Unwired Planet, Inc. Announces First Quarter 2013 Financial Results

  Unwired Planet, Inc. Announces First Quarter 2013 Financial Results

Business Wire

RENO, Nev. -- November 07, 2012

Unwired Planet, Inc. (UPIP), today announced financial results for the first
quarter 2013.

“Having completed our transformation, we find ourselves laser focused on our
IP portfolio monetization efforts. We can now ‘lean forward’ with a highly
cash efficient and effective platform for Unwired Planet going forward. Our
legacy business distractions are now behind us and the critical operational
changes we have implemented, including moving our headquarters to Reno,
Nevada, bolstering our board, and taking decisive action in our legal
complaints, creating a strong foundation for our future. I am confident we
have created a platform and model that will yield a return for shareholders
that reflects the value our foundational IP portfolio deserves,” said Mike
Mulica, Chief Executive Officer of Unwired Planet.

On a GAAP basis, net loss for the first fiscal quarter ended September 30,
2012 was $15.1 million or $0.17 per share, compared with a net income of $31.9
million, or $0.36 per share, in the prior quarter and net income of $2.6
million, or $0.03 per share, in the September quarter in the preceding year.
Restructuring costs in the quarter were $0.5 million.

On a non-GAAP basis, net loss for the first fiscal quarter ended September 30,
2012 was $8.1 million, or $0.09 per share, compared with a net loss of $6.3
million, or $0.07 per share, in the prior quarter and a net income of $11.4
million, or $0.13 per share, in the September quarter in the preceding year.
Non-GAAP net loss excludes restructuring, stock-based compensation, strategic
costs, discontinued operations and the tax impact of these items.

A reconciliation between net income (loss) and net income (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.

Non-GAAP Measure

The Company’s stated results include the non-GAAP measures: non-GAAP net
income (loss) and non-GAAP net income (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 net income (loss)
to be an important measure 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.

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 2013 ended
September 30, 2012. Interested parties may access the conference call over the
Internet through Unwired Planet’s website at www.unwiredplanet.com or by
telephone at (877) 941-4776 or (480) 629-9714 (international). A replay of the
conference call will be available for three weeks (until November 28),
beginning at 5:00 p.m. PT on November 7 by calling (800) 406-7325. The replay
can be accessed internationally by calling (303) 590-3030, access code:
4574427 #.

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.unwiredplant.com/investors. A replay will be available on the
website for at least three months.

About Unwired Planet

Unwired Planet (NASDAQ: UPIP) is the inventor of the mobile internet. Unwired
Planet established many of the foundational patents that allow mobile devices
to connect to the Internet. Over the years, the company has amassed a patent
portfolio of approximately 200 issued US and foreign patents and approximately
75 pending applications, many of which are considered foundational to mobile
communications, and span smart devices, cloud technologies and unified
messaging.

Cautionary Note Regarding Forward Looking Statements

The statements in this press release in Mr. Mulica’s quote with respect to
future events or expectations 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, 2012. 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,
                                                      2012            2012
Assets
   Current Assets:
      Cash, cash equivalents and short-term       $    69,975         $ 83,569
      investments
      Prepaid and other current assets                2,767           3,960
         Total current assets                          72,742           87,529
                                                                      
   Property and equipment, net                         460              452
   Long-term investments                               7,305            9,423
   Deposits and other assets                          89              89
         Total assets                             $    80,596         $ 97,493
                                                                      
Liabilities and Stockholders' Equity
   Current Liabilities:
      Accounts payable                            $    7,988          $ 6,088
      Accrued liabilities                              6,446            8,119
      Accrued restructuring costs                     9,442           12,871
         Total current liabilities                     23,876           27,078
                                                                      
   Accrued restructuring costs, less                   659              827
   current portion
   Long-term taxes payable and other                  719             959
         Total liabilities                             25,254           28,864
                                                                      
   Stockholders' equity                               55,342          68,629
         Total liabilities and                    $    80,596         $ 97,493
         stockholders' equity
                                                                      


UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
                                                        
                                                                   
                                  Three Months Ended
                                  
                                  September          June 30,      September
                                  30,                              30,
                                    2012             2012          2011
Revenues:
    Patents                       $  3               $ 4           $  15,021
        Total revenues              3                4             15,021
                                                                   
Operating Expenses:
    Sales and marketing              78                239            375
    expenses
    Patent initiative                5,559             4,623          1,724
    expenses
    General and                      3,791             2,527          1,686
    administrative
    Restructuring and               457              190           551
    other related costs
        Total operating             9,885            7,579         4,336
        expenses
                                                                   
Operating income (loss)
from continuing                      (9,882)           (7,575)        10,685
operations
Interest and other income           50               (258)         62
(expense), net
        Net income (loss)
        from continuing              (9,832)           (7,833)        10,747
        operations
Income taxes                        -                (3,790)       -
        Net income (loss)
        from continuing              (9,832)           (4,043)        10,747
        operations
                                                                   
