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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 (3468)	5/1/1999 5:46:00 AM
From: Savant	Read Replies (1) \| Respond to of 18366

Walter, a reference design is a drawing of sorts, usually a schematic drawing, and nowadays done on a computer. It will allow any interested parties the ability to rapidly incorporate the design into a product that they wish to build. They can add to it, tweak it, subtract from it, to a point, and send the end design to their manufacturing facility of choice.(In simple terms, tells someone how to make one). The turnaround time would be critical if the standards committee changed some of the standards at the last minute, or late in the year. It sounds like EDIG's reference design would expedite the changes necessary. Which brings us to your next question about the leveraging. Leveraging in this case probably means they wish to have the greatest possible number of these gizmos made in time for the Christmas season. To do that in only one factory, Eltech for instance, would probably be impossible, and quite expensive if possible. Not to mention the risk of all that inventory, we've been there before with NCII. Additionally, it would appear there are many OEMs that want to have a presence in the market...NOW...not next year, not two years from now. So to get the MicroOS into as many gizmos as possible, eliminate some of the risk of manufacturing all of them yourself and hoping you can sell them; you license the OS & expertise to as many as are interested, let them build them and take the marketing risk. Meanwhile, back at the ranch, you collect license fees, royalties, and establish a very large market share which might last for a long, long time. (We hope) Or at least until the patents run out, and we have retired very comfortably. ...Anyone else feel free to correct this or elaborate. Best, Savant