Unwired Planet, Inc. Announces First Quarter Fiscal 2014 Financial Results

Unwired Planet, Inc. (UPIP) today announced financial results for the first quarter of fiscal year 2014.

“We continue to aggressively pursue licensing opportunities while managing our operating costs,” said Eric Vetter, president and chief administrative officer of Unwired Planet. “We have created an optimized partnership with some of the leading intellectual property law firms to cost efficiently drive our patent protection initiatives.”

On a GAAP basis, net loss for first fiscal quarter ended September 30, 2013 was $7.2 million, or $0.07 per share, compared with a net loss of $8.7 million, or $0.09 per share, in the prior quarter, and with a net loss of $15.1 million, or $0.17 per share, in the September quarter of the preceding year.

On a non-GAAP basis, net loss for the first fiscal quarter ended September 30, 2013 was $6.6 million, or $0.06 per share, compared with a net loss of $6.5 million, or $0.07 per share, in the prior quarter, and with a net loss of $8.1 million, or $0.09 per share, in the September quarter of the preceding year. Non-GAAP net loss excludes restructuring, stock-based compensation, strategic and post-strategic costs, discontinued operations, and the tax impact of these items.

A reconciliation between net loss and net loss per share on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

Conference Call Information

Unwired Planet has scheduled a conference call for 5:00 p.m. eastern daylight time today to discuss its financial results for its first quarter fiscal 2014. Interested parties may access the conference call over the Internet through the company's website at www.unwiredplanet.com or by telephone at 877-941-4774 or 480-629-9760 (international). A replay of the conference call will be available until November 28, 2013, beginning at 5:00 p.m. PT on October 31, 2013 by calling 800-406-7325. The replay can be accessed internationally by calling 303-590-3030, access code: 4644552#.

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 2,450 issued and pending US 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 technology, maps and location based services, mobile application stores, social networking, mobile gaming, and mobile search. Unwired Planet is headquartered in Reno, Nevada.

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 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. Securities and Exchange Commission ("SEC"), including the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013. 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.
 
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED
(In thousands)
 
      September 30,       June 30,
  2013     2013  
 

ASSETS
 
Current assets:
Cash and cash equivalents $ 9,625 $ 47,613
Short-term investments 39,532 10,793
Restricted cash and investments - 17,251
Accounts receivable - 88
Prepaid and other current assets   490     420  
Total current assets 49,647 76,165
 

Property and equipment, net of accumulated depreciation of $116 and $93
240 212
Long-term investments 31,814 -
Deposits and other assets   1,854     1,861  
Total assets $ 83,555   $ 78,238  
 

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities:
Accounts payable $ 3,354 $ 2,317
Accrued liabilities 2,130 2,817
Accrued legal expense 2,802 3,686
Accrued compensation 860 1,057
Accrued restructuring costs   544     594  
Total current liabilities 9,690 10,471
Accrued restructuring costs, net of current portion 138 259

Long-term note payable
22,952 22,096

Other long-term liabilities
  1,478     1,485  
Total liabilities   34,258     34,311  
 
Stockholders’ equity:
Common stock 108 100
Treasury stock (645 ) (575 )
Additional paid-in capital 3,237,397 3,224,769
Accumulated other comprehensive income (loss) (8 ) 2
Accumulated deficit   (3,187,555 )   (3,180,369 )
Total stockholders’ equity   49,297     43,927  
Total liabilities and stockholders' equity $ 83,555   $ 78,238  
 
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
                 
Three Months Ended
September 30, June 30, September 30,
  2013     2013     2012  
 
Revenue:
License Fees $ - $ 106 $ 3
Fee Share   -     (21 )   -  
Net revenue   -     85     3  
 
Operating costs and expenses:
Sales and marketing expense - 27 78
Patent licensing expenses 4,803 4,705 5,559
General and administrative 1,784 4,960 3,791
Restructuring and other related costs   -     (77 )   457  
Total operating costs and expenses   6,587     9,615     9,885  

Operating loss
(6,587 ) (9,530 ) (9,882 )
 
Interest income 43 16 78
Interest expense (883 ) (31 ) (3 )
Other income (expense), net   354     823     (25 )

Net loss from continuing operations
  (7,073 )   (8,722 )   (9,832 )
Income tax   -     42     -  
Net loss from continuing operations   (7,073 )   (8,764 )   (9,832 )
 
Discontinued operations:
Loss on sale of discontinued operations - - (750 )
Discontinued operations, net of tax   (113 )   55     (4,528 )
Loss from discontinued operations (113 ) 55 (5,278 )
     
Net loss $ (7,186 ) $ (8,709 ) $ (15,110 )
 
