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

To: Walter Morton who wrote (7378)	8/20/1999 7:49:00 PM
From: Walter Morton	Read Replies (1) \| Respond to of 18366

"The Company recently announced initial shipments against approximately $3 million of production orders from Lanier Worldwide, Inc. ("Lanier") resulting from a January 1997 development and supply agreement (the "Lanier Agreement"). These initial orders represent the first five months of orders for digital recording products targeted for the medical market. These products are intended to be sold worldwide by Lanier's sales force. The contract provides for rolling six month forecasts of requirements and three month rolling orders for future products." So, does that mean that if the agreement is extended into 2000 for an entire year, EDIG should expect to receive $7.2 million from the Lanier project?

To: Walter Morton who wrote (7378)	8/23/1999 5:32:00 AM
From: Walter Morton	Read Replies (1) \| Respond to of 18366

Based on that what should we expect by the end of the fiscal year (March 31, 2000)? Revenue Products $7,200,000 Services 250,000 7,450,000 Cost Products $5,040,000 Services 160,000 <5,200,000> Gross Profit 2,250,000 Operating Expense S & A $ 670,000 R & D 860,000 <1,530,000> Operating Profit 720,000 Other Expenses <195,000> Profit Before Taxes 525,000 Taxes <178,500> Net Income 346,500 Outstanding Shares 119,000,000 Earnings Per Share $ .0029 Price/Earnings Ratio 25 Stock Price $ .07 So, after the numbers are out do you think EDIG can get the market to continue to think in terms of the future (the long term)get the price to go up high enough to get a P/E of 3000... OK... 2000? With those earnings and a P/E ratio of 2000 our stock would be worth over $5 per share. Will the market continue to believe that EDIG is worth 2000 times its earnings? I hope so. I also hope the outstanding shares don't get much hire before the end of this fiscal year.