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FOR IMMEDIATE RELEASE
14AUG2008
e.DIGITAL REPORTS FISCAL Q1 2009 FINANCIAL RESULTS
IP Monetization Efforts Progressing
(SAN DIEGO, CA, – August 14, 2008) – e.Digital Corporation (OTC: EDIG),
a leading technology innovator of dedicated portable entertainment
systems and patented flash memory-related technology today reported
revenues for its fiscal Q1 2009 ended June 30, 2008 totaled $378,000,
compared to revenues of $1.3 million for the same period a year ago
which included a $760,000 European in-flight entertainment (IFE) order.
Fiscal Q1 sales activity slowed substantially due to airline industry
economics associated with the significant increase in jet fuel costs.
“After a tough first quarter, we’re seeing the IFE market improve as
airlines adjust to higher fuel prices and begin to move ahead with their
dedicated portable IFE plans,” remarked Will Blakeley, e.Digital’s
president and chief technical officer. “In conjunction with the
September World Airline Entertainment Association (WAEA) Conference and
Exhibition, we look forward to announcing new customers for our Best in
Class eVU™ entertainment system.”
Gross profit for Q1 2009 was $114,000 or 30% of revenues, compared to
$246,000 or 19% of revenues. The improved gross margin percentage
resulted from a higher percentage of content services and improved unit
costing compared to the same period in the prior year. Net loss for the
three months ended June 30, 2008 was $669,000 or $(0.00), compared to a
net loss of $594,000 or $(0.00) for the same period last year. The
increased loss was primarily the result of reduced revenues offset by
improved product margins and reduced operating costs.
e.Digital’s senior vice president, Robert Putnam, commented on the
Company’s intellectual property (IP) monetization activities, “Through
our legal representatives, licensing discussions and legal efforts are
ongoing with the companies named in our complaints filed in the U.S.
District Court for the Eastern District of Texas.”
“We believe the five patents that comprise our Flash-R™ patent portfolio
are fundamental to the use of flash memory in many of today’s popular
consumer electronic products that total in the billions of dollars in
annual sales,” Putnam continued.
“In anticipation of our September 17, 2008 shareholders meeting, we
encourage all shareholders to read the proxy material currently being
disseminated through our proxy service and to return their votes as soon
as possible,” concluded Putnam. “We look forward to releasing further
business information and meeting with shareholders this quarter.”
About e.Digital Corporation: e.Digital is a
leading innovator of dedicated portable inflight entertainment systems.
More than 30 airlines have made dedicated portable systems powered by
e.Digital technology their inflight entertainment choice. e.Digital also
owns and is pursuing the monetization of its Flash-R™ portfolio of flash
memory-related patents. e.Digital was the first company to employ and
patent important aspects of the use of removable flash memory in
portable recording devices. For more information about e.Digital and eVU,
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.
CONTACT: e.Digital Corporation: Robert Putnam,
(858) 304-3016 ext. 205, rputnam@edigital.com
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