e.Digital Reports Fiscal Year 2014 Results
June 19 2014 - 4:30PM
Marketwired
e.Digital Reports Fiscal Year 2014 Results
Company Reports Profitable Year
SAN DIEGO, CA--(Marketwired - Jun 19, 2014) - 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™ 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® and microSignet™ 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™
patent portfolio and $235,373 in eVU™ 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™
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 |
|
|
|
|
|
|
|
|