e.Digital Corporation, www.edigital.com – a developer of patented flash memory technologies and provider of cutting-edge, in-flight entertainment (IFE) with market penetration into over 30 airlines, announced solid FY10 (ended March 31) results yesterday.
President and CEO of EDIG, Fred Falk, commented on the successful, 30-percent growth of the Company’s eVU™ IFE market, the many new and follow-up orders for the platform, the “increased portable IFE interest from long-haul carriers” and the progress on the next generation of the platform – all of which were exciting indicators that 2011 is going to be a good year.
Another major promising factor is the successful conclusion of round one of Flash-R™ flash-memory-related intellectual property (IP) cases, and the accelerated court schedule for a second round (from which some of the companies have already agreed to settle and pay royalties). Falk also cited the Company’s victory in the digEcor litigation and the paying off of all corporate debt.
With revenue of $2.6M for the year, $1.6M from the Flash-R patent portfolio licensing fees and some $954k from eVU sales and services, the Company did quite well despite reduced licensing fees (down from $10.1M in 09), due to the late conclusion of the first round of IP filings:
• Gross Profit of $1.3M (51% of revenue), compared to $6.5 (59% of revenue) in 09, due to reduction in higher margin patent license revenue
• Operating Expenses down 12%, to $2.2M, due to successful resolution of the digEcor litigation in November 09
• Loss attributable to common stockholders down to $985k ($0.00 per diluted share), compared to net income attributable of $2.8M ($0.01/share) in 09