Unwired Planet, Inc. Announces Second Quarter 2013 Financial Results

  Unwired Planet, Inc. Announces Second Quarter 2013 Financial Results

Business Wire

RENO, Nev. -- January 31, 2013

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

“Over the past year we have transformed the company into a premier
intellectual property firm. From our enforcement actions in Delaware and
Nevada, and our streamlined corporate structure in Reno, Nevada, to the
prospects of our recently announced patent deal with Ericsson, Unwired Planet
is poised to deliver on its IP model,” said Mike Mulica, Chief Executive
Officer of Unwired Planet. “This quarter we have also made additions to our
Board of Directors, which we believe will further strengthen the Company as we
seek to accelerate the pace on execution on our long-term strategy and
monetize the company’s significant assets.”

On a GAAP basis, net loss for the second fiscal quarter ended December 31,
2012 was $11.6 million, or $0.13 per share, compared with a net loss of $15.1
million, or $0.17 per share, in the prior quarter and with a net loss of $10.4
million, or $0.12 per share, in the December quarter of the preceding year.

On a non-GAAP basis, net loss for the first fiscal quarter ended December 31,
2012 was $6.1 million, or $0.07 per share, compared with a net loss of $8.1
million, or $0.09 per share, in the prior quarter and a net loss of $4.7
million, or $0.05 per share, in the December quarter of 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 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.

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 second quarter 2013 ended
December 31, 2012. Interested parties may access the conference call over the
Internet through Unwired Planet’s website at www.unwiredplanet.com or by
telephone at 888-846-5003 or 480-629-9856 (international). A replay of the
conference call will be available for three weeks (untilFebruary 21),
beginning at5:00 p.m. PTonJanuary 31by calling 800-406-7325. The replay
can be accessed internationally by calling 303-590-3030, access code:
4592391#.

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)
        
                                                     December 31,     June 30,
                                                     2012             2012
Assets
    Current Assets:
        Cash and cash equivalents                    $   24,615       $ 39,709
        Short-term investments                           32,669         43,860
        Restricted cash and investments                  675            -
        Prepaid and other current assets                1,552         3,960
          Total current assets                           59,511         87,529
                                                                      
    Property and equipment, net                          135            452
    Long-term investments                                4,548          9,423
    Deposits and other assets                           89            89
          Total assets                               $   64,283       $ 97,493
                                                                      
Liabilities and Stockholders' Equity
    Current Liabilities:
        Accounts payable                             $   5,967        $ 6,088
        Accrued liabilities                              5,402          8,119
        Accrued restructuring costs                     7,298         12,871
          Total current liabilities                      18,667         27,078
                                                                      
    Accrued restructuring costs, less current            512            827
    portion
    Long-term taxes payable and other                   633           959
          Total liabilities                              19,812         28,864
                                                                      
    Stockholders' equity                                44,471        68,629
          Total liabilities and stockholders'        $   64,283       $ 97,493
          equity
                                                                      
                                                                      

UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
                                                                   
                                                                           
                   Three Months Ended                        Six Months Ended
                   December      September     December      December      December
                   31,           30,           31,           31,           31,
                   2012          2012          2011          2012          2011
Revenues:
  Patents          $ 3          $ 3          $ 5          $ 6          $ 15,026 
    Total           3           3           5           6           15,026 
    revenues
                                                                           
Operating
Expenses:
  Sales and
  marketing          -             78            -             78            375
  expenses
  Patent
  initiative         3,156         5,559         3,272         8,715         4,996
  expenses
  General and        4,350         3,791         1,212         8,141         2,898
  administrative
  Restructuring
  and other         1,349       457         1,784       1,806       2,335  
  related costs
    Total
    operating       8,855       9,885       6,268       18,740      10,604 
    expenses
                                                                           
Operating income
(loss) from          (8,852  )     (9,882  )     (6,263  )     (18,734 )     4,422
continuing
operations
Interest and
other income        39          50          (309    )    89          (247   )
(expense), net
    Net income
    (loss) from      (8,813  )     (9,832  )     (6,572  )     (18,645 )     4,175
    continuing
    operations
Income taxes        -           -           2,501       -           2,501  
    Net income
    (loss) from      (8,813  )     (9,832  )     (9,073  )     (18,645 )     1,674
    continuing
    operations
                                                                           
Loss on sale of
discontinued         -             (750    )     -             (750    )     -
operation
Discontinued        (2,797  )    (4,528  )    (1,317  )    (7,325  )    (9,423 )
operations, net
Net loss           $ (11,610 )   $ (15,110 )   $ (10,390 )   $ (26,720 )   $ (7,749 )
                                                                           
Basic and
diluted net
income (loss)
per share from:
    Continuing     $ (0.10   )   $ (0.11   )   $ (0.11   )   $ (0.21   )   $ 0.02
    operations
    Discontinued   $ (0.03   )    (0.06   )    (0.01   )    (0.09   )    (0.11  )
    operations
    Net income
    loss per       $ (0.13   )   $ (0.17   )   $ (0.12   )   $ (0.30   )   $ (0.09  )
    share
                                                                           
