Welcome!

News Feed Item

e.Digital Reports Fiscal First Quarter 2015 Financial Results

Licensing Success Drives Profitable Quarter

SAN DIEGO, CA -- (Marketwired) -- 08/13/14 -- e.Digital Corporation (OTCQB: EDIG), a long standing source of innovation and future-defining patented technologies, today announced results for its first quarter of fiscal year 2015, ended June 30, 2014.

The Company reported a net income of $30,439 or $0.00 per share for the first quarter of fiscal 2015, compared to a net loss of $71,437 or $(0.00) per share for the prior year's first quarter. For the first quarter of fiscal 2015 revenues totaled $682,748 compared to $449,458 for the first quarter of the prior year. The most recent quarter included $632,500 of patent license revenues compared to $392,000 for the first quarter of the prior year. Operating expenses increased to $652,309 from $520,895 for the prior year's comparable quarter primarily due to increased licensing and patent related costs.

Recent Highlights:

  • Continued Flash-R™ licensing success - New licensing agreements produced increased revenues and a profitable first fiscal quarter. Eight new agreements resulted from lawsuits filed in December 2013 against manufacturers and suppliers of Flash memory storage devices. Patent enforcement progress continues in other pending cases including those against SanDisk, GoPro, Toshiba, Seagate and Intel.

  • Nunchi® lawsuit filed - The Company's newest technologies embodied in its Nunchi® patents is demonstrating monetization promise. The Company recently identified several potential infringers of its Nunchi properties in the "connected" home security space. In July, the Company filed its first patent infringement lawsuit involving its Nunchi® portfolio against Dropcam, which uses various devices to communicate and monitor remote locations.

  • Expanded and strengthened the Company's Nunchi patent portfolio - On July 10, 2014, the Company filed a continuation patent application to broaden the coverage of its Nunchi patent portfolio. The portfolio now consists of six granted U.S. patents along with four continuation applications now pending.

  • microSignet™ technology - The Company believes the rapidly developing and changing data security market offers improved licensing opportunities as it seeks partnerships with semiconductor companies and established online security providers.

Management Commentary:

"It has been a busy and productive first quarter for e.Digital," commented Fred Falk, president and CEO of e.Digital. "In addition to entering into new Flash-R licensing arrangements, we filed our first Nunchi enforcement lawsuit and we are looking at other potential infringers. We have expended substantial time and effort to monetize our Nunchi portfolio through a formal licensing program; however, with infringing products entering the market we will also take enforcement actions to protect our intellectual property."

"In addition to our litigation activities, we are working with Handal & Associates to identify potential partners and licensees for our microSignet technology. Unlike other security solutions, microSignet utilizes the internal physical characteristics of semiconductor memories, to identify a 'fingerprint' that uniquely identifies a given piece of hardware like a smart phone or desktop computer. microSignet, uses this information to authenticate, or bind valuable content to a particular device. We believe that the Company's microSignet security technology may be the key to providing a compelling solution to the threat of on-going internet security breaches," 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™ 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
                    Condensed Consolidated Balance Sheet
                  (000's omitted except per share amount)
                                (unaudited)

                                                     June 30,     March 31,
                                                       2014         2014
                                                         $            $
ASSETS
  Current
    Cash                                                  1,951        1,788
    Accounts receivable                                     237          239
    Inventory                                                14           14
    Deposits and prepaid expenses                            70           65
                                                   ------------ ------------
  Total current assets                                    2,272        2,106
    Inventory, long term                                     39           40
    Property and equipment, net                              13           14
                                                   ------------ ------------
  Total assets                                            2,324        2,160
                                                   ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current
    Accounts payable                                        251           66
    Accrued and other                                       166          231
                                                   ------------ ------------
  Total current liabilities                                 417          297
  Stockholders' equity                                    1,907        1,863
                                                   ------------ ------------
  Total liabilities and stockholders' equity              2,324        2,160
                                                   ============ ============



                    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,
                                                      2014         2013
                                                        $            $
Revenues                                                   683          449
Cost of revenues
  Products and services                                     54          108
  Patent licensing and litigation costs                    112          113
  Contingent legal fees and expenses                       207           15
Selling and administrative                                 187          202
Research and related expenditures                           93           83
                                                  ------------ ------------
Total operating expenses                                   653          521
                                                  ------------ ------------
Income (loss)                                               30          (72)
(Provision for) benefit from income taxes                    -            -
                                                  ------------ ------------
Income (loss) attributed to common stockholders             30          (72)
                                                  ============ ============
Income (loss) per common share - basic and
 diluted                                                  0.00        (0.00)
                                                  ============ ============

Weighted average common shares outstanding
  Basic and diluted                                    293,328      293,187
                                                  ============ ============


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Tricky charts and visually deceptive graphs often make a case for the impact IT performance has on business. The debate isn't around the obvious; of course, IT performance metrics like website load time influence business metrics such as conversions and revenue. Rather, this presentation will explore various data analysis concepts to understand how, and how not to, assert such correlations. In his session at 20th Cloud Expo, Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Sys...