e.Digital Announces First Quarter Results
e.Digital Announces First Quarter Results
Receives Notice of Allowance for New Patent
SAN DIEGO, CA -- (Marketwired) -- 08/14/13 -- e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today reported financial results for its first quarter of fiscal 2014, ended June 30, 2013.
The Company reported a net loss of $71,437 or $(0.00) per share for the first quarter of fiscal 2014, compared to a net loss of $332,983 or $(0.00) per share for the prior year's first quarter. For the first quarter of fiscal 2014 revenues totaled $449,458 compared to $132,546 for the first quarter of the prior year. The most recent quarter included $392,000 of patent license revenues compared to no comparable patent license revenues for the first quarter of the prior year. Operating expenses increased to $520,895 from $465,529 for the prior year's comparable quarter primarily due to patent licensing and litigation costs associated with patent license revenues.
"Positive results from our Flash-R(TM) patent monetization efforts allowed us to significantly reduce losses for the quarter compared to the prior year's first quarter," commented Fred Falk, President and CEO of e.Digital. "With the assistance of our patent licensing law firm, Handal & Associates, we have been aggressively pursuing parties believed to infringe the Company's Flash-R patents covering the use of flash memory technologies. We entered into licensing and settlement agreements with multiple defendants and we expect more significant licensing revenues as we progress through the litigation and licensing process.
"Our intellectual property continues to expand as we recently received a notice of allowance from the United States Patent and Trademark Office for our patent application titled System and Method for Managing Information Stored in Semiconductors. The allowance of this patent along with a recently filed continuation, serves as the foundation of our new MicroSignet(TM) patent portfolio. The technology allows naturally occurring defects introduced in the semiconductor fabrication process to be used as a 'fingerprint' unique to each integrated circuit. As some of these faults are transient, these 'fingerprints' cannot be copied. So, every device in a system becomes part of rights management and data security. We believe this portfolio will be attractive to manufacturers of semiconductors. This is the third significant technology portfolio now including Flash-R, Nunchi(R) and MicroSignet IP and related patents.
"The marketing of our Nunchi patent portfolio continues through IPmetrics Intellectual Property Consulting, which is managing the valuation and monetization of this portfolio. We believe they are making good progress in getting the portfolio into the hands of the prospective licensees, many of whom are currently conducting due diligence," concluded Falk.
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 Condensed Consolidated Balance Sheet (000's omitted except per share amount) (unaudited) June 30, March 31, 2013 2013 $ $ ASSETS Current Cash 1,803 1,741 Accounts receivable 54 176 Inventory 14 21 Deposits and prepaid expenses 59 60 ---------- ---------- Total current assets 1,930 1,998 Inventory, long term 63 104 Property and equipment, net 12 13 ---------- ---------- Total assets 2,005 2,115 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable 130 67 Accrued and other 168 273 ---------- ---------- Total current liabilities 298 340 Stockholders' equity 1,707 1,775 ---------- ---------- Total liabilities and stockholders' equity 2,005 2,115 ========== ========== e.Digital Corporation and subsidiary Condensed Consolidated Statement of Operations (000's omitted except per share amount) (unaudited) For the three months ended June 30, 2013 2012 $ $ Revenues 449 133 Cost of revenues Products and services 108 94 Patent licensing and litigation costs 113 23 Contingent legal fees and expenses 15 3 Selling and administrative 202 200 Research and related expenditures 83 146 ---------- ---------- Total operating expenses 521 466 ---------- ---------- Income (loss) (72) (333) (Provision for) benefit from income taxes - - ---------- ---------- Income (loss) attributed to common stockholders (72) (333) ========== ========== Income (loss) per common share - basic and diluted (0.00) (0.00) ========== ========== Weighted average common shares outstanding Basic and diluted 293,187 293,003 ========== ==========
CONTACT: e.Digital Corporation: Investor Relations (858) 304-3016 ext. 205 firstname.lastname@example.org