Lots of good posts, lots to think (worry?) about.... Here are some of my thoughts (assuming anyone`s interested, and bear with me, it`s a long one and I may bounce around a bit cuz that`s how this news is jumbling my thought process...):

I too have heard exactly what Moxa described as the situation when Wencor bought APS. They thought they were getting it all, and I can easily envision how this could have come about: Wencor goes to Boyer (whose head/ego had probably grown to gigantic proportions) and Boyer tells them the digE is his idea, his trademark. Wencor may have talked to EDIG, but may have (probably?) gotten lost in the techno-babble (easily, like most of us reading a Doni post - no offense Doni, it`s just way over most of our heads, and makes the point here). Wencor gets anxious/excited about the possibilities, and jumps on APS. Then reality sets in, and fumbling begins (open positions never filled, etc.).

The big flaw in this scenario is that, assuming Wencor had even semi-competent accountants capable of effective due diligence, a look at the books should have revealed the reality. APS was buying from EDIG. Now, depending on how the orders and accounts/ledgers were structured, it may not have been evident to the Wencor accountants that APS was paying for manufacturing (by a third/fourth party), PLUS manufacturing oversight and tech royalties to EDIG, ITTIAM and perhaps DivX. Once these aspects were discovered, and they realized they hadn`t bought the whole enchilada, I could see where they were pissed. However, they did know what APS was paying EDIG for digEs (all costs included), and must have thought that the cost was acceptable. But then again, if they actually believed that Boyer/APS had it all, they may have considered that, once APS (and its supposed all-encompassing tech) was acquired, they could shop around for a cheaper manufacturer. But I can counter that argument with the apparent fact that Wencor is paying about $635 each for digEs, and then (per info we saw a while back) charging their customers some $2K each. How much profit is enough?!

But now step back into ``gigantic egos land``. Based on his history, the owner of Wencor really likes to own, and fully control, aspects of his operations. Control freak. But he`s got no control over EDIG and the guts of his new product. This of course assumes there was no (longer) an exclusivity clause in a contract between APS and EDIG - and I currently seriously doubt that there ever was, because I can`t find where EDIG announced any partnering/teaming agreement with APS, while they had so announced on multiple occasions in the past, e.g., with DivX. I current suspect that APS, when they needed digEs, simply sent a PO to EDIG with no special long term clauses (after all, just how sophisticated do you really think Boyer is? Ya think he has exclusivity agreements with his coffee suppliers? Ignorant to tech business practices, as probably was is Intel side-kick who`s focused on zeros and ones, not protective contract language).

So Wencor man wants to ``own it all``. Here I`ll say that I wouldn`t be a bit surprised if Wencor was making a bid at buying a controlling interest in EDIG in Dec/Jan at $.33. Then perhaps Wencor`s allocated funds for this endeavor expired and EDIG`s PPS drops like a rock. Burned again!

How to undo this mess (in Wencorman`s eyes) and get that covetted ``absolute control``? IMS! A competing viable product being eyed by the likes of AA and Virgin Atlantic. And I believe it is privately held (try and find a stock symbol for it!). Ahhh, control (insert Homer Simpson slobbering).

Continued.....

SGE