Basic and diluted net loss per share from:
Continuing operations $ (0.07 ) $

(0.09
) $ (0.11 )
Discontinued operations $ -   $ -   $ (0.06 )
Net loss per share $ (0.07 ) $

(0.09
) $ (0.17 )
 
Weighted average shares outstanding - basic and diluted 102,144 92,078 89,971
 
 
Stock-based compensation by category:
Sales and marketing $ - $ - $ 1
Patent initiative 285 261 -
General and administrative 160 1,742 435
Discontinued operations   -     -     73  
$ 445   $ 2,003   $ 509  
     
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
       
Three Months Ended
September 30, June 30, September 30,
  2013     2013     2012  
Cash flows from operating activities:
Net loss $ (7,186 ) $ (8,709 ) $ (15,110 )
Loss on sale of discontinued operations - - 750
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation
23 20 144
Stock-based compensation 445 2,003 509
Non-cash restructuring charges 6 12 100
Amortization of premiums/discounts on investments, net 16 69 300
Gain on change in fair value of consultant incentive award obligation (409 ) - -
Realized loss on sale of investments 115 - -
In-kind interest payments on note payable 796 27 -
Amortization of debt discount and issuance costs 87 2 -
Changes in operating assets and liabilities:
Accounts receivable 88 (88 ) -
Prepaid assets, deposits, and other assets (90 ) 1,165 1,193
Accounts payable (52 ) (388 ) 2,536
Accrued liabilities (412 ) (275 ) (1,559 )
Accrued restructuring costs (176 ) (2,360 ) (3,697 )

Restricted cash
  17,251     898     -  
Net cash provided by (used in) operating activities   10,502     (7,624 )   (14,834 )
 
Cash flows from investing activities:
Purchases of property and equipment (50 ) (232 ) -
Payments to vendors related to the sale of discontinued operations - - (1,893 )
Purchases of short-term investments (29,854 ) - (4,361 )
Proceeds from sales and maturities of investments 7,643 10,776 12,195
Purchases of long-term investments   (38,482 )   -     (948 )
Net cash provided by (used in) investing activities   (60,743 )   10,544     4,993  
 
Cash flows from financing activities:
Net proceeds from note payable - 22,066 -
Net proceeds from registered direct issuance of common stock - 14,785 -

Proceeds from rights offering issuance of common stock
12,500 - -
Proceeds from issuance of common stock 107 175 1,271
Registered direct offering costs (284 ) - -
Purchase of treasury stock   (70 )   (575 )   -  
Net cash provided by financing activities   12,253     36,451     1,271  
 
Net increase (decrease) in cash and cash equivalents (37,988 ) 39,371 (8,570 )
Cash and cash equivalents at beginning of period   47,613     8,242     39,709  
Cash and cash equivalents at end of period $ 9,625   $ 47,613   $ 31,139  

Non-GAAP Measure

The Company’s stated results include the non-GAAP measures: non-GAAP net loss and non-GAAP net loss per share. These non-GAAP measures exclude certain items that generally are non-recurring events or are non-cash items that many other companies exclude, in order to compare Unwired Planet with other companies, such as stock-based compensation. These non-GAAP measures also exclude items which management does not consider in evaluating Unwired Planet’s on-going business, such as restructuring costs and discontinued operations. Unwired Planet considers non-GAAP loss to be an important metric because it provides a useful measure of the operational performance of Unwired Planet and is used by Unwired Planet's management for that purpose. In addition, investors often use measures such as these to evaluate the financial performance of a company. These non-GAAP measures are presented for supplemental informational purposes only for understanding Unwired Planet's operating results. These non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.
 
UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS-UNAUDITED
(In thousands, except per share data)
                   
Three Months Ended
September 30, June 30, September 30,
  2013     2013     2012  
 
Reconciliation between GAAP and Non-GAAP net loss:
Net loss $ (7,186 ) $ (8,709 ) $ (15,110 )
Exclude:
Restructuring costs - (77 ) 457
Stock-based compensation 445 2,003 436
Strategic costs - - 886
Post strategic costs - 377 -
Discontinued operations, net of tax   113     (55 )   5,278  
Non-GAAP net loss $ (6,628 ) $ (6,461 ) $ (8,053 )
 
GAAP net loss per share $ (0.07 ) $

(0.09
) $ (0.17 )
Exclude:
Restructuring costs $ - $ - $ 0.01
Stock-based compensation $ - $

0.02
$ -
Strategic costs $ - $ - $ 0.01
Post strategic costs $ - $ - $ -
Discontinued operations, net of tax $ -   $ -   $ 0.06  
Non-GAAP net loss per share $ (0.06 ) $ (0.07 ) $ (0.09 )
 
Shares used in computing net loss per share:
GAAP 102,144 92,078 89,971
Non-GAAP 102,144 92,078 89,971

Copyright Business Wire 2010

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