e.Digital Corporation Reports Q1 Fiscal 2007 Results; Provides Update on eVU(TM) Business and Flash Memory-based IP Monetization Efforts.SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- e.Digital Corporation e.Digital Corporation (OTCBB: EDIG) is a public company based in San Diego, California and trades over-the-counter on the OTCBB under the ticker symbol "EDIG." Founded in 1988 as Norris Communicatons (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :EDIG EDIG European Defence Industries Group ), a leading innovator of proprietary secure digital video technology and products, and patented technology in the utilization of flash memory in portable devices, today reported revenues for the first quarter of its fiscal year 2007 ended June 30, 2006 totaled $21,000 compared to revenues of $998,000 for the first quarter of fiscal 2006. The decrease resulted from the inability or unwillingness of contract manufacturer, Maycom, to timely deliver a 1250 unit digEplayer(TM) order as previously reported and the resulting digEcor litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. which has hindered volume eVU(TM) orders. At June 30, 2006 the prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. order was still behind schedule.
While waiting several weeks for digEcor's definitive instructions
regarding the 1250 unit order, Maycom has recently advised the Company
that it is going ahead with its preparations to begin manufacturing the
delayed order. Maycom has consented to onsite inspections by employees
of e.Digital during the manufacturing process and has agreed to daily
penalties for any further late delivery beyond their promised
mid-October delivery date. However, delivery of this order is not
assured nor can there be assurance that digEcor will accept delivery
pursuant to the terms of the order.The company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $684,000 for its first fiscal quarter 2007, compared to an operating loss of $530,000 for the same period last year. Net loss available to common stockholders for the first fiscal quarter of 2007 was $(0.01) per basic diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $(0.00) per basic diluted share for the same period last year. "While the digEcor complaint has hindered volume eVU mobile entertainment system orders to date, our turnkey See turnkey system. entertainment services business continues to be well-received by companies offering, and expected to offer, eVUs to their customers/passengers/patients," said Will Blakeley, e.Digital's president and chief technical officer. "With Maycom's scheduled delivery of the delayed 1250 units in mid-October and volume eVU production beginning this quarter with our U.S. manufacturer, we are focused on closing volume eVU orders and aggressively pursuing the monetization Monetization The securitization of the gross revenues of a contract. of our flash memory patent portfolio." In addition to direct eVU product sales, e.Digital believes that as its turnkey entertainment services solution is adopted, the Company will capture more margin on each unit sale and collect monthly revenues from content and other services, and could become profitable with annual deliveries totaling approximately 4,000 eVU units. Blakeley concluded by providing an update on the company's efforts to monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. its flash memory-based patent portfolio. "Over the last month, we have had productive IP consultations with several well-respected intellectual property law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
About e.Digital Corporation:. e.Digital is a provider of secure portable Video on Demand products including its eVU(TM) mobile entertainment system. e.Digital also licenses its MicroOS(TM), Content Mark-Up Language (CML 1. CML - A query language. ["Towards a Knowledge Description Language", A. Borgida et al, in On Knowledge Base Management Systems, J. Mylopoulos et al eds, Springer 1986]. 2. CML - Concurrent ML. ) application, LDP LDP - Linux Documentation Project software, patent-pending Hardware Security technologies, Digital Rights Management (DRM (1) (Digital Radio Mondiale) A digital audio broadcasting (DAB) system for AM radio in Europe. See HD Radio. (2) (Digital Rights M ) solutions, Content Download applications, Encryption The reversible transformation of data from the original (the plaintext) to a difficult-to-interpret format (the ciphertext) as a mechanism for protecting its confidentiality, integrity and sometimes its authenticity. Encryption uses an encryption algorithm and one or more encryption keys. and Content Protection solutions, and Video Display software applications. Additionally, e.Digital partners with leading, innovative companies, designing and providing manufacturing services for products employing the Company's proprietary digital technology platforms. e.Digital is also pursuing the monetization of its flash memory-related patent portfolio. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . 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. These statements are not guarantees of future performance and involve risks, uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the Company's ability to finance its operations, favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. resolve the complaint filed by digEcor, Inc. against the Company and certain of its officers and employees, sell its products, implement a turnkey financial, product, and maintenance solution, manufacture and ship orders in a timely manner, secure additional business, monetize its patent portfolio and other risks identified and discussed in our filings with the Securities and Exchange Commission ("SEC"). 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-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Form 10-Q Form 10-Q See 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. Note: eVU and MicroOS are trademarks of e.Digital Corporation. All other company, product, and service names are the property of their respective owners.
e.Digital Corporation and subsidiary
Condensed Balance Sheet
(000's omitted except per share amounts)
(unaudited)
June 30, March 31,
2006 2006
$ $
--------- ---------
ASSETS
Current
Cash 503 1,059
Accounts receivable - 3
Deposits and prepaid expenses 69 32
--------- ---------
Total current assets 572 1,094
--------- ---------
Property and equipment, net 50 62
--------- ---------
Total assets 622 1,156
========= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current
Accounts payable 369 261
Other payables and accruals 238 225
Customer deposits 814 794
Accrued lease liability 515 515
Dividends 436 402
Convertible subordinated notes 765 397
Unsecured notes 1,040 1,016
--------- ---------
Total current liabilities 4,177 3,610
--------- ---------
Stockholders' deficit (3,555) (2,454)
--------- ---------
Total liabilities and stockholders' deficit 622 1,156
========= =========
e.Digital Corporation and subsidiary
Condensed Statement of Operations
(000's omitted except per share amounts)
(unaudited)
For the three months
ended June 30,
2006 2005
$ $
------------ ------------
Total revenue 21 998
Cost of revenue 17 827
------------ ------------
Gross profit 4 171
Operating expenses:
Selling and administrative 335 339
Research and development 353 362
------------ ------------
Total operating expenses 688 701
------------ ------------
Operating loss (684) (530)
Other income (expense):
Interest expense (447) (121)
Other 8 4
------------ ------------
Other income (expense) (439) (117)
------------ ------------
Loss and comprehensive loss (1,123) (647)
Dividends on convertible preferred stock (34) (43)
------------ ------------
Loss attributable to common stockholders (1,157) (690)
============ ============
Loss per common share - basic and diluted $(0.01) $(0.00)
Weighted average common shares outstanding 200,431,000 175,208,630
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