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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology
EDIG 0.00010000.0%Mar 20 5:00 PM EST

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To: bob who wrote (7384)8/20/1999 9:31:00 PM
From: JimC1997  Read Replies (1) of 18366
 
Bob,

When I spoke to Robert Putnam recently I asked about the revenue reported in the 10-Q. He said that there was no significant revenue from the Lanier shipments in the quarter and that subsequent quarters would reflect the real picture.

Regarding the margins on the product, I have seen numbers as high as 40% quoted for the Lanier product. That would not be out of line for a manufacturing gross profit on a device of this type. My guess is that the wholesale sales price is $400 to $500, so the $3 million initial order would be for 6,000 to 7,500 units. I suspect that subsequent orders will be larger.

As I understand the product, the dictation device works in conjunction with a full transcription system sold by Lanier. The doctor transfers an audio file by infrared link to a desktop PC, which then sends the file to a central transcription area. So to sell the handheld unit requires that the hospital have purchased the central transcription concept. Originally I believed that the portable device had VTT capability, but I was advised that they do not. They are merely an audio recording device, although with very high fidelity.

However, the upcoming Intel prototype reportedly does have this VTT ability.

Jim
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