e.Digital Reports Fiscal Year 2014 Results

e.Digital Reports Fiscal Year 2014 Results 
Company Reports Profitable Year 
SAN DIEGO, CA -- (Marketwired) -- 06/19/14 --  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, 2014. 
Highlights: 


 
--  Continued Flash-R(TM)licensing success - During fiscal year 2014,
    the Company entered into 21 license and settlement agreements. 17 of
    these arrangements are as a result of the original group of lawsuits
    filed by the Company in late 2012 and early 2013. One additional case
    was settled in the current fiscal year, with three remaining cases on
    hold pending the outcome of the collateral estoppel appeal the Company
    filed with the Federal Circuit Court of Appeals in October of 2013.
    
    
--  Additional lawsuits filed - In early December 2013, the Company filed
    additional lawsuits against manufacturers and suppliers of Flash
    memory storage devices, including Toshiba, Seagate, Intel, and others.
    Since January 1, 2014, the Company secured 10 new patent license
    agreements stemming from the additional lawsuits. These agreements
    were executed during the last quarter of the Company's fiscal 2014
    (ended March 31, 2014) and the current fiscal year's first quarter.
    These lawsuits assert claim one of the Company's U.S. Patent No.
    5,839,108, covering the use of flash memory technologies.
    
    
--  Expanded and strengthened the Company's patent portfolio - At March
    31, 2014, the Company's intellectual property portfolio included
    twelve U.S. patents, three continuations and one continuation in part.
    Efforts are underway to continue to expand the Company's intellectual
    property roadmap.
    
    
--  Nunchi(R)and microSignet(TM)marketing - The Company modified its
    relationship with Handal & Associates ("Handal") to include the
    marketing and enforcement of the Company's Nunchi and microSignet
    patent portfolios. The Company's Flash-R litigation has aided in
    creating an awareness of its intellectual property among household
    named companies.

  
Management Commentary:
 "Licensing of our Flash-R patent portfolio
continues to be our primary source of
 revenue resulting in a profit
for fiscal 2014," commented Fred Falk, president and CEO of
e.Digital. "We have worked closely with Handal to enforce our patents
and address the many challenges presented by multiple Flash-R
defendants. We expect additional Flash-R licensing revenue in Fiscal
2015.  
"We are working with Handal to identify potential licensees and also
possible infringers of our Nunchi patents. We are excited about our
microSignet security technology due to the increased awareness and
need for new security solutions as a result of major corporate
security breaches. There are many areas we believe microSignet offers
a compelling enhanced security solution. Unlike other security
solutions, microSignet utilizes the internal physical characteristics
of semiconductor memories, to establish a 'fingerprint' which
uniquely identifies a given piece of hardware, such as a smart phone
or desktop computer, which can be used for device authentication, or
to bind valuable content to a particular device. For a more complete
description and video demonstration, we encourage you to please visit
the microSignet webpage. We are excited about the industry trends we
are seeing in the area of context awareness, and the need for more
secure and user friendly online security solutions. We believe our
Nunchi and microSignet technologies offer compelling solutions in
these rapidly evolving areas," concluded Falk. 
Fiscal 2014 Financial Summary:
 Revenues totaled $2,280,758 for the
fiscal year ended March 31, 2014. Revenues for fiscal year 2014
included $2,045,385 in licensing fees from the Company's Flash-R(TM)
patent portfolio and $235,373 in eVU(TM) portable in flight
entertainment (IFE) sales and services. For the prior year, licensing
revenue was $11,669 and eVU revenues were $430,745. During fiscal
2014, the Company licensed 21 companies, and in the prior year had no
new patent license agreements.  
Operating costs and expenses for fiscal year 2014 were $2.19 million,
increased from $1.98 million in fiscal year 2013. The increase is
primarily as a result of increased contingent legal fees due to
increased current year patent license settlements.  
Net income for fiscal year 2014 was $56,084 or $0.00 per diluted
share, compared to the net loss of $1.48 million or $(0.01) per
diluted share for fiscal 2013. 
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: This press release includes forward-looking information and
statements. Except for historical information contained in this
release, statements in this release may constitute forward-looking
statements regarding assumptions, projections, expectations, targets,
intentions or beliefs about future events that are based on
management's belief, as well as assumptions made by, and information
currently available to, management. While the Company believes that
expectations are based upon reasonable assumptions, there can be no
assurances that goals and strategy will be realized. Numerous
factors, including risks and uncertainties, may affect actual results
and may cause results to differ materially from those expressed in
forward-looking statements made by the Company or on its behalf. Some
of these factors include the substantial uncertainties inherent in
pursuing patent enforcement activities including, but not limited to
the risks and costs of litigation and support activities, the timing
and amount of settlements/licenses if any, the acceptance of existing
and future products and technologies, the difficulty of
commercializing and protecting new technology such as the Company's
Nunchi, microSignet and other technologies, the impact of competitive
products, technologies and pricing, general business and economic
conditions, and other factors detailed in the Company's Annual Report
on Form 10-K and other periodic reports filed with the SEC. Except as
required by law, the Company specifically disclaims any obligation to
update or revise any forward-looking statement whether as a result of
new information, future developments or otherwise. 


 
                                                                            
                    e.Digital Corporation and subsidiary                    
                         Consolidated Balance Sheet                         
                   (000's omitted except per share amount)                  
                                 (unaudited)                                
                                                            March 31,       
                                                        2014         2013   
                                                         $            $     
ASSETS                              
                                        
  Current                                                                   
    Cash and cash equivalents                             1,788        1,741
    Accounts receivable                                     239          176
    Inventory                                                14           21
    Deposits and prepaid expenses                            65           60
                                                    -----------  -----------
  Total current assets                                    2,106        1,998
    Inventory, long-term                                     40          104
    Property and equipment, net                              14           13
                                                    -----------  -----------
  Total assets                                            2,160        2,115
                                                    ===========  ===========
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
  Current                                                                   
    Accounts payable                                         66           67
    Accrued and other                                       231          273
                                                    -----------  -----------
  Total current liabilities                                 297          340
  Stockholders' equity                                    1,863        1,775
                                                    -----------  -----------
  Total liabilities and stockholders' equity              2,160        2,115
                                                    ===========  ===========
                                                                            
                                                                            
                    e.Digital Corporation and subsidiary                    
                    Consolidated Statement of Operations                    
                  (000's omitted except per share amount)                   
                                (unaudited)                                 
                                                          For the year      
                                                         ended March 31,    
                                                        2014        2013    
                                                          $           $     
Revenues                                                  2,281         442 
Cost of revenues:                                                           
  Products and services                                     308         336 
  Patent licensing and litigation costs                     450         285 
  Contingent legal fees and expenses                        221          41 
Selling and administrative                                  853         777 
Research and related expenditures                           355         545 
                                                     ----------  ---------- 
Total operating expenses                                  2,187       1,984 
                                                     ----------  ---------- 
Other income (expense)                                        2           - 
Net income (loss) and comprehensive income (loss)            94      (1,542)
(Provision for) benefit from income taxes                   (40)         59 
                                                     ----------  ---------- 
Net income (loss) and comprehensive income (loss)            56      (1,483)
                                                     ==========  ========== 
Income (loss) per common share - basic and diluted         0.00       (0.01)
                                                     ==========  ========== 
                                                                            
Weighted average common shares outstanding                                  
  Basic                                                 293,328     293,187 
                                                     ==========  ========== 
  Diluted                                               293,328     293,187 
                                                     ==========  ========== 

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