Unwired Planet, Inc. Announces First Quarter Fiscal 2014 Financial Results

  Unwired Planet, Inc. Announces First Quarter Fiscal 2014 Financial Results

Business Wire

RENO, Nev. -- October 31, 2013

Unwired Planet, Inc. (UPIP) today announced financial results for the first
quarter of fiscal year 2014.

“We continue to aggressively pursue licensing opportunities while managing our
operating costs,” said Eric Vetter, president and chief administrative officer
of Unwired Planet. “We have created an optimized partnership with some of the
leading intellectual property law firms to cost efficiently drive our patent
protection initiatives.”

On a GAAP basis, net loss for first fiscal quarter ended September 30, 2013
was $7.2 million, or $0.07 per share, compared with a net loss of $8.7
million, or $0.09 per share, in the prior quarter, and with a net loss of
$15.1 million, or $0.17 per share, in the September quarter of the preceding
year.

On a non-GAAP basis, net loss for the first fiscal quarter ended September 30,
2013 was $6.6 million, or $0.06 per share, compared with a net loss of $6.5
million, or $0.07 per share, in the prior quarter, and with a net loss of $8.1
million, or $0.09 per share, in the September quarter of the preceding year.
Non-GAAP net loss excludes restructuring, stock-based compensation, strategic
and post-strategic costs, discontinued operations, and the tax impact of these
items.

A reconciliation between net loss and net 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 first quarter fiscal 2014.
Interested parties may access the conference call over the Internet through
the company's website at www.unwiredplanet.com or by telephone at 877-941-4774
or 480-629-9760 (international). A replay of the conference call will be
available until November 28, 2013, beginning at 5:00 p.m. PT on October 31,
2013 by calling 800-406-7325. The replay can be accessed internationally by
calling 303-590-3030, access code: 4644552#.

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.unwiredplanet.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 approximately 2,450 issued and
pending 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, 2013. 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,
                                            2013               2013       
                                                                
ASSETS
                                                                
Current assets:
Cash and cash equivalents                  $ 9,625              $ 47,613
Short-term investments                       39,532               10,793
Restricted cash and investments              -                    17,251
Accounts receivable                          -                    88
Prepaid and other current assets            490                420        
Total current assets                         49,647               76,165
                                                                             
Property and equipment, net of
accumulated depreciation of $116 and         240                  212
$93
Long-term investments                        31,814               -
Deposits and other assets                   1,854              1,861      
Total assets                               $ 83,555            $ 78,238     
                                                                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                
Current liabilities:
Accounts payable                           $ 3,354              $ 2,317
Accrued liabilities                          2,130                2,817
Accrued legal expense                        2,802                3,686
Accrued compensation                         860                  1,057
Accrued restructuring costs                 544                594        
Total current liabilities                    9,690                10,471
Accrued restructuring costs, net of          138                  259
current portion
Long-term note payable                       22,952               22,096
Other long-term liabilities                 1,478              1,485      
Total liabilities                           34,258             34,311     
                                                                
Stockholders’ equity:
Common stock                                 108                  100
Treasury stock                               (645       )         (575       )
Additional paid-in capital                   3,237,397            3,224,769
Accumulated other comprehensive              (8         )         2
income (loss)
Accumulated deficit                         (3,187,555 )        (3,180,369 )
Total stockholders’ equity                  49,297             43,927     
Total liabilities and stockholders'        $ 83,555            $ 78,238     
equity


UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
                                                       
                            Three Months Ended
                            September 30,       June 30,         September 30,
                              2013             2013            2012     
                                                                 
Revenue:
License Fees                $  -                $ 106            $  3
Fee Share                     -                (21    )         -        
Net revenue                   -                85              3        
                                                                 
Operating costs and
expenses:
Sales and marketing            -                  27                78
expense
Patent licensing               4,803              4,705             5,559
expenses
General and                    1,784              4,960             3,791
administrative
Restructuring and             -                (77    )         457      
other related costs
Total operating costs         6,587            9,615           9,885    
and expenses
Operating loss                 (6,587   )         (9,530 )          (9,882   )
                                                                 
Interest income                43                 16                78
Interest expense               (883     )         (31    )          (3       )
Other income                  354              823             (25      )
(expense), net
Net loss from                 (7,073   )        (8,722 )         (9,832   )
continuing operations
Income tax                    -                42              -        
Net loss from                 (7,073   )        (8,764 )         (9,832   )
continuing operations
                                                                 
Discontinued
operations:
Loss on sale of
discontinued                   -                  -                 (750     )
operations
Discontinued
operations, net of            (113     )        55              (4,528   )
tax
Loss from
discontinued                   (113     )         55                (5,278   )
operations
                                                               
Net loss                    $  (7,186   )       $ (8,709 )       $  (15,110  )
                                                                 
