SOURCE: e.Digital Corporation

August 09, 2012 16:00 ET

e.Digital Announces First Quarter Results

SAN DIEGO, CA--(Marketwire - Aug 9, 2012) - e.Digital Corporation (OTCQB: EDIG) (OTCBB: EDIG), a leading innovator of dedicated portable entertainment systems and patented flash memory-related technology, today reported financial results for its first quarter of fiscal 2013 ended June 30, 2012.

The Company reported a net loss of $332,983 or $(0.00) per share, for the first quarter of fiscal 2013 compared to a net income of $731,237 or $0.00 per share for the prior year's first quarter. For the first quarter of fiscal 2013 revenues totaled $132,546 compared to $2,181,815 for the first quarter of the prior year. The prior year's first quarter had $2,025,000 of patent license revenue with no comparable revenue in the most recent quarter. Gross profit for the first quarter was $36,079 or 28% of revenues, compared to $1,169,369 or 54% of revenues, for the prior year's first quarter. Operating expenses declined to $369,062 from $438,132 for the prior year's comparable quarter primarily due to lack of annual meeting costs of $41,591 spent in prior year and reduced consulting costs.

The reexamination of two of the Company's patents significantly impacted the Company's revenue stream. "Now that the '774 patent is out of reexamination and our response to the '737 final rejection has been filed with the USPTO, we soon expect to have this process behind us and continue Flash-R litigation efforts," commented Fred Falk, president and CEO of e.Digital.

"To aid in our Nunchi marketing efforts, we have updated our website to better portray the Company's history and record of innovation, and to communicate to prospective licensees and our shareholders a high level understanding of our Nunchi innovations."

Falk concluded, "We continue to research and evaluate new opportunities to strengthen our diverse intellectual property portfolio."

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: 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, the stage of product and market development, 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,
    2012   2012
    $   $
ASSETS        
  Current        
    Cash   2,852   3,125
    Accounts receivable   80   168
    Inventory   79   98
    Deposits and prepaid expenses   27   40
  Total current assets   3,038   3,431
    Inventory, long term   96   89
    Property and equipment, net   17   18
  Total assets   3,151   3,538
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
  Current        
    Accounts payable   82   100
    Accrued and other   170   211
  Total current liabilities   252   311
  Stockholders' equity   2,899   3,227
  Total liabilities and stockholders' equity   3,151   3,538
         
   
   
 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,  
    2012     2011  
    $     $  
Revenues   133     2,182  
Cost of revenues   96     1,012  
  Gross profit   37     1,170  
Operating expenses:            
  Selling and administrative   223     249  
  Research and development   146     188  
Total operating expenses   369     437  
Operating income (loss)   (332 )   733  
Other income (expenses)   -     -  
Income (loss) before income taxes   (332 )   733  
Provision for income taxes   -     (1 )
Income (loss)   (332 )   732  
Dividends on convertible preferred stock   -     -  
Income (loss) for the period   (332 )   732  
Income (loss) per common share - basic and diluted   (0.00 )   0.00  
             
Weighted average common shares outstanding            
  Basic and diluted   293,003     293,003