Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?

To: Savant who wrote (6190)	6/29/1999 10:31:00 PM
From: bob	Read Replies (5) \| Respond to of 18366

MUST READ from Webnoize today. San Diego-based hardware and software company e.Digital Corporation has received a $3 million equity investment from JNC Opportunity Fund, Ltd., the first institutional investor to provide backing for the company. Facilitated by Jesup & Lamont Securities, the financing will enable e.Digital to expand its reach into the handheld device markets for music, voice and data. The company developed the MicroOS patented file management system, which e.Digital considers ideal for applications ranging from CD-quality stereo music to dictation and voice memo products. A special version of the file management system, known as MicroOS Audio, is being incorporated into a solid-state, portable music player that e.Digital is developing with Lucent Technologies [see 4.21.99 Lucent, e.Digital Developing PAC-Compliant Portable Device]. The player will allow consumers to play music files compressed using Lucent's Enhanced Perceptual Audio Coder (EPAC), as well as other formats, but not files compressed using the currently popular MP3 audio scheme. The device will also be compatible with the portable audio device specifications announced yesterday by the Secure Digital Music Initiative (SDMI), according to Fred Falk, chief executive officer at e.Digital [see 6.28.99 SDMI Releases Portable Audio Specs]. With the SDMI specs having been released, e.Digital has also pledged to use technologies from both Texas Instruments and Liquid Audio in its player. Liquid and TI yesterday announced licensing opportunities for a programmable digital signal processor (DSP) -based blueprint designed to give consumer electronics companies a way to develop secure digital players in time for Christmas [see 6.29.99 Liquid, Texas Instruments Release Portable Device Blueprint]. The technology from Liquid and TI saves e.Digital "a lot of headaches," according to Falk, because "now there is a secure screening mechanism that we can incorporate into our design." The EPAC player will also use Celestial's Audio Library software to manage digital music on PCs, function as a personal jukebox and manage the transfer of digital music to the player. EPAC provides copyright protection by way of digital audio watermarking technology from Cognicity, Inc. At this stage in the game, e.Digital and Lucent are in discussions with several original equipment manufacturers (OEMs), looking for a company to put its brand name on the player, and then market and sell the device for the holiday season, according to Falk. The partners also plan to license their reference design to other player manufacturers that have an interest in the market, but that have not developed the technology expertise, Falk said. The JNC investment will allow e.Digital to further strengthen its ties with technology and electronics partners, according to Falk, and improve its financial results for fiscal year 2000. In fiscal 1999, e.Digital reported a decrease in revenues from the previous year, as well as a net loss of $2.6 million. During the most recent fiscal period, however, the company made "substantial progress in cleaning up our balance sheet and reducing the company's liabilities," according to Falk's statement to e.Digital shareholders. Further music industry-related plans for e.Digital call for the company and Lucent to offer OEMs a reference design for the Internet music player, based on the device the partners are developing. The design also includes a 32MB CompactFlash memory card produced by SanDisk Corporation. In addition to its portable music player, e.Digital has also developed a portable digital voice recorder and computer docking station for document management specialist Lanier Worldwide; and a similar device using speech-to-text and text-to-speech technologies for Intel. Additionally, e.Digital is a member of the IBM-sponsored VoiceTIMES alliance, an organization whose goal is to coordinate the technical requirements needed for companies to build and deploy solutions using voice technologies and handheld mobile devices. Other members include Dictaphone, IBM, Intel, Norcom Electronics, Olympus and Philips.