Unwired Planet, Inc. Announces Third Quarter 2013 Financial Results

  Unwired Planet, Inc. Announces Third Quarter 2013 Financial Results

Business Wire

RENO, Nev. -- May 09, 2013

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

“This has been a transformational quarter for Unwired Planet,” said Mike
Mulica, chief executive officer of Unwired Planet. “We are now executing a
completely focused licensing strategy as a long-term industry platform for the
realization of our intellectual property value across 2G, 3G, 4G technologies
as well as cloud-based mobile applications and services. With the completion
of the patent transaction with Ericsson, we have begun actively engaging
priority licensing targets and are working closely with our partners to
proceed in the most efficient way to enhance shareholder value.”

On a GAAP basis, net loss for the third fiscal quarter ended March 31, 2013
was $12.2 million, or $0.13 per share, compared with a net loss of $11.6
million, or $0.13 per share, in the prior quarter, and with a net loss of $9.5
million, or $0.11 per share, in the March quarter of the preceding year.

On a non-GAAP basis, net loss for the third fiscal quarter ended March 31,
2013 was $5.8 million, or $0.06 per share, compared with a net loss of $6.1
million, or $0.07 per share, in the prior quarter and a net loss of $4.7
million, or $0.05 per share, in the March 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.

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 third quarter 2013.
Interested parties may access the conference call over the Internet through
the company's website at www.unwiredplanet.com or by telephone at 877-941-4775
or 480-629-9761 (international). A replay of the conference call will be
available for three weeks (May 30, 2013), beginning at 5:00 p.m. PT on May 9,
2013 by calling 800-406-7325. The replay can be accessed internationally by
calling 303-590-3030, access code: 4619468#.

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, 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 more than 2,400 issued 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'sportfolio 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 Planetis 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, 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)

                                                   March 31,  June 30,
                                                    2013        2012
Assets
Current Assets:
Cash and cash equivalents                           $  8,242    $ 39,709
Short-term investments                                 20,522     43,860
Restricted cash and investments                        18,657     -
Prepaid and other current assets                      1,593     3,960
Total current assets                                   49,014     87,529
                                                                
Property and equipment, net                            227        452
Long-term investments                                  1,123      9,423
Deposits and other assets                             80        89
Total assets                                        $  50,444   $ 97,493
                                                                
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                                    $  2,693    $ 6,088
Accrued liabilities                                    6,471      8,119
Accrued restructuring costs                           3,049     12,871
Total current liabilities                             12,213    27,078
                                                                
Accrued restructuring costs, less current portion      378        827
Long-term taxes payable and other                     1,340     959
Total liabilities                                      13,931     28,864
                                                                
Stockholders' equity                                  36,513    68,629
Total liabilities and stockholders' equity          $  50,444   $ 97,493

UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
                                                                  
                                                                       
                Three Months Ended                       Nine Months Ended
                March 31,     December      March 31,    March 31,     March 31,
                              31,
                2013          2012          2012         2013          2012
Revenues:
Patents         $ 30         $ 3          $ 20        $ 36         $ 15,046  
Total revenues   30          3           20         36          15,046  
                                                                       
Operating
Expenses:
Sales and
marketing       $ 4             -             -            82            375
expenses
Patent
initiative      $ 2,861         3,156         3,470        11,576        8,466
expenses
General and       8,350         4,350         2,157        16,491        5,217
administrative
Restructuring
and other         42            1,349         141          1,848         1,858
related costs
                                                                  
Total
operating        11,257      8,855       5,768      29,997      15,916  
expenses
                                                                       
Operating loss
from              (11,227 )     (8,852  )     (5,748 )     (29,961 )     (870    )
continuing
operations
Interest and
other income     (1,043  )    39          36         (954    )    (211    )
(expense), net
Net loss from
continuing        (12,270 )     (8,813  )     (5,712 )     (30,915 )     (1,081  )
operations
Income taxes     -           -           -          -           -       
Net income
(loss) from       (12,270 )     (8,813  )     (5,712 )     (30,915 )     (1,081  )
continuing
operations
                                                                       
Gain (Loss) on
sale of           600           -             5,161        (150    )     5,161
discontinued
operation
Discontinued
operations,      (514    )    (2,797  )    (8,986 )    (7,839  )    (21,366 )
net
Net loss        $ (12,184 )   $ (11,610 )   $ (9,537 )   $ (38,904 )   $ (17,286 )
                                                                       
                                                                       
Basic and
diluted net
loss per share
from:
Continuing      $ (0.13   )   $ (0.10   )   $ (0.07  )   $ (0.34   )   $ (0.01   )
operations
Discontinued    $ -           (0.03   )    (0.04  )    (0.09   )    (0.19   )
operations
Net income      $ (0.13   )   $ (0.13   )   $ (0.11  )   $ (0.43   )   $ (0.20   )
loss per share
                                                                       
