EX-99.1 2 d811313dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Unwired Planet Announces Financial Results

 

LOGO

UNWIRED PLANET, INC. ANNOUNCES FIRST QUARTER FISCAL 2015 FINANCIAL RESULTS

RENO, NV – Oct. 30, 2014—Unwired Planet, Inc. (NASDAQ: UPIP) today announced financial results for the first quarter of fiscal year 2015.

Revenue for the first quarter ended September 30, 2014 was $1.3 million, while operating loss from continuing operations totaled $11.4 million.

“We continue to make progress on our litigation efforts and are encouraged by the results of the Markman hearings which occurred during the quarter,” said Phil Vachon, chairman of the board.

On a GAAP basis, net loss for the first fiscal quarter ended September 30, 2014 was $12.1 million, or $0.11 per share, compared with a net loss of $7.2 million, or $0.07 per share, in the September quarter of the preceding year. G&A expense during the September 2014 quarter was adversely impacted by expenses related to compensation and evaluating strategic options.

Conference Call Information

Unwired Planet has scheduled a conference call for 5:00 p.m. eastern time today to discuss its financial results for its first quarter fiscal 2015. Interested parties may access the conference call over the Internet through the company’s website at www.unwiredplanet.com or by telephone at 800-211-3767 or 719-457-2618 (international). A replay of the conference call will be available for one week (November 6), beginning at 8:00 p.m. eastern time on October 30 by calling 888-203-1112. The replay can be accessed internationally by calling 719-457-0820, access code: 8039558.

 

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Unwired Planet Announces Financial Results

 

A live webcast of the call, together with supplemental financial information, will also be available on the Investors section of Unwired Planet’s website at http://www.unwiredplanet.com/investors. A replay will be available on the website for at least three months.

About Unwired Planet

Unwired Planet, Inc. (NASDAQ: UPIP) is the inventor of the Mobile Internet and a premier intellectual property company focused exclusively on the mobile industry. The company’s patent portfolio of approximately 2,500 issued and pending U.S. and foreign patents, includes technologies that allow mobile devices to connect to the Internet and enable mobile communications. The portfolio spans 2G, 3G, and 4G technologies, as well as cloud-based mobile applications and services. Unwired Planet’s portfolio includes patents related to key mobile technologies, including baseband mobile communications, mobile browsers, mobile advertising, push notification technology, maps and location based services, mobile application stores, social networking, mobile gaming, and mobile search. Unwired Planet is headquartered in Reno, Nevada. References in this release to Unwired Planet may be to Unwired Planet, Inc. or its subsidiaries.

Cautionary Note Regarding Forward Looking Statements

Any statements in this press release with respect to future events or expectations, including statements regarding the Company’s licensing activities and related recognition of revenue, litigation strategy and prospects and expectations regarding enhancing shareholder value are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1943 and Section 27A of the Securities Act of 1933. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Unwired Planet assumes no obligation to update the forward-looking statements included in this press release. For a detailed discussion of these and other factors that may cause these forward looking statements not to come true, please refer to the risk factors discussed in Unwired Planet’s filings with the U.S.

 

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Unwired Planet Announces Financial Results

 

Securities and Exchange Commission (“SEC”), including the company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. These documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Unwired Planet’s website at www.unwiredplanet.com.

 

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Unwired Planet Announces Financial Results

 

UNWIRED PLANET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

Unaudited

 

     September 30,
2014
    June 30,
2014
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 73,777      $ 93,877   

Short-term investments

     38,078        40,068   

Restricted cash

     298        378   

Prepaid and other current assets

     925        666   
  

 

 

   

 

 

 

Total current assets

     113,078        134,989   

Property and equipment, net

     161        187   

Long-term investments

     3,710        11,745   

Initial direct license costs, net

     1,854        2,061   

Debt issuance costs and other assets, net

     1,403        1,459   
  

 

 

   

 

 

 

Total assets

   $ 120,206      $ 150,441   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 2,337      $ 1,181   

Fee share obligation

     —          12,850   

Deferred revenue

     5,005        5,005   

Accrued liabilities

     1,344        1,577   

Accrued legal expense

     3,649        4,054   

Accrued compensation and related costs

     1,920        605   

Accrued restructuring costs

     130        254   
  

 

 

   

 

 

 