Gain (loss) on sale of               (750)             45,133         -
discontinued operation
Discontinued operations,            (4,528)          (9,237)       (8,106)
net
Net income (loss)                 $  (15,110)        $ 31,853      $  2,641
                                                                   
                                                                   
Basic net income (loss)
per share from:
        Continuing                $  (0.11)          $ (0.05)      $  0.12
        operations
        Discontinued                (0.06)           0.41          (0.09)
        operations
        Net income (loss)         $  (0.17)          $ 0.36        $  0.03
        per share
                                                                   
Diluted net income (loss)
per share from:
        Continuing                $  (0.11)          $ (0.05)      $  0.12
        operations
        Discontinued                (0.06)           0.41          (0.09)
        operations
        Net income (loss)         $  (0.17)          $ 0.36        $  0.03
        per share
                                                                   
Shares used in basic net             89,971            88,200         85,482
income (loss) per share
                                                                   
Shares used in diluted
net income (loss) per                89,971            88,200         86,432
share
                                                                   
Stock-based compensation
by category:
    Sales and marketing           $  1               $ 15          $  -
    Patent initiative                -                 43             -
    General and                      435               613            134
    administrative
    Discontinued                    73               3,554         451
    operations
                                  $  509             $ 4,225       $  585
                                                                   

                          
UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(In thousands, except per share data)
                                                            
                              Three Months Ended
                              September 30,       June 30,          September
                                                                    30,
                                2012             2012             2011
                                                                    
Reconciliation between
GAAP and Non-GAAP net
income (loss):
Net income (loss)             $  (15,110  )       $ 31,853          $  2,641
Exclude:
    Restructuring costs          457                190                551
    Stock-based                  436                671                134
    compensation
    Strategic costs              886                676                -
    Discontinued
    operations, net of           5,278              (35,896 )          8,106
    tax
    Tax impact related
    to unusual                  -                (3,790  )         -
    transactions
Non-GAAP net income           $  (8,053   )       $ (6,296  )       $  11,432
(loss)
                                                                    
GAAP net income (loss)        $  (0.17    )       $ 0.36            $  0.03
per share
Exclude:
    Restructuring costs       $  0.01             $ -               $  0.01
    Stock-based               $  -                $ 0.01            $  -
    compensation
    Strategic costs           $  0.01             $ 0.01            $  -
    Discontinued
    operations, net of        $  0.06             $ (0.41   )       $  0.09
    tax
    Tax impact related
    to unusual                $  -               $ (0.04   )       $  -
    transactions
Non-GAAP net income           $  (0.09    )       $ (0.07   )       $  0.13
(loss) per share
                                                                    
Shares used in
computing net income
(loss) per share:
    GAAP                         89,971             88,200             85,482
    Non-GAAP                     89,971             88,200             86,432
                                                                    


UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
                                                        
                                                                 
                           Three Months Ended
                             September 30,       June 30,        September 30,
                               2012            2012           2011     
Operating activities:
    Net income (loss)        $  (15,110  )       $ 31,853        $  2,641
    Loss/(gain) on sale
    of discontinued             750                (45,133 )        -
    operation
    Reconciling items:
       Depreciation,
       amortization of
       intangibles and          653                4,626            2,157
       stock-based
       compensation
       Non-cash
       restructuring            100                131              212
       charges
       Non-cash tax             -                  (3,790  )        -
       benefits
       Recovery of              -                  38               197
       doubtful accounts
       Other non-cash           300                534              307
       items, net
       Changes in
       operating assets        (1,527   )       (8,676  )       (22,968  )
       and liabilities
                                                                 
            Net cash
            used for           (14,834  )       (20,417 )       (17,454  )
            operating
            activities
                                                                 
Investing activities:
    Purchases of
    property and                -                  -                (389     )
    equipment, net
    Payment of
    settlement related          -                  -                (12,000  )
    to discontinued
    operation
    Sale of discontinued        (1,893   )         46,238           -
    operation, net
    Proceeds from sales
    and maturities of          6,886           (15,031 )       6,440    
    investments, net
                                                                 
            Net cash
            provided by
            (used by)          4,993           31,207         (5,949   )
            investing
            activities
                                                                 
Financing activities:
    Net proceeds from
    issuance of common         1,271           1,093          119      
    stock
                                                                 
            Cash
            provided by        1,271           1,093          119      
            financing
            activities
Net increase/(decrease)
in cash and cash                (8,570   )         11,883           (23,284  )
equivalents
Cash and cash
equivalents at beginning       39,709          27,826         47,266   
of period
Cash and cash
equivalents at end of        $  31,139         $ 39,709       $  23,982   
period, including
discontinued operations

Contact:

The Blueshirt Group
Mike Bishop, 415-217-4968
mike@blueshirtgroup.com
 
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