"For simple memory interfaces many OEMs develop simple file management code, however in more complex memory management requirements the Company believes it offers a superior solution. As portable devices become more robust and provide multiple functions, the Company believes there will be expanded market opportunities for its file management system. The Company's objective is to have MicroOS become a leading file management system in a growing digital market for portable devices. e.Digital's MicroOS provides a flexible software solution for portable digital music players. The Company also has substantial experience in adapting MicroOS to leverage the strengths of various Digital Signal Processors (DSPs). DSP processors are a key electronic component employed in portable digital devices to manipulate digitized signals. The Company is also experienced in adapting compression algorithms to DSP processors. This experience and the Company's abilities position it as a leader in providing hardware and software solutions to developers of portable digital devices."
"Unlike mp3, EPAC can be downloaded with a selected song rather than in a separate technical step."
"e.Digital is serving as the DSP engineering specialist to port (configure software to operate on a new processor) EPAC software to a new class of Texas Instrument DSPs."
"The Company is also porting Lucent's EPAC compression algorithm software to the new class of Texas Instrument DSPs pursuant to a purchase order from Lucent. This effort is an example of e.Digital's digital signal processing consulting services."
"The Company's core MicroOS technology is an efficient, portable storage memory file management system. The patented software architecture takes a unique approach to file management that is robust, high-speed and efficient. This approach is suited for the high-speed portable product market because it requires minimal micro-controller support while providing broad product functionality. This architecture offers OEMs the ability to reduce new product development time and time to market, as well as produce a product featuring a reduced chip count and correspondingly lower cost and power requirements."
"Lucent and e.Digital are actively demonstrating and marketing their digitalmusic solution to participants in the digital music arena including
(a)providers of infrastructure technology, products and services,
(b)providers ofonline music services,
(c)Internet retrieval and portal companies, and
(d)online music retailers."
"Unlike less robust systems, MicroOS can support an unlimited number of files, directories, and subdirectories and is fully MS-DOS compatible. It is also easily adaptable to function with Microsoft Windows CE platforms."
"Inherent in the combined technology, is a storage algorithm providing the ability to watermark information, providing protection against piracy. The MicroOS Audio technology is easily adaptable to other compression technologies, such as mp3, AC3 and MSA4.0 and others."
"...the Company's engineers can perform development services aimed to convert designs into functional reference designs, prototypes and/or end products. The Company also is experienced in arranging for manufacturing services including factory hand-off and development of test procedures."
"The Company anticipates that it will hire at least one technical sales representative during fiscal 2000 to expand its marketing and sales activities."
"To date, the Company has not expended any significant effort to pursue the Japanese market through supporting TEKSEL but intends to do so during fiscal 2000."
"Mr. Norris is a professional inventor and is only obligated to assign inventions made at the direction of the Company or which relate to digital voice technology products. The Company has no rights to any other inventions, designs, improvements or discoveries made by Mr. Norris."
6/28/99 10-K
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