Company guidance was very encouraging regarding this and the next quarter, but being a part of what CES 2005 represents is better than I had expected.

While I still expect the good news to break that I referenced, I am now looking beyond that based on company guidance.

``At the upcoming Consumer Electronics Show (January 6 – 9, 2005), the next generation of our video/audio technology platform is scheduled to be unveiled in private meetings by e.Digital and by a large unannounced Asian customer. Both companies are scheduled to hold meetings with certain current and prospective customers. We expect significant business from this latest version of our platform will be announced within the next two quarters.``

In this market climate, with improving revenues and the announcement of significant contracts, the PPS has but one way to go from here.