Basic and diluted net
loss per share from:
Continuing operations       $  (0.07    )       $ (0.09  )       $  (0.11    )
Discontinued                $  -               $ -             $  (0.06    )
operations
Net loss per share          $  (0.07    )       $ (0.09  )       $  (0.17    )
                                                                 
Weighted average
shares outstanding -           102,144            92,078            89,971
basic and diluted
                                                                 
                                                                 
Stock-based
compensation by
category:
Sales and marketing         $  -                $ -              $  1
Patent initiative              285                261               -
General and                    160                1,742             435
administrative
Discontinued                  -                -               73       
operations
                            $  445             $ 2,003         $  509      

                        
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
                                                          
                            Three Months Ended
                            September 30,       June 30,         September 30,
                              2013             2013            2012     
Cash flows from
operating activities:
Net loss                    $  (7,186   )     $   (8,709 )     $    (15,110  )
Loss on sale of
discontinued                   -                  -                 750
operations
Adjustments to
reconcile net loss to
net cash provided by
(used in) operating
activities:
Depreciation                   23                 20                144
Stock-based                    445                2,003             509
compensation
Non-cash                       6                  12                100
restructuring charges
Amortization of
premiums/discounts on          16                 69                300
investments, net
Gain on change in
fair value of                  (409     )         -                 -
consultant incentive
award obligation
Realized loss on sale          115                -                 -
of investments
In-kind interest
payments on note               796                27                -
payable
Amortization of debt
discount and issuance          87                 2                 -
costs
Changes in operating
assets and
liabilities:
Accounts receivable            88                 (88    )          -
Prepaid assets,
deposits, and other            (90      )         1,165             1,193
assets
Accounts payable               (52      )         (388   )          2,536
Accrued liabilities            (412     )         (275   )          (1,559   )
Accrued restructuring          (176     )         (2,360 )          (3,697   )
costs
Restricted cash               17,251           898             -        
Net cash provided by
(used in) operating           10,502           (7,624 )         (14,834  )
activities
                                                                 
Cash flows from
investing activities:
Purchases of property          (50      )         (232   )          -
and equipment
Payments to vendors
related to the sale            -                  -                 (1,893   )
of discontinued
operations
Purchases of
short-term                     (29,854  )         -                 (4,361   )
investments
Proceeds from sales
and maturities of              7,643              10,776            12,195
investments
Purchases of                  (38,482  )        -               (948     )
long-term investments
Net cash provided by
(used in) investing           (60,743  )        10,544          4,993    
activities
                                                                 
Cash flows from
financing activities:
Net proceeds from              -                  22,066            -
note payable
Net proceeds from
registered direct              -                  14,785            -
issuance of common
stock
Proceeds from rights
offering issuance of           12,500             -                 -
common stock
Proceeds from
issuance of common             107                175               1,271
stock
Registered direct              (284     )         -                 -
offering costs
Purchase of treasury          (70      )        (575   )         -        
stock
Net cash provided by          12,253           36,451          1,271    
financing activities
                                                                 
Net increase
(decrease) in cash             (37,988  )         39,371            (8,570   )
and cash equivalents
Cash and cash
equivalents at                47,613           8,242           39,709   
beginning of period
Cash and cash
equivalents at end of       $  9,625           $ 47,613        $  31,139   
period

Non-GAAP Measure

The Company’s stated results include the non-GAAP measures: non-GAAP net loss
and non-GAAP net 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 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 LOSS TO NON-GAAP NET LOSS-UNAUDITED
(In thousands, except per share data)
                                                      
                            Three Months Ended
                            September 30,       June 30,         September 30,
                              2013             2013            2012     
                                                                 
Reconciliation
between GAAP and
Non-GAAP net loss:
Net loss                    $  (7,186   )       $ (8,709 )       $  (15,110  )
Exclude:
    Restructuring              -                  (77    )          457
    costs
    Stock-based                445                2,003             436
    compensation
    Strategic costs            -                  -                 886
    Post strategic             -                  377               -
    costs
    Discontinued
    operations, net           113              (55    )         5,278    
    of tax
Non-GAAP net loss           $  (6,628   )       $ (6,461 )       $  (8,053   )
                                                                 
GAAP net loss per           $  (0.07    )       $ (0.09  )       $  (0.17    )
share
Exclude:
    Restructuring           $  -                $ -              $  0.01
    costs
    Stock-based             $  -                $ 0.02           $  -
    compensation
    Strategic costs         $  -                $ -              $  0.01
    Post strategic          $  -                $ -              $  -
    costs
    Discontinued
    operations, net         $  -               $ -             $  0.06     
    of tax
Non-GAAP net loss per       $  (0.06    )       $ (0.07  )       $  (0.09    )
share
                                                                 
Shares used in
computing net loss
per share:
    GAAP                       102,144            92,078            89,971
    Non-GAAP                   102,144            92,078            89,971

Contact:

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