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

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

Business Wire

RENO, Nev. -- January 30, 2014

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

“During the second quarter, we pressed forward with our licensing efforts,
launched an enforcement action to protect our mobile payment patents, saw key
dates set in previously existing litigation, and set the ground work for
future licensing options,” said Eric Vetter, president and chief
administrative officer of Unwired Planet. “While the licensing environment
continues to be difficult, we are encouraged by our progress, as well as
external market developments over the past three months. We continue to focus
on pursuing a variety of licensing and alternative value creation strategies
while closely managing our costs.”

On a GAAP basis, net loss for second fiscal quarter ended December 31, 2013
was $7.3 million, or $0.07 per share, compared with a net loss of $7.2
million, or $0.07 per share, in the prior quarter, and with a net loss of
$11.6 million, or $0.13 per share, in the December quarter of the preceding
year.

On a non-GAAP basis, net loss for the second fiscal quarter ended December 31,
2013 was $7.1 million, or $0.07 per share, compared with a net loss of $6.6
million, or $0.06 per share, in the prior quarter, and with a net loss of $6.1
million, or $0.07 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 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 Cash Flows.

Conference Call Information

Unwired Planet has scheduled a conference call for 5:00 p.m. eastern time
today to discuss its financial results for its second 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 877-941-8416
or 480-629-9808 (international). A replay of the conference call will be
available until February 20, 2014, beginning at 5:00 p.m. PT on January 30,
2014 by calling 800-406-7325. The replay can be accessed internationally by
calling 303-590-3030, access code: 4663708#.

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 approximately 2,600 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, mobile
payments, and mobile search, among others.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
(In thousands, except par value)
Unaudited

                                              December 31,    June 30,
                                                2013           2013       
ASSETS
Current assets:
Cash and cash equivalents                      $ 11,063         $ 47,613
Short-term investments                           40,038           10,793
Restricted cash and investments                  -                17,251
Accounts receivable                              -                88
Prepaid and other current assets                588            420        
Total current assets                             51,689           76,165
Property and equipment, net of accumulated       216              212
depreciation
Long-term investments                            21,831           -
Debt issue costs and other assets               1,876          1,861      
Total assets                                   $ 75,612        $ 78,238     

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                 724            $ 2,317
Accrued liabilities                              1,119            2,817
Accrued legal expense                            4,018            3,686
Accrued compensation                             716              1,057
Accrued restructuring costs                     514            594        
Total current liabilities                        7,091            10,471
Accrued restructuring costs, net of current      -                259
portion
Long-term note payable                           23,831           22,096
Other long-term liabilities                     930            1,485      
Total liabilities                               31,852         34,311     
Stockholders' equity
Preferred stock                                  -                -
Common stock                                     109              100
Treasury stock                                   (702       )     (575       )
Additional paid-in-capital                       3,239,201        3,224,769
Accumulated other comprehensive income           -                2
Accumulated deficit                             (3,194,848 )    (3,180,369 )
Total stockholders' equity                      43,760         43,927     
Total liabilities and stockholders' equity     $ 75,612        $ 78,238     
                                                                


UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Unaudited

                        Three Months Ended         Six Months Ended
                         December 31,                December 31,
                          2013       2012        2013       2012    
Revenue:
License fees             $ -           $ 3           $ -           $ 6
Fee Share                 -           -           -           -       
Net revenue               -           3           -           6       
                                                                   
Operating costs and
expenses:
Sales and marketing        -             -             -             78
expense
Patent licensing           5,743         3,156         10,546        8,715
expenses
General and                1,359         4,350         3,143         8,141
administrative
Restructuring and         -           1,349       -           1,806   
other related costs
Total operating costs     7,102       8,855       13,689      18,740  
and expenses
Operating loss from        (7,102  )     (8,852  )     (13,689 )     (18,734 )
continuing operations
                                                                   
Interest income            27            57            70            135
Interest expense           (899    )     -             (1,782  )     (3      )
Other income              449         (18     )    803         (43     )
(expense), net
Loss from continuing      (7,525  )    (8,813  )    (14,598 )    (18,645 )
operations
                                                                   
Discontinued
operations:
Loss on sale of
discontinued               -             -             -             (750    )
operations
Discontinued              232         (2,797  )    119         (7,325  )
operations, net of tax
(Income) loss from
discontinued               232           (2,797  )     119           (8,075  )
operations
                                                                
