Unwired Planet, Inc. Announces Fourth Quarter and Fiscal End 2013 Financial Results

  Unwired Planet, Inc. Announces Fourth Quarter and Fiscal End 2013 Financial
  Results

Business Wire

RENO, Nev. -- August 15, 2013

Unwired Planet, Inc. (UPIP) today announced financial results for the fourth
quarter and fiscal end 2013.

“This past quarter we continued to build on our licensing efforts and have
made significant progress in expanding the number of discussions underway,”
said Eric Vetter, president and chief administrative officer of Unwired
Planet. “In addition, at the end of June we executed a capital raise and in
July we completed the transformation of our board of directors, both intended
to support our long term IP strategy. With these changes in place, we believe
we have fully transitioned the company to a licensing business.”

Simultaneously, Unwired Planet today announced the initiation of its Rights
Offering, which will commence on Monday, August 19, 2013. Shareholders of
record as of 5:00 p.m., New York time, on July 8, 2013, will receive the
Rights Offering prospectus and related materials from the company’s
information agent, Georgeson. Under the Rights Offering, each shareholder of
record has the option to purchase their proportionate share of the
approximately 7.5M shares being offered at $1.66 per share. The Rights
Offering period will be open until 5:00 p.m., New York time, on Monday,
September 9, 2013, unless we extend such period.

For more information on recent developments at Unwired Planet, please see our
blog update posted today that can be found on the company’s website.

On a GAAP basis, net loss for the fourth fiscal quarter ended June 30, 2013
was $8.7 million, or $0.09 per share, compared with a net loss of $12.2
million, or $0.13 per share, in the prior quarter, and with a net income of
$31.8 million, or $0.36 per diluted share, in the June quarter of the
preceding year. Net loss for the fiscal year ended June 30, 2013 was $47.6
million, or $0.53 per share, compared with a net income of $14.6 million, or
$0.17 per diluted share in the previous year.

On a non-GAAP basis, net loss for the fourth fiscal quarter ended June 30,
2013 was $6.5 million, or $0.07 per share, compared with a net loss of $5.8
million, or $0.06 per share, in the prior quarter, and with a net loss of $6.3
million, or $0.07 per share, in the June quarter of the preceding year. Net
loss for the fiscal year ended June 30, 2013 was $26.4 million, or $0.29 per
share, compared with a net loss of $4.3 million, or $0.05 per share in the
previous 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 fourth quarter and fiscal
end 2013. Interested parties may access the conference call over the Internet
through the company's website at www.unwiredplanet.com or by telephone at
877-941-1429 or 480-629-9857 (international). A replay of the conference call
will be available for three weeks (September 5, 2013), beginning at 5:00 p.m.
PT on August 15, 2013 by calling 800-406-7325. The replay can be accessed
internationally by calling 303-590-3030, access code: 4631190#.

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)
       
                                                         June 30,     June 30,
                                                         2013         2012
Assets
   Current Assets:
       Cash and cash equivalents                         $ 47,613     $ 39,709
       Short-term investments                              10,793       43,860
       Restricted cash and investments                     17,251       -
       Accounts receivable, net                            88           -
       Prepaid and other current assets                   420         3,960
         Total current assets                              76,165       87,529
                                                                      
   Property and equipment, net                             212          452
   Long-term investments                                   -            9,423
   Deposits and other assets                              1,861       89
         Total assets                                    $ 78,238     $ 97,493
                                                                      
Liabilities and Stockholders' Equity
   Current Liabilities:
       Accounts payable                                  $ 2,317      $ 6,088
       Accrued liabilities                                 3,876        4,161
       Accrued legal                                       3,686        3,958
       Accrued restructuring costs                        594         12,871
         Total current liabilities                         10,473       27,078
                                                                      
   Accrued restructuring costs, less current portion       259          827
   Long term note payable                                  22,096       -
   Other long term payables                               1,485       959
         Total liabilities                                 34,313       28,864
                                                                      
   Stockholders' equity                                   43,925      68,629
         Total liabilities and stockholders' equity      $ 78,238     $ 97,493
                                                                      
