e.Digital Announces Second Quarter Results

e.Digital Announces Second Quarter Results 
SAN DIEGO, CA -- (Marketwire) -- 11/13/12 --   e.Digital Corporation
(OTCQB: EDIG), a long standing source of innovation and
future-defining patented technologies, today reported financial
results for its second quarter of fiscal 2013, ended September 30,
2012. 
The Company reported a net loss of $376,005 or $(0.00) per share, for
the second quarter of fiscal 2013 compared to a net income of
$163,430 or $0.00 per share for the prior year's second quarter. For
the second quarter of fiscal 2013 revenues totaled $124,949 compared
to $1,042,491 for the second quarter of the prior year. The most
recent quarter included $2,000 of patent license revenues compared to
$904,338 for the second quarter of the prior year. Gross profit for
the second quarter was $24,801 or 20% of revenues, compared to
$598,965 or 57% of revenues, for the prior year's second quarter.
Operating expenses increased to $400,806 from $334,510 for the prior
year's comparable quarter primarily due to increased patent related
costs. 
For the six months ended September 30, 2012 the Company reported a
net loss of $708,988 or $(0.00) per share on revenues of $257,495.
For the comparable six months of the prior year the Company reported
net income of $894,667 or $0.00 per share on revenues of $3,224,306.
The Company's results are impacted by the timing and amount of
license fees and there were no significant licensing revenues so far
in fiscal 2013. The reexamination of two of the Company's patents had
stifled the Company's patent enforcement activities. 
"Now that the reexamination of the Company's '774 and '737 patents
has been favorably concluded, we are aggressively pursuing
Flash-R(TM) patent monetization activities," commented Fred Falk,
President and CEO of e.Digital. "As we recently announced, we have
engaged a new law firm and have filed infringement lawsuits against
six manufacturers, including many of their distributors and
retailers." 
The Company has been granted four patents for context and
interpersonal awareness systems technologies that are the foundation
of the Nunchi(TM) patent portfolio. The Company also received Issue
Notifications from the United States Patent and Trademark Office for
two more Nunchi related patents. "With granted patent rights in hand,
we expect increased awareness and interest in our intellectual
property assets by companies that are developing context awareness
based technologies, as well as hardware manufacturers and wireless
communications providers," continued Falk. "We have several patent
continuations in progress which we expect will continue to add value
to our growing portfolio." 
About e.Digital Corporation: For more than 20 years, e.Digital's
ideas and inventions have impacted the evolution of consumer
products. Today, e.Digital innovations, including its Flash-R(TM)
portfolio of flash memory-related patents, are essential to many
portable consumer electronic products. The Company pioneered
dedicated portable in-flight entertainment systems and more than 30
airlines have made e.Digital powered products their in-flight
entertainment choice. For more information about e.Digital, please
visit: www.edigital.com. 
Safe Harbor statement under the Private Securities Litigation Reform
of 1995: All statements made in this document, other than statements
of historical fact, are forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act. You should not place
undue reliance on these statements. We base these statements on
particular assumptions that we have made in light of our industry
experience, the stage of product and market development, expected
future developments and other factors that we believe are appropriate
under the circumstances. These forward-looking statements are based
on the then-current expectations, beliefs, assumptions, estimates and
forecasts about the businesses of the Company and the industries and
markets in which the Company operates. Actual outcomes and results
may differ materially from what is expressed or implied by the
forward-looking statements. More information about potential factors
that could affect the Company can be found in its most recent Form
10-K, Form 10-Q and other reports and statements filed with the
Securities and Exchange Commission ("SEC"). e.Digital Corporation
disclaims any intent or obligation to update these or any
forward-looking statements, except as otherwise specifically stated
by it.  


 
                                                                            
                    e.Digital Corporation and subsidiary                    
                    Condensed Consolidated Balance Sheet                    
                   (000's omitted except per share amount)                  
                                 (unaudited)                                
                                                                            
                                                September 30,    March 31,  
                                                     2012           2012    
                                                      $              $      
ASSETS                                                                      
  Current                                                                   
    Cash                                                2,546          3,125
    Accounts receivable                                   122            168
    Inventory                                              42             98
    Deposits and prepaid expenses                          18             40
                                                -------------  -------------
  Total current assets                                  2,728          3,431
    Inventory, long term                                  106             89
    Property and equipment, net                            16             18
                                                -------------  -------------
  Total assets                                          2,850          3,538
                                                =============  =============
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
  Current                                                                   
    Accounts payable                                      132            100
    Accrued and other                                     189            211
                                                -------------  -------------
  Total current liabilities                               321            311
  Stockholders' equity                                  2,529          3,227
                                                -------------  -------------
  Total liabilities and stockholders' equity            2,850          3,538
                                                =============  =============
                                                                            
                                                                            
                                                                            
                    e.Digital Corporation and subsidiary                    
               Condensed Consolidated Statement of Operations               
                  (000's omitted except per share amount)                   
                                (unaudited)                                 
                                                                            
                                 For the three months  For the three months 
                                         ended                 ended        
                                     September 30,         September 30,    
                                    2012       2011       2012       2011   
                                     $          $          $          $     
Revenues                               125      1,042        257      3,224 
Cost of revenues                       100        444        196      1,456 
                                 ---------  ---------  ---------  --------- 
  Gross profit                          25        598         61      1,768 
Operating expenses:                                                         
  Selling and administrative           232        231        455        480 
  Research and related                                                      
   expenditures                        169        103        315        293 
                                 ---------  ---------  ---------  --------- 
Total operating expenses               401        334        770        773 
                                 ---------  ---------  ---------  --------- 
Operating income (loss) before                                              
 income taxes                         (376)       264       (709)       995 
Provision for income taxes               -       (101)         -       (101)
                                 ---------  ---------  ---------  --------- 
Income (loss)                         (376)       163       (709)       894 
Dividends on preferred stock             -          -          -          - 
                                 ---------  ---------  ---------  --------- 
Income (loss) attributed to                                                 
 common stockholders                  (376)       163       (709)       894 
                                 =========  =========  =========  ========= 
Income (loss) per common share -                                            
 basic and diluted                   (0.00)      0.00      (0.00)      0.00 
                                 =========  =========  =========  ========= 
                                                                            
Weighted average common shares                                              
 outstanding                                                                
  Basic and diluted                293,003    293,003    293,003    293,003 
                                 ---------  ---------  ---------  --------- 

  
CONTACT: 
e.Digital Corporation: 
Investor Relations
(858) 304-3016 ext. 205
ir@edigital.com 
 
 
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