Press Release Source: e.Digital Corp.
e.Digital Corp. Reports First Quarter Results
Thursday August 12, 8:45 am ET
Company Receives Over $1 Million in Customer Deposits
SAN DIEGO--(BUSINESS WIRE)--Aug. 12, 2004--e.Digital Corp. (OTC:EDIG - News), a provider of innovative, proprietary digital audio, portable video, wireless and automotive technology platforms, today reported revenue for the first quarter of fiscal 2005, ended June 30, 2004. Revenue for the quarter was $0.093 million compared to $1.153 million in the first quarter of fiscal 2004. As previously reported, and due mainly to delayed customer purchase orders, most of the business booked in the June quarter is scheduled to be shipped and accounted for in this fiscal quarter ending September 30, 2004. As of June 30, e.Digital had received purchase orders for approximately $2 million of which over $1 million had been received and recorded as customer deposits.
The company reported a gross profit of $0.068 million in the first quarter compared to $0.070 million for the same quarter in fiscal 2004. The company also reported an operating loss of $0.704 million for the quarter compared to $0.509 million for the same period in fiscal 2004. Net loss attributable to common stockholders after deducting non-cash dividends on preferred stock was less than $(0.01) per share for each quarter.
Management Commentary
"In spite of the delayed purchase orders, our business is improving," said Atul Anandpura, president and chief executive officer of e.Digital Corp. "We have added engineering resources in India to support increasing ODM/OEM business for the customization of branded products based on our MicroOS(TM)-powered technology platforms. The majority of the ODMs/OEMs we are working with plan to manufacture e.Digital-powered devices for their own customers who will in turn brand and market these products in locations throughout the world."
"Beyond growing in-flight entertainment (IFE) orders from APS and digital audio products (DAP) licensing business, we remain especially focused on business opportunities for our portable video platform (Kino(TM)) with satellite and cable providers," remarked Anandpura. "Our DAP and Kino platforms provide their large installed customer base the capability of accessing their favorite video and audio selections at a time and place of their choosing. While some of our customers are scheduled to bring branded versions of our DAP and Kino platforms to market through retailers this year, we believe these devices will be much more successful when coupled with customized host hardware and the content, readily available through cable and satellite companies and other legitimate content portals."
"We are also engaged in larger screen size, Kino-based non-entertainment business opportunities where our proprietary hardware encryption technology is essential for securing content," continued Anandpura.
Anandpura stated, "Our proposed MicroOS licensing agreement with a large technology company and the proposed convergent PVPR/DAP devices for branding by large Asian ODMs/OEMs are progressing. These business opportunities are taking time to develop due to the number of individuals involved within each of the corporations as well as their extensive due diligence process."
Commenting on the Eclipse by Fujitsu Ten (EF10) arbitration process, Anandpura remarked, "The arbitration panel has been selected and mutually agreed upon by EF10 and e.Digital. The panel is scheduled to meet within the next 45 days to set a date for the arbitration."
"In mid-July, we participated in a very successful World Airline Entertainment Association (WAEA) meeting where APS' MicroOS-powered digEplayer(TM) received strong endorsements from representatives of Alaska Airlines and 'first-run' content providers," said Anandpura. "These endorsements are translating into additional content and increasing IFE orders. We are beginning to realize some of the expected several million dollars in revenue from digEplayer sales and other services we provide APS."
Concluded Anandpura, "With further business anticipated to augment the purchase orders we are delivering under, we expect this second fiscal quarter to be a record quarter for e.Digital."
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Highlights and Announcements for the First Fiscal Quarter
-- Received first follow-on Alaska Airlines order from APS.
-- Announced and debuted, with Fusion Digital Technology Ltd.,
the first portable video recorder/player for digital video
recorder (DVR) Set-Top Box content downloading.
-- Received first JetsGo order from APS.
-- Received first Hawaiian Airlines order from APS.
-- Promotion of Atul Anandpura to president and chief executive
officer.
-- Closed $1 million note financing.
About e.Digital Corp.: e.Digital Corp. partners with leading original design and equipment manufacturers (ODMs/OEMs) licensing, designing and providing manufacturing services for ODM/OEM-branded digital video, digital audio and wireless products based on the company's proprietary MicroOS(TM)-enabled technology platforms. e.Digital specializes in the delivery and management of open and secure digital content through it's Personal Video, Personal Audio, Automotive and Wireless technology platforms. e.Digital's services include the licensing of the company's MicroOS(TM), custom software and hardware development, industrial design and manufacturing services through the company's manufacturing partners. For more information about e.Digital and its technology platforms, please visit the company Web site at 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. 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. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those 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 by e.Digital Corp. with the Securities and Exchange Commission ("SEC"). e.Digital Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.
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Contact:
e.Digital Corp.
Robert Putnam, 858-679-1504
rputnam@edigital.com
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Source: e.Digital Corp.
I guess it looks better if you use $0.093 million instead of $93,000......gives you that warm feeling seeing million
