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e.Digital Corporation (OTCMKTS:EDIG) Stock to Watch

e.Digital Corporation(OTCMKTS:EDIG) has witnessed some pretty sharp and frequent ups and downs. After maintaining high of $0.08 in December 2013 it started to decline and is now trading near its support levels at $0.0385.
In the last 52 weeks the lowest EDIG saw of $0.03 and the highest at $0.09.

e.Digital Corporation(OTCMKTS:EDIG) has been keeping itself in news. E Digital has filed lawsuits against Dropcam, Toshiba, Kingston and a few others, which could be a red flag for investors.

e.Digital Corporation (OTCMKTS:EDIG), for more than 20 years, e.Digital’s ideas and inventions have impacted the evolution of consumer products. Today, e.Digital innovations, including its Flash-R™ portfolio of flash memory-related patents, are essential to many portable consumer electronic products. The Company pioneered dedicated portable in-flight entertainment systems and more than 30 airlines have made e.Digital powered products their in-flight entertainment choice.

e.Digital Corporation (OTCMKTS:EDIG) a long standing source of innovation and future-defining patented technologies, today announced results for its first quarter of fiscal year 2015, ended June 30, 2014.

The Company reported a net income of $30,439 or $0.00 per share for the first quarter of fiscal 2015, compared to a net loss of $71,437 or $(0.00) per share for the prior year’s first quarter. For the first quarter of fiscal 2015 revenues totaled $682,748 compared to $449,458 for the first quarter of the prior year. The most recent quarter included $632,500 of patent license revenues compared to $392,000 for the first quarter of the prior year. Operating expenses increased to $652,309 from $520,895 for the prior year’s comparable quarter primarily due to increased licensing and patent related costs.

Recent Highlights:

Continued Flash-R™ licensing success – New licensing agreements produced increased revenues and a profitable first fiscal quarter. Eight new agreements resulted from lawsuits filed in December 2013 against manufacturers and suppliers of Flash memory storage devices. Patent enforcement progress continues in other pending cases including those against SanDisk, GoPro, Toshiba, Seagate and Intel.

Nunchi® lawsuit filed – The Company’s newest technologies embodied in its Nunchi® patents is demonstrating monetization promise. The Company recently identified several potential infringers of its Nunchi properties in the “connected” home security space. In July, the Company filed its first patent infringement lawsuit involving its Nunchi® portfolio against Dropcam, which uses various devices to communicate and monitor remote locations.

Expanded and strengthened the Company’s Nunchi patent portfolio – On July 10, 2014, the Company filed a continuation patent application to broaden the coverage of its Nunchi patent portfolio. The portfolio now consists of six granted U.S. patents along with four continuation applications now pending.

microSignet™ technology – The Company believes the rapidly developing and changing data security market offers improved licensing opportunities as it seeks partnerships with semiconductor companies and established online security providers.

Management Commentary:

“It has been a busy and productive first quarter for e.Digital,” commented Fred Falk, president and CEO of e.Digital. “In addition to entering into new Flash-R licensing arrangements, we filed our first Nunchi enforcement lawsuit and we are looking at other potential infringers. We have expended substantial time and effort to monetize our Nunchi portfolio through a formal licensing program; however, with infringing products entering the market we will also take enforcement actions to protect our intellectual property.”

“In addition to our litigation activities, we are working with Handal & Associates to identify potential partners and licensees for our microSignet technology. Unlike other security solutions, microSignet utilizes the internal physical characteristics of semiconductor memories, to identify a ‘fingerprint’ that uniquely identifies a given piece of hardware like a smart phone or desktop computer. microSignet, uses this information to authenticate, or bind valuable content to a particular device. We believe that the Company’s microSignet security technology may be the key to providing a compelling solution to the threat of on-going internet security breaches,” concluded Falk.

e.Digital Corporation(OTCMKTS:EDIG) was able to generate revenue of $2.28 Mfor the year ending March 31, 2013.

It has total assets of $2.16 Mand liabilities stand at $296,000with shareholder’s equity positively at $1.86 M.

Keeping in view the fundamentals, market capitalization at $11.29 M is overvalued.

http://www.equitiesfocus.com/e-digital-corporation-otcmktsedig-stock-to-watch/18231/