Doug

While I don't have your tech expertise and experience, on a common sense basis I will defend my earlier point that after investing $50+ million in R&D during the past three fiscal years the company's in-progress R&D initiatives should have some value.

As you correctly point out, is is possible that the $50 million was completely squandered and produced absolutely zero "good/salable technology". Ditech's market cap in late 2008 and the first half of 2009 supports that conclusion.

While it appears most of that money (the equivalent of over $60,000 every business day for three years) was wasted, it would seem likely at least a few of the R&D initiatives produced incremental improvements in software, algorithms, chip sets or other features of useful value in the voice quality world. Did the $50 million invested generate $3 million in R&D value? $5 million? Perhaps $7 million? As pitiful as those numbers appear relative to the initial $50 million, they still seem far more plausible than "zero."

That ratio is one of the reasons some fresh perspective on the Board of Directors and now the leadership team (Jamie Siminoff and Mark Dillon) is a welcome change for shareholders. The previous Board of Directors seemed reluctant to admit a big "oops." The new blood in the company likely won't be.

Good luck to everyone.

Fujigrower@gmail.com