Net loss                 $ (7,293  )   $ (11,610 )   $ (14,479 )   $ (26,720 )
                                                                   
Basic and diluted net
loss per share from:
Continuing operations    $ (0.07   )   $ (0.10   )   $ (0.14   )   $ (0.21   )
Discontinued              -           (0.03   )    -           (0.09   )
operations
Net loss                 $ (0.07   )   $ (0.13   )   $ (0.14   )   $ (0.30   )
                                                                   
Weighted average
shares outstanding         109,141       90,323        105,631       90,147
basic and diluted
                                                                   


UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Unaudited

                                                    Six Months Ended
                                                     December 31,
                                                      2013       2012    
Cash flows from operating activities:
Net loss                                             $ (14,479 )   $ (26,720 )
Loss on sale of discontinued operations                -             750
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization                          47            243
Stock-based compensation                               910           1,296
Non-cash restructuring charges                         2             397
Amortization of premiums/discounts on investments,     69            537
net
Realized loss on sale of investments                   81            -
Gain on change of fair value on consultant             (795    )     -
incentive award obligation
In kind interest payments on note payable              1,627         -
Amortization debt discount and issuance costs          155           -
Changes in operating assets and liabilities:
Accounts receivable                                    88            -
Prepaid assets, deposits, and other assets             (231    )     2,408
Accounts payable                                       (1,593  )     667
Accrued liabilities                                    (417    )     (2,690  )
Accrued restructuring costs                            (341    )     (6,285  )
Restricted Cash                                       17,251      (675    )
Net cash provided by (used in) operating              2,374       (30,072 )
activities
                                                                   
Cash flows from investing activities:
Proceeds from sale (Purchases) of property and         (51     )     74
equipment
Payments to vendors related to the sale of             -             (1,893  )
discontinued operation
Purchases of short-term investments                    (29,851 )     (10,014 )
Proceeds from sales and maturities of investments      17,107        26,476
Purchases of long-term investments                     (38,482 )     (948    )
Proceeds from sales and maturities of long-term       -           5       
investments
Net cash provided by (used for) investing             (51,277 )    13,700  
activities
                                                                   
Cash flows from financing activities:
Net proceeds from rights offering issuance of          12,500        -
common stock
Proceeds from issuance of common stock                 1,446         1,272
Payment of debt and equity issuance costs              (1,467  )     -
Purchase of treasury stock                             (126    )     -
Employee stock purchase plan                          -           6       
Net cash provided by financing activities             12,353      1,278   
                                                                   
Net decrease in cash and cash equivalents              (36,550 )     (15,094 )
Cash and cash equivalents at beginning of period      47,613      39,709  
Cash and cash equivalents at end of period           $ 11,063     $ 24,615  
                                                                             

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 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 LOSS TO NON-GAAP LOSS - UNAUDITED
(In thousands, except per share data)

                             Three Months Ended      Six Months Ended
                              December 31,             December 31,
                              2013       2012         2013        2012
Reconciliation between GAAP
and Non-GAAP net loss:
Net loss                      $ (7,293)   $ (11,610)   $ (14,479)   $ (26,720)
Exclude:
Restructuring costs           -           1,349        -            1,806
Stock-based compensation      466         298          910          734
Strategic costs               -           1,094        -            1,980
Discontinued operations,      (232)       2,797        (119)        8,075
net of tax
Non-GAAP net loss             $ (7,059)   $ (6,072)    $ (13,688)   $ (14,125)
                                                                    
GAAP net loss per share       $ (0.07)    $ (0.13)     $ (0.14)     $ (0.30)
Exclude:
Restructuring costs           -           0.02         -            0.02
Stock-based compensation      -           -            0.01         0.01
Post strategic costs          -           0.01         -            0.02
Discontinued operations,      -           0.03         -            0.09
net of tax
Non-GAAP net loss             $ (0.07)    $ (0.07)     $ (0.13)     $ (0.16)
                                                                    
Shares used in computing      109,141     90,323       105,631      90,147
net loss per share GAAP
Non-GAAP                      109,141     90,323       105,631      90,147
                                                                    

Contact:

for Unwired Planet, Inc.
The Blueshirt Group
Mike Bishop,415-217-4968
mike@blueshirtgroup.com
 
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