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 email@example.com
Unwired Planet, Inc. Announces First Quarter Fiscal 2014 Financial Results
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