SAN DIEGO, CA--(MARKET WIRE)--Nov 9, 2007 -- e.Digital Corporation (OTC BB:EDIG.OB - News), a leading innovator of dedicated portable inflight entertainment (IFE) systems and patented flash memory-related technology, reported record revenues and a reduced net loss for its fiscal 2008 second quarter and six months ended September 30, 2007.

For the second quarter, e.Digital reported revenues of $2.42 million, a substantial increase from revenues of $13,000 for the second quarter of the year prior and an 86% increase over revenues of the immediately preceding quarter ended June 30, 2007. The Company reported revenues of $3.72 million for the first six months of fiscal 2008 compared to $34,000 for the same six-month period the prior year. Revenues for the first six months of fiscal 2008 included quantity shipments of the Company's proprietary eVU(TM) mobile entertainment system to multiple in-flight entertainment (IFE) customers including major European and Asian airlines.

Gross profit for the second quarter of fiscal 2008 was $597,000 or 25% of revenues. Gross profit for the first six months of fiscal 2008 was $844,000 or 22% of revenues. Operating costs in fiscal Q2 2008 were $688,000, compared to $879,000 in fiscal Q2 2007. For the six months ended September 30, 2007, operating costs were $1.44 million compared to $1.57 million for the first six months of fiscal 2007. The Company incurred increases in sales and marketing expenses, more than offset by reduced research and development costs.

Net loss for the second quarter decreased significantly to $158,000 from $1.60 million for the second quarter of the year prior. For the first six months of fiscal 2008, the Company's net loss was $751,000, a substantial decrease from $2.73 million for the same six months in fiscal 2007. The improved financial performance is the result of current year eVU product and service revenues resulting in positive product margins as well as containing costs and reducing operating expenses. Net loss available to common stockholders for the second fiscal quarter and for the first six months of fiscal 2008 were $(0.00) per basic and diluted share, compared to $(0.01) per basic and diluted share for the same periods last year.

"In the last twelve months, we have sold over $5 million in products and services to airlines around the world," said Will Blakeley, president of e.Digital. "With the recent successful launch of our proprietary eVU Extended Range(TM) (eVU-ER(TM)) and its industry leading 20+ hours of continuous video playback from a single battery, we continue to expand our leadership in dedicated portable IFE systems. We expect new IFE business and follow-on orders this quarter and in calendar 2008."

"Our IP team is preparing detailed documentation to support additional enforcement actions of our Flash-R(TM) patent portfolio against a broad range of companies," added Blakeley. "The recent commencement of enforcement actions was an important milestone and we look forward to monetizing our investment in a robust intellectual property asset base which includes being the first company to employ and patent important aspects of the use of removable flash memory in portable recording devices."

 

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