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 firstname.lastname@example.org
Unwired Planet, Inc. Announces Second Quarter Fiscal 2014 Financial Results
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