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 firstname.lastname@example.org
Unwired Planet, Inc. Announces First Quarter 2013 Financial Results
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