                                                                      

UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
                                                                 
                   Three Months Ended                      Twelve Months Ended
                   June 30,     March 31,     June 30,     June 30,      June 30,
                   2013         2013          2012         2013          2012
Revenues:
  Licensing        $ 106        $ 30          $ 4          $ 142         $ 15,050
  Revenue
  Fee share         (21    )    -           -          (21     )    -       
    Net Revenue     85         30          4          121         15,050  
                                                                         
Operating
Expenses:
  Sales and
  marketing        $ 27         $ 4             239          109           614
  expenses
  Patent
  licensing          4,705        2,861         4,623        16,281        13,089
  expenses
  General and        4,960        8,350         2,527        21,451        7,651
  administrative
  Restructuring
  and other         (77    )    42          190        1,771       2,666   
  related costs
    Total
    operating       9,615      11,257      7,579      39,612      24,020  
    expenses
                                                                         
Operating loss
from continuing      (9,530 )     (11,227 )     (7,575 )     (39,491 )     (8,970  )
operations
Interest and
other income        808        (1,043  )    (258   )    (146    )    (469    )
(expense), net
    Net loss
    from             (8,722 )     (12,270 )     (7,833 )     (39,637 )     (9,439  )
    continuing
    operations
Income taxes        42         -           (3,790 )    42          (1,289  )
    Net loss
    from             (8,764 )     (12,270 )     (4,043 )     (39,679 )     (8,150  )
    continuing
    operations
                                                                         
Gain (loss) on
sale of              -            600           45,133       (150    )     50,294
discontinued
operation
Discontinued        55         (514    )    (9,237 )    (7,784  )    (27,577 )
operations, net
Net Income         $ (8,709 )   $ (12,184 )   $ 31,853    $ (47,613 )   $ 14,567  
(loss)
                                                                         
                                                                         
Basic and
diluted net
income (loss)
per share from:
    Continuing     $ (0.10  )   $ (0.13   )   $ (0.05  )   $ (0.44   )   $ (0.09   )
    operations
    Discontinued   $ -         $ -           0.41       (0.09   )    0.26    
    operations
    Net income
    (loss) per     $ (0.09  )   $ (0.13   )   $ 0.36      $ (0.53   )   $ 0.17    
    share
                                                                         
Shares used in
basic and
diluted net          92,078       91,018        88,200       90,843        86,354
income (loss)
per share
                                                                         
Shares used in
diluted net          92,078       91,018        88,200       90,843        86,354
income (loss)
per share
                                                                         
Stock-based
compensation by
category:
  Sales and        $ -          $ -           $ 15         $ 1           $ 15
  marketing
  Patent             261          -           $ 43           261         $ 43
  initiative
  General and        1,742        4,413       $ 613          6,888       $ 1,774
  administrative
  Discontinued      -          62         $ 3,554      624        $ 6,573   
  operations
                   $ 2,003     $ 4,475      $ 4,225     $ 7,774      $ 8,405   
                                                                         
                                                                         

UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(In thousands, except per share data)
                                                                  
                  Three Months Ended                       Twelve Months Ended
                  June 30,     March 31,     June 30,      June 30,      June 30,
                  2013         2013          2012          2013          2012
                                                                         
Reconciliation
between GAAP
and Non-GAAP
net loss:
Net income        $ (8,709 )   $ (12,184 )   $ 31,853      $ (47,613 )   $ 14,567
(loss)
Exclude:
  Restructuring     (77    )     42            190           1,771         2,666
  costs
  Stock-based       2,003        4,413         671           7,150         1,832
  compensation
  Strategic         -            897           676           2,877         676
  costs
  Post
  strategic         377          1,073         -             1,450         -
  costs
  Discontinued
  operations,       (55    )     (86     )     (35,896 )     7,934         (22,717 )
  net of tax
  Tax impact
  related to       -          -           (3,790  )    42          (1,289  )
  unusual
  transactions
Non-GAAP net      $ (6,461 )   $ (5,845  )   $ (6,296  )   $ (26,389 )   $ (4,265  )
loss
                                                                         
