>>>PT, clearly there is SOME PRICE at which an OEM will go with third-party software rather than write their own<<<
Are there other reasons? Patents, for example? Convenience? Profit-sharing? I'd imagine there are other reasons as well.
>>>No, I don't know about how EDIG might negotiate it's licensing fees.<<<
I agree, you don't. But I understand how your professional experience can give you an impression.
>>>But I know this: the $10/unit figure that was tossed around here a few months ago will NOT fly. But you need that number to arrive at a valuation that will support the market cap.<<<
Just wanna remind you that this is your math only, Jon. Have you asked Falk or Putnam how they arrive at the market cap? Perhaps their math and scale of realization is different than yours.
>>>I have contended that the licensing fee would have to be $1/unit or less in order for major manufacturers to go
with EDIG.<<<
Again, what of competition, time to market, market share posture and the new pest, tech obsolesence? Reasons which could keep EDIG locked longer into an OEM contract and, yes, perhaps taking in some royalties along the way.
The company says OEM contracts are attainable and I'm not aware of any lie the company has presented to not believe its spokespeople. It's surely proved solid business parternships, appears honorable and I have no reason to doubt EDIG. Rather than criticize EDIG perhaps you should be complimenting 'em for their reengineering efforts.
>>>As you may recall, this is the point on which I advanced my initial argument regarding licensing fees. You and others were defending the unrealistic $10/unit licensing fee that had been mentioned in some press release by the company.
I vividly recall that dialogue. However, if you vividly recall the matter you'll remember I was not involved in that debate. It was you and a few others arguing it. But as I saw remember it, it was based on your math against the company's math. If I had any involvement with this debate, it was only to suggest that you personally contact the company to solve your concern. This remains a valid thing to do, especially since you're frequently posting with criticism.
>>>I believe that that a $10/unit licensing fee is only realistic under the scenario of small-quantity production and evaluation units. In fact, I have suggested that perhaps such a fee is the only revenue that EDIG will receive in relation to various evaluation and reference design deals they have done.<<<
Quite a reach on your part, wouldn't you say?
>>>Of course, I don't know this, as EDIG has never given any details about these details.<<<
Funny how high-tech corporations are with new technology, isn't it? Should EDIG be afforded the dignity of any corporate secrecy with regard to product development?
>>>But I think it plausible that they would accept a token payment of a $10/unit licensing fee in lieu of up-front fees because they are hoping that it will lead to further business.<<<
I always thought one good deal after another would bring forth new business.
>>>PT, what licensing fee do you feel would be acceptable to OEMs building products in large quantities? And how would you then adjust your revenue projections for EDIG, which had been based on the unrealistic $10 figure?<<<
I asked earlier about a revenues adjustment scale based on production and products marketed and sold. EDIG's compensation could be priced into performance. And, yes, some business deals are good for the publicity of creating new, perhaps better, business deals. I'd imagine there'd be steppingstones to do this, given EDIG's in a sector that's relatively new in lots of ways. Which is one reason why your one-dollar figure is up in the air, ballooned only by you. Frankly, to answer your question, I don't know the answer as I'm not privy to how EDIG negotiates its OEM contracts; how product secrecy becomes a factor; and what exactly is the intention among all parties of the potentially long-range partnerships EDIG has fostered and continues to develop.
Good question though. And indeed an excellent reason for you to contact the company? |
