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
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
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 sett...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
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.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...