e.Digital Reports Fiscal Year 2013 Results

e.Digital Reports Fiscal Year 2013 Results 
SAN DIEGO, CA -- (Marketwired) -- 06/27/13 --  e.Digital Corporation
(OTCQB: EDIG), a long standing source of innovation and
future-defining patented technologies, today announced results for
its fiscal year ended March 31, 2013. 
Highlights: 


 
--  Continued progress with patent licensing: Since the start of fiscal
    2013 the Company has filed a total of twenty-two complaints, settled
    with seven defendants, won a stipulated judgment against one
    defendant, and dismissed one.
--  Added new patents to portfolio of IP: The USPTO has granted the
    Company six new patents in the area of context and interpersonal
    awareness systems technologies creating the foundation of its
    Nunchi(R) patent portfolio. The Company filed two patent
    continuations and one continuation in part, which it expects will
    further strengthen the portfolio.
--  Began marketing new IP: In March, the Company retained IPmetrics
    Intellectual Property Consulting to manage the valuation and
    monetization of the Nunchi patent portfolio. IPmetrics is currently
    marketing the portfolio of patents into various technology sectors.

  
Management Commentary:
 "Fiscal year 2013 brought not only challenge,
but also progress," commented Fred Falk, president and CEO of
e.Digital. "Although the Company reported a financial loss for the
year, we were successful in getting the much-needed tools in place to
allow us to renew our intellectual property monetization efforts. We
successfully completed the reexamination by the United States Patent
and Trademark Office (USPTO), of one of our key patents, US
5,742,737. With the reexamination completed, we restarted the process
of monetizing our Flash-R(TM) patent portfolio, through a newly
retained law firm, Handal & Associates. We have begun to realize
Flash-R related licensing revenue and expect more licensing revenues
in the future as we progress through the litigation process. Our
future success will be determined to some degree by factors out of
our control, such as Markman and other court rulings. 
"We enjoyed progress in the development of new intellectual property
during the year, our Nunchi portfolio," continued Falk. "As with all
emerging technologies, it takes time for industries to embrace a new
technology's role in their market. Just as in the early days of our
Flash-R technology, we believe value increases as we develop the
portfolio over time. 
"Although new sales of our eVU(R) portable in-flight entertainment
device have been stifled by the growing trend of passengers using
their own entertainment devices, we did receive small follow on
orders from an existing airline customer. Many of the players that
we've sold over the years are still in use and we continue to provide
revenue-generating services, such as repairs and content updates, for
those devices. 
"Looking to the future, we have begun developing new intellectual
property, focusing on technologies in the areas of cloud based
privacy, security, user authentication and communications," concluded
Falk. 
Fiscal 2013 Financial Summary:
 Revenues totaled $442,000 for the
fiscal year ended March 31, 2013. Revenues for fiscal year 2013
included $11,000 in licensing fees from the Company's Flash-R(TM)
patent portfolio and $431,000 in eVU portable in flight entertainment
(IFE) sales and services. For the prior year, licensing revenue was
$4.1 million and eVU revenues were $627,000. During fiscal 2013 the
Company had no new patent license agreements, and in the prior year,
licensed eight companies including one outside of litigation. The
Company recently announced new patent licenses secured in the first
quarter of fiscal 2014 from its expanded enforcement efforts. 
Operating costs and expenses for fiscal year 2013 were $1.98 million,
decreased from $3.4 million in fiscal year 2012. The decrease is
primarily as a result of decreased contingent legal fees due to a
lack of patent license settlements in fiscal 2013. 
Net loss for fiscal year 2013 was $1.48 million or $(0.01) per
diluted share, compared to the net income of $1.2 million or $0.00
per diluted share for fiscal 2012. 
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, our ability to protect and monetize our IP portfolio,
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                    
                         Consolidated Balance Sheet                         
                   (000's omitted except per share amount)                  
                                 (unaudited)                                
                                                              March 31,     
                                                            2013      2012  
                                                             $         $    
ASSETS                                                                      
  Current                                                                   
    Cash and cash equivalents                                1,741     3,125
    Accounts receivable                                        176       168
    Inventory                                                   21        98
    Deposits and prepaid expenses                               60        40
                                                         --------- ---------
  Total current assets                                       1,998     3,431
    Inventory, long-term                                       104        89
    Property and equipment, net                                 13        18
                                                         --------- ---------
  Total assets                                               2,115     3,538
                                                         ========= =========
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
  Current                                                                   
    Accounts payable                                            67       100
    Accrued and other                                          273       211
                                                         --------- ---------
  Total current liabilities                                    340       311
  Stockholders' equity                                       1,775     3,227
                                                         --------- ---------
  Total liabilities and stockholders' equity                 2,115     3,538
                                                         ========= =========
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                    e.Digital Corporation and subsidiary                    
                    Consolidated Statement of Operations                    
                  (000's omitted except per share amount)                   
                                (unaudited)                                 
                                                          For the year      
                                                         ended March 31,    
                                                        2013        2012    
                                                          $           $     
Revenues                                                    442       4,727 
Operating costs and expenses:                                               
  Products and services                                     336         455 
  Patent licensing and litigation costs                     285          90 
  Contingent legal fees and expenses                         41       1,322 
Selling and administrative                                  777         875 
Research and related expenditures                           545         673 
                                                     ----------  ---------- 
Total operating costs and expenses                        1,984       3,415 
                                                     ----------  ---------- 
Net income (loss) and comprehensive income (loss)        (1,542)      1,312 
(Provision for) benefit from income taxes                    59        (117)
                                                     ----------  ---------- 
Net income (loss) and comprehensive income (loss)        (1,483)      1,195 
                                                     ==========  ========== 
Income (loss) per common share - basic and diluted        (0.01)       0.00 
                                                     ==========  ========== 
                                                                            
Weighted average common shares outstanding                                  
  Basic                                                 293,187     293,003 
                                                     ==========  ========== 
  Diluted                                               293,187     293,335 
                                                     ==========  ========== 

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