencor will allow more disclosure by e.Digital about its role.

In sum, I am not that confident that e.Digital is an integral part of the Wencor/APS future. I hope that it is and I am betting so by continuing to hold many shares. It has been a long and winding road. Success would be sweet. I will now go back to being a reader and not a poster. Good luck to all.

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