Shares used in
basic and         91,018        90,323        86,146       90,426        85,740
diluted net
loss per share
                                                                       
Shares used in
diluted net       91,018        90,323        86,146       90,426        85,740
loss per share
                                                                       
Stock-based
compensation
by category:
Sales and       $ -           $ -           $ -          $ 1           $ -
marketing
General and       4,414         298           894          5,147         1,161
administrative
Discontinued     62          489         -          624         -       
operations
Total stock
based           $ 4,476      $ 787        $ 894       $ 5,772      $ 1,161   
compensaton

UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
                                                                 
                                                                       
                Three Months Ended                       Nine Months Ended
                March 31,     December      March 31,    March 31,     March 31,
                              31,
                2013          2012          2012         2013          2012
Operating
activities:
Net loss        $ (12,184 )   $ (11,610 )   $ (9,537 )   $ (38,904 )   $ (17,286 )
Loss/(gain)
on sale of        (600    )     -             (5,161 )     150           (5,161  )
discontinued
operation
Reconciling
items:
Depreciation,
amortization
of
intangibles       4,495         886           3,857        6,034         7,790
and
stock-based
compensation
Non-cash
restructuring     42            71            161          213           560
charges
Accelerated
depreciation
on                -             226           -            226           -
restructured
property and
equipment
Recovery of
doubtful          -             -             (58    )     -             409
accounts
Other
non-cash          1,240         237           208          1,778         779
items, net
Restricted        (17,982 )     (675    )     -            (18,657 )     -
cash
Changes in
operating        (7,260  )    (4,374  )    1,529      (13,160 )    (10,302 )
assets and
liabilities
                                                                       
Net cash used
for operating    (32,249 )    (15,239 )    (9,001 )    (62,320 )    (23,211 )
activities
                                                               
Investing
activities:
Purchases of
property and      (111    )     74            (27    )     (37     )     (523    )
equipment,
net
Payment of
settlement
related to                      -             -            -             (12,000 )
discontinued
operation
Sale of
discontinued      600           -             5,161        (1,293  )     5,161
operation,
net
Proceeds from
sales and
maturities of    15,133      8,634       (2,876 )    30,651      10,322  
investments,
net
                                                                       
Net cash
provided by      15,622      8,708       2,258      29,321      2,960   
investing
activities
                                                                       
Financing
activities:
Net proceeds
from issuance    254         7           517        1,532       811     
of common
stock
                                                                       
Cash provided
by financing     254         7           517        1,532       811     
activities
Net decrease
in cash and       (16,373 )     (6,524  )     (6,226 )     (31,467 )     (19,440 )
cash
equivalents
Cash and cash
equivalents      24,615      31,139      34,052     39,709      47,266  
at beginning
of period
Cash and cash
equivalents
at end of
period,         $ 8,242      $ 24,615     $ 27,826    $ 8,242      $ 27,826  
including
discontinued
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.

UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(In thousands, except per share data)
                                                                  
                 Three Months Ended                       Nine Months Ended
                 March 31,     December      March 31,    March 31,     March 31,
                               31,
                 2013          2012          2012         2013          2012
                                                                        
Reconciliation
between GAAP
and Non-GAAP
net loss:
Net loss         $ (12,184 )   $ (11,610 )   $ (9,537 )   $ (38,904 )   $ (17,286 )
Exclude:
Restructuring      42            1,349         141          1,848         1,858
costs
Stock-based        4,414         298           894          5,148         1,161
compensation
Strategic          897           1,094         -            2,877         -
costs
Post strategic     1,073         -             -            1,073         -
costs
Discontinued
operations,       (86     )    2,797       3,825      7,989       16,205  
net of tax
Non-GAAP net     $ (5,844  )   $ (6,072  )   $ (4,677 )   $ (19,969 )   $ 1,938   
income (loss)
                                                                        
GAAP net loss    $ (0.13   )   $ (0.13   )   $ (0.11  )   $ (0.43   )   $ (0.20   )
per share
Exclude:
Restructuring    $ -           $ 0.02        $ -          $ 0.02        $ 0.02
costs
Stock-based      $ 0.06        $ -           $ 0.01       $ 0.06        $ 0.01
compensation
Strategic        $ 0.01        $ 0.01        $ -          $ 0.03        $ -
costs
Discontinued
operations,      $ -          $ 0.03       $ 0.05      $ 0.09       $ 0.19    
net of tax
Non-GAAP net
income (loss)    $ (0.06   )   $ (0.07   )   $ (0.05  )   $ (0.22   )   $ 0.02    
per share
                                                                        
Shares used in
computing net
income (loss)
per share:
GAAP               91,018        90,323        86,146       90,426        85,740
Non-GAAP           91,018        90,323        86,146       90,426        85,740

Contact:

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