Vringo Announces Third Quarter Results and Recent Highlights
Investor Conference Call Scheduled for 5:00pm Eastern Today
NEW YORK -- November 14, 2012
Vringo, Inc. (NYSE MKT: VRNG), a company engaged in the innovation,
development, and monetization of mobile technologies and intellectual
property, today announced operating results for the third quarter of 2012 and
"I am very pleased with the accomplishments of the third quarter and what we
have achieved so far in fourth quarter. In the less than five month period
since we closed our merger with Innovate/Protect, we have strengthened
Vringo's balance sheet, acquired multiple marquee patent portfolios, initiated
action against ZTE's UK subsidiary, continued to develop new technology and
intellectual property, and received a jury verdict in I/P Engine's against
Google, AOL and others. I am excited to continue to build on these
accomplishments and expand the company," said Andrew D. Perlman, Chief
Executive Officer of Vringo.
Third Quarter Highlights and Subsequent Events
*Completed merger with Innovate/Protect.
*Acquired over five hundred patents and patent applications relating to
*Acquired a portfolio of intellectual property from quantumStream Systems
Inc. and Sprout IP LLC relating to the placement of advertisements on web
pages via a bidding process.
*Filed nine provisional patent applications created by Ken Lang, President
and Chief Technology Officer of Vringo, covering a wide range of
*Continued to build on our existing patents by filing twelve continuations
and a continuation-in-part application in our telecom infrastructure
*Filed a patent infringement lawsuit in the United Kingdom against a
subsidiary of ZTE Corporation on three patents declared essential to
European Telecommunications and Standards Institute (ETSI). The complaint
accuses certain ZTE network products and ZTE GSM/UMTS multi-mode wireless
handsets of infringing our patents.
*Concluded a three-week jury trial in litigation against Google, AOL and
others in U.S. District Court, Eastern District of Virginia, Norfolk
Division, where the jury found that the asserted claims of the
patents-in-suit were both valid and infringed, and that reasonable royalty
damages should be based on a running royalty.
*Signed final agreement with Neomobile, a major mobile entertainment
service provider in Italy, for a launch of a jointly developed Android
subscription product before the end of 2012.
*Released updated versions of the Facetones product to add support for all
Android devices running on OS 4.0, known also as "Ice Cream Sandwich".
*Raised significant additional capital and repaid remaining non-operating
debt, thereby strengthening the company's balance sheet.
*As of the close of business on November 14, 2012, we had over $60 million
of cash on hand. We expect these funds will be sufficient to support our
current operations and allow timely execution of our current business
*Net loss for the third quarter was $3.1 million, mainly attributable to a
non-operating income of $7.2 million, recorded in connection with the
decrease in fair value of warrants, which are classified as a derivative
liability, as well as by the impact of non-cash share based compensation
expense of $5.4 million.
*In the third quarter of 2012, following the consummation of the merger, we
recorded total revenues of $266 thousand. The recognized revenue consisted
of: Vringo mobile-based product revenue of $76 thousand from the date of
the merger, through September 30, 2012, and revenue from a development
project of $90 thousand and proceeds from partial settlement of a
litigation, in the total amount of $100 thousand.
*On a per share basis, our net loss fell by 83% to a net loss of $0.06 per
basic share, compared to a loss of $0.36 per basic share, presented by
Vringo in the second quarter. The decrease in basic loss per share was
mostly due to an increase in the number of shares, and a decrease in the
fair value of warrants classified as a long-term derivative liability,
partly offset by increased costs reflecting the post-merger operations of
the combined company.
Conference Call Information
Date: Wednesday, November 14, 2012
Time: 5:00 p.m. Eastern (Vringo recommends dialing in ten minutes in advance)
Domestic: (888) 645-4404
International: (201) 604-0169
Replay (available shortly after conclusion): (888) 632-8973 or (201) 499-0429
Confirmation Code: 85174996#
About Vringo, Inc.
Vringo, Inc. is engaged in the innovation, development and monetization of
mobile technologies and intellectual property. Vringo's intellectual property
portfolio consists of over 500 patents and patent applications covering
telecom infrastructure, internet search, and mobile technologies. The patents
and patent applications have been developed internally, and acquired from
third parties. Vringo operates a global platform for the distribution of
mobile social applications and services including Facetones® and Video
Ringtones which transform the basic act of making and receiving mobile phone
calls into a highly visual, social experience. For more information, visit:
This press release includes forward-looking statements, which may be
identified by words such as "believes," "expects," "anticipates," "estimates,"
"projects," "intends," "should," "seeks," "future," "continue," or the
negative of such terms, or other comparable terminology. Forward-looking
statements are statements that are not historical facts. Such forward-looking
statements are subject to risks and uncertainties, which could cause actual
results to differ materially from the forward-looking statements contained
herein. Factors that could cause actual results to differ materially include,
but are not limited to: the inability to realize the potential value created
by the merger with Innovate/Protect for our stockholders; our inability to
raise additional capital to fund our combined operations and business plan;
our inability to monetize and recoup our investment with respect to patent
assets that we acquire; our inability to maintain the listing of our
securities on the NYSE MKT; the potential lack of market acceptance of our
products; our inability to protect our intellectual property rights; potential
competition from other providers and products; our inability to license and
monetize the patents owned by Innovate/Protect, including the outcome of the
litigation against online search firms and other companies; our inability to
monetize and recoup our investment with respect to patent assets that we
acquire; and other risks and uncertainties and other factors discussed from
time to time in our filings with the Securities and Exchange Commission
("SEC"), including our quarterly report on Form 10-Q filed with the SEC on
August 14, 2012. Vringo expressly disclaims any obligation to publicly update
any forward-looking statements contained herein, whether as a result of new
information, future events or otherwise, except as required by law.
Cliff Weinstein, 646-532-6777
Executive Vice President
The Hodges Partnership
Caroline L. Platt, 804-788-1414
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