Total current liabilities

     14,385        25,526   

Fee share obligation, net of current portion

     —          7,182   

Long-term note payable

     26,679        25,693   

Deferred revenue, net of current portion

     27,316        28,566   

Other long-term liabilities

     401        403   
  

 

 

   

 

 

 

Total liabilities

     68,781        87,370   
  

 

 

   

 

 

 

Stockholders’ equity

    

Preferred stock

     —          —     

Common stock

     112        111   

Treasury stock

     (76     (884

Additional paid-in-capital

     3,243,417        3,243,756   

Accumulated other comprehensive income

     26        24   

Accumulated deficit

     (3,192,054     (3,179,936
  

 

 

   

 

 

 

Total stockholders’ equity

     51,425        63,071   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 120,206      $ 150,441   
  

 

 

   

 

 

 

 

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Unwired Planet Announces Financial Results

 

UNWIRED PLANET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

Unaudited

 

     Three Months Ended
September 30,
    Three Months Ended
September 30,
 
     2014     2013  

Net revenue

   $ 1,251      $ —     

Operating costs and expenses:

    

Patent licensing expenses

     7,582        4,803   

General and administrative

     5,072        1,784   

Restructuring and other related costs

     2        —     
  

 

 

   

 

 

 

Total operating costs and expenses

     12,656        6,587   
  

 

 

   

 

 

 

Operating loss from continuing operations

     (11,405     (6,587

Interest income

     24        43   

Interest expense

     (1,017     (883

Other income (expense), net

     292        354   
  

 

 

   

 

 

 

Loss from continuing operations

     (12,106     (7,073
  

 

 

   

 

 

 

Discontinued operations:

    

Income (loss) from discontinued operations, net of tax

     (12     (113
  

 

 

   

 

 

 

Income (loss) from discontinued operations, net of tax

     (12     (113
  

 

 

   

 

 

 

Net loss

   $ (12,118   $ (7,186
  

 

 

   

 

 

 

Basic and diluted net loss per share from:

    

Continuing operations

   $ (0.11   $ (0.07

Discontinued operations

     0.00        0.00   
  

 

 

   

 

 

 

Net loss

   $ (0.11   $ (0.07
  

 

 

   

 

 

 

Weighted average shares outstanding basic and diluted

     111,724        102,144   
  

 

 

   

 

 

 

 

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Unwired Planet Announces Financial Results

 

UNWIRED PLANET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Unaudited

 

     Three Months Ended
September 30,
 
     2014     2013  

Cash flows from operating activities:

    

Net loss

   $ (12,118   $ (7,186

Adjustments to reconcile net loss to net cash provided in (used in) in operating activities:

    

Depreciation and amortization

     26        23   

Stock-based compensation

     467        445   

Non-cash restructuring charges

     2        6   

Amortization of premiums/discounts on investments, net

     27        16   

Realized loss on sale of investments

     —          115   

Gain on change in fair value of consultant incentive award obligation

     (295     (409

In kind interest payments on note payable

     914        796   

Amortization debt discount and issuance costs

     103        87   

Changes in operating assets and liabilities:

    

Accounts receivable

     —          88   

Initial licensing costs

     228        —     

Prepaid assets, deposits, and other assets

     (255     (90

Accounts payable

     1,156        (52

Fee share obligation

     (20,032     —     

Accrued liabilities

     970        (412

Deferred revenues

     (1,250     —     

Accrued restructuring costs

     (126     (176

Restricted cash

     80        17,251   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (30,103     10,502   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     —          (50

Purchases of investments

     —          (68,336

Proceeds from sales and maturities of investments

     10,000        7,643   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     10,000        (60,743
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from rights offering issuance of common stock

     —          12,500   

Proceeds from exercise of stock options

     79        107   

Payment of debt and equity issuance costs

     —          (284

Purchase of treasury stock

     (76     (70
  

 

 

   

 

 

 

Net cash provided by financing activities

     3        12,253   
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (20,100     (37,988

Cash and cash equivalents at beginning of period

     93,877        47,613   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 73,777      $ 9,625   
  

 

 

   

 

 

 

Non-cash financing activity

    
  

 

 

   

 

 

 

Retirement of treasury stock

   $ 884      $ —     
  

 

 

   

 

 

 

 

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Unwired Planet Announces Financial Results

 

For More Information:

Mike Bishop

The Blueshirt Group

mike@blueshirtgroup.com

Tel: 415-217-4968

 

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