Shares used in
basic and
diluted net          90,323        89,971        85,594        90,147        85,538
income (loss )
per share
                                                                           
Stock-based
compensation by
category:
  Sales and        $ -           $ 1           $ -           $ 1           $ -
  marketing
  General and        298           435           133           733           267
  administrative
  Discontinued      489         73          501         562         952    
  operations
                   $ 787        $ 509        $ 634        $ 1,296      $ 1,219  
                                                                           
                                                                           

UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(In thousands, except per share data)
                                                                   
                  Three Months Ended                        Six Months Ended
                  December      September     December      December      December
                  31,           30,           31,           31,           31,
                  2012          2012          2011          2012          2011
                                                                          
Reconciliation
between GAAP
and Non-GAAP
net income
(loss):
Net loss          $ (11,610 )   $ (15,110 )   $ (10,390 )   $ (26,720 )   $ (7,749 )
Exclude:
  Restructuring     1,349         457           1,784         1,806         2,335
  costs
  Stock-based       298           436           133           734           267
  compensation
  Strategic         1,094         886           -             1,980         -
  costs
  Discontinued
  operations,       2,797         5,278         1,317         8,075         9,423
  net of tax
  Tax impact
  related to       -           -           2,501       -           2,501  
  unusual
  transactions
Non-GAAP net      $ (6,072  )   $ (8,053  )   $ (4,655  )   $ (14,125 )   $ 6,777  
income (loss)
                                                                          
GAAP net loss     $ (0.13   )   $ (0.17   )   $ (0.12   )   $ (0.30   )   $ (0.09  )
per share
Exclude:
  Restructuring   $ 0.02        $ 0.01        $ 0.02        $ 0.02        $ 0.03
  costs
  Stock-based     $ -           $ -           $ -           $ 0.01        $ -
  compensation
  Strategic       $ 0.01        $ 0.01        $ -           $ 0.02        $ -
  costs
  Discontinued
  operations,     $ 0.03        $ 0.06        $ 0.02        $ 0.09        $ 0.11
  net of tax
  Tax impact
  related to      $ -          $ -          $ 0.03       $ -          $ 0.03   
  unusual
  transactions
Non-GAAP net
income (loss)     $ (0.07   )   $ (0.09   )   $ (0.05   )   $ (0.16   )   $ 0.08   
per share
                                                                          
Shares used in
computing net
income (loss)
per share:
  GAAP              90,323        89,971        85,594        90,147        85,538
  Non-GAAP          90,323        89,971        85,594        90,147        86,379
                                                                                   
                                                                                   

UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
                                                                     
                                                                              
                      Three Months Ended                        Six Months Ended
                      December      September     December      December      December
                      31,           30,           31,           31,           31,
                       2012        2012        2011        2012        2011    
Operating
activities:
   Net loss           $ (11,610 )   $ (15,110 )   $ (10,390 )   $ (26,720 )   $ (7,749  )
   Loss/(gain) on
   sale of              -             750           -             750           -
   discontinued
   operation
   Reconciling
   items:
      Depreciation,
      amortization
      of
      intangibles       886           653           1,810         1,539         3,967
      and
      stock-based
      compensation
      Non-cash
      restructuring     71            100           187           171           399
      charges
      Accelerated
      depreciation
      on                226           -             -             226           -
      restructured
      property and
      equipment
      Recovery of
      doubtful          -             -             270           -             467
      accounts
      Other
      non-cash          237           300           264           537           571
      items, net
      Restricted        (675    )     -                           (675    )     -
      cash
      Changes in
      operating        (4,374  )    (1,527  )    11,135      (5,901  )    (11,833 )
      assets and
      liabilities
                                                                              
         Net cash
         used for      (15,239 )    (14,834 )    3,276       (30,073 )    (14,178 )
         operating
         activities
                                                                              
Investing
activities:
   Purchases of
   property and         74            -             (141    )     74            (530    )
   equipment, net
   Payment of
   settlement
   related to           -             -             -             -             (12,000 )
   discontinued
   operation
   Sale of
   discontinued         -             (1,893  )     -             (1,893  )     -
   operation, net
   Proceeds from
   sales and           8,634       6,886       6,760       15,520      13,200  
   maturities of
   investments, net
                                                                              
         Net cash
         provided
         by            8,708       4,993       6,619       13,701      670     
         investing
         activities
                                                                              
Financing
activities:
   Net proceeds
   from issuance of    7           1,271       175         1,278       294     
   common stock
                                                                              
         Cash
         provided
         by            7           1,271       175         1,278       294     
         financing
         activities
Net
increase/(decrease)     (6,524  )     (8,570  )     10,070        (15,094 )     (13,214 )
in cash and cash
equivalents
Cash and cash
equivalents at         31,139      39,709      23,982      39,709      47,266  
beginning of period
Cash and cash
equivalents at end
of period,            $ 24,615     $ 31,139     $ 34,052     $ 24,615     $ 34,052  
including
discontinued
operations

Contact:

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