GAAP net loss     $ (0.09  )   $ (0.13   )   $ 0.36        $ (0.52   )   $ 0.17
per share
Exclude:
  Restructuring   $ -          $ -           $ -           $ 0.02        $ 0.03
  costs
  Stock-based     $ 0.02       $ 0.05        $ 0.01        $ 0.08        $ 0.02
  compensation
  Strategic       $ -          $ 0.01        $ 0.01        $ 0.03        $ 0.01
  costs
  Post
  strategic       $ -          $ 0.01        $ -           $ 0.02
  costs
  Discontinued
  operations,     $ -          $ -           $ (0.41   )   $ 0.08        $ (0.26   )
  net of tax
  Tax impact
  related to      $ -         $ -          $ (0.04   )   $ -          $ (0.02   )
  unusual
  transactions
Non-GAAP net      $ (0.07  )   $ (0.06   )   $ (0.07   )   $ (0.29   )   $ (0.05   )
loss per share
                                                                         
Shares used in
computing net
loss per share:
  GAAP              92,078       91,018        88,200        90,843        86,354
  Non-GAAP          92,078       91,018        88,200        90,843        86,354
                                                                         
                                                                         

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.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
  
                    Three Months Ended                       Twelve Months Ended
                    June 30,     March 31,     June 30,      June 30,      June 30,
                    2013         2013          2012          2013          2012
Operating
activities:
  Net income        $ (8,709 )   $ (12,184 )   $ 31,853      $ (47,613 )   $ 14,567
  (loss)
  Loss/(gain) on
  sale of             -            (600    )     (45,133 )     150           (50,294 )
  discontinued
  operation
  Reconciling
  items:
    Depreciation,
    amortization
    of
    intangibles       2,023        4,495         4,626         8,057         12,416
    and
    stock-based
    compensation
    Non-cash
    restructuring     12           42            131           225           691
    charges
    Non-cash tax      -            -             (3,790  )     -             (1,289  )
    benefits
    Accelerated
    depreciation
    on                -            -             -             226           -
    restructured
    property and
    equipment
    Provision for
    doubtful          -            -             38            -             447
    accounts
    Other
    non-cash          98           1,241         534           1,877         1,313
    items, net
    Changes in
    operating        (1,277 )    (25,243 )    (8,676  )    (32,867 )    (21,479 )
    assets and
    liabilities
                                                                           
       Net cash
       used for      (7,853 )    (32,249 )    (20,417 )    (69,945 )    (43,628 )
       operating
       activities
                                                                           
Investing
activities:
  Purchases of
  property and        (5     )     (111    )     -             (269    )     (523    )
  equipment, net
  Payment of
  settlement
  related to          -            -             -             (1,893  )     (12,000 )
  discontinued
  operation
  Sale of
  discontinued        -            600           46,238        600           51,399
  operation, net
  Proceeds from
  sales and
  maturities of      10,778     15,133      (15,031 )    41,428      (4,709  )
  investments,
  net
                                                                           
       Net cash
       provided
       by            10,773     15,622      31,207      39,866      34,167  
       investing
       activities
                                                                           
Financing
activities:
  Net proceeds
  from Note           22,066       -             -             22,066        -
  Payable
  Net Proceeds
  from Registered     14,785       -             -             14,785        -
  Direct
  Treasury stock      (575   )     -             -             (575    )     -
  purchased
  Net proceeds
  from issuance      175        254         1,093       1,707       1,904   
  of common stock
                                                                           
       Cash
       provided
       by            36,451     254         1,093       37,983      1,904   
       financing
       activities
Net increase
(decrease) in         39,371       (16,373 )     11,883        7,904         (7,557  )
cash and cash
equivalents
Cash and cash
equivalents at       8,242      24,615      27,826      39,709      47,266  
beginning of
period
Cash and cash
equivalents at
end of period,      $ 47,613    $ 8,242      $ 39,709     $ 47,613     $ 39,709  
including
discontinued
operations

Contact:

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