Unwired Planet, Inc. Announces Preliminary Fourth Quarter and Fiscal Year 2015 Financial Results

RENO, Nev.--()--Unwired Planet, Inc. (NASDAQ:UPIP) today announced preliminary unaudited financial results for the fourth quarter and fiscal year 2015.

“We have been busy reviewing every element of operations including our operational model, cost structure, and our licensing initiatives with the goal to increase our focus and discipline on operational efficiencies and execution actions to drive our licensing business”

Revenue for the fourth quarter ended June 30, 2015 was $0.8 million, while loss from continuing operations totaled $9.0 million. Revenue for the fiscal year ended June 30, 2015 was $4.5 million, and loss from continuing operations totaled $41.8 million.

“We have been busy reviewing every element of operations including our operational model, cost structure, and our licensing initiatives with the goal to increase our focus and discipline on operational efficiencies and execution actions to drive our licensing business,” said Boris Teksler, president and chief executive officer. “While there’s still a lot of work to do to generate the licensing revenues we want to see, we are beginning to see indications that our strategy is starting to gain traction as a result of the actions we took in 2015.”

“The company continued on its planned course of investing in the realization of value in its patent portfolio,” said Dean (Kip) Witter, interim chief financial officer. “Net revenue declined from the prior quarter due to a fee share expense recognized currently on licensing revenue that was deferred. General and administrative expenses were slightly lower compared to the prior quarter, and patent licensing expenses decreased by $1.4 million from the preceding quarter, a decline attributable to expected cycles of activity in the U.S.-based patent enforcement actions the company is undertaking, partially offset against an increase in activity in the company’s European enforcement actions.”

On a GAAP basis, net loss for the fourth quarter ended June 30, 2015 was $9.0 million, or $0.08 per share, compared with a net income of $24.3 million, or $0.22 per share, in the fourth quarter of the preceding year. Net loss for the fiscal year ended June 30, 2015 was $41.8 million, or $0.37 per share, compared with a net income of $0.4 million, or $0.00 per share in the previous year.

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 year 2015. Interested parties may access the conference call over the Internet through the company's website at www.unwiredplanet.com or by telephone at 888-510-1765 or 719-325-2454 (international). A replay of the conference call will be available for one week (September 1), beginning at 5:00 p.m. PT on August 25 by calling 888-203-1112. The replay can be accessed internationally by calling 719-457-0820, access code: 6607336.

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 2,500 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's portfolio includes patents related to key mobile technologies, including baseband mobile communications, mobile browsers, mobile advertising, push notification technology, maps and location based services, mobile application stores, social networking, mobile gaming, and mobile search. Unwired Planet is headquartered in Reno, Nevada. References in this release to Unwired Planet may be to Unwired Planet, Inc. or its subsidiaries.

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 related recognition of revenue, litigation strategy and prospects 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, 2015. 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.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)
 
June 30,
  2015     2014  

ASSETS

Current assets:
Cash and cash equivalents $ 73,755 $ 93,877
Short-term investments 11,713 40,068
Restricted cash 27 378
Prepaid and other current assets   632     666  
Total current assets 86,127 134,989
Property and equipment, net 110 187
Long-term investments - 11,745
Initial direct license costs, net 1,595 2,061
Debt issuance costs and other assets, net   1,052     1,459  
Total assets $ 88,884   $ 150,441  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 678 $ 1,181
Fee share obligation 500 12,850
Deferred revenue 5,005 5,005
Accrued liabilities 970 1,577
Accrued legal expense 3,152 4,054
Accrued compensation 433 605
Accrued restructuring costs   -     254  
Total current liabilities 10,738 25,526
Fee share obligation, net of current portion - 7,182
Deferred revenue, net of current portion 24,562 28,566
Long-term note payable 29,874 25,693
Other long-term liabilities   206     403  
Total liabilities   65,380     87,370  
Commitments and Contingencies
Stockholders' equity
Preferred stock - -
Common stock 112 111
Treasury stock (93 ) (884 )
Additional paid-in-capital 3,244,946 3,243,756
Accumulated other comprehensive income 234 24
Accumulated deficit   (3,221,695 )   (3,179,936 )
Total stockholders' equity   23,504     63,071  
Total liabilities and stockholders' equity $ 88,884   $ 150,441  
 
 
UNWIRED PLANET, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)
   
Fiscal Year Ended June 30,
  2015     2014     2013  
Net revenue $ 4,505 $ 36,396 $ 121
 
Operating costs and expenses:
Sales and marketing expense - - 109
Patent licensing expenses 31,068 23,008 16,281
General and administrative 11,029 9,975 21,451
Restructuring and other related costs   2     9     1,771  
Total operating costs and expenses   42,099     32,992     39,612  
Operating income (loss) from continuing operations (37,594 ) 3,404 (39,491 )
 
Interest income 72 121 189
Interest expense (4,332 ) (3,697 ) (34 )
Other income (expense), net   268     625     (301 )
Income (loss) from continuing operations   (41,586 )   453     (39,637 )
 
Income taxes   164     -     42  
 
Income (loss) from continuing operations (41,750 ) 453 (39,679 )
 
Discontinued operations:
Loss on sale of discontinued operation - - (150 )
Loss from discontinued operations, net of tax   (8 )   (20 )   (7,784 )
Loss from discontinued operations, net of tax (8 ) (20 ) (7,934 )
     
Net income (loss) $ (41,758 ) $ 433   $ (47,613 )
 
Basic earnings (loss) per share from:
Continuing operations $ (0.37 ) $ - $ (0.44 )
Discontinued operations   -     -     (0.09 )
Net income (loss) $ (0.37 ) $ -   $ (0.53 )
 
Diluted earnings (loss) per share from:
Continuing operations $ (0.37 ) $ - $ (0.44 )
Discontinued operations   -     -     (0.09 )
Net income (loss) $ (0.37 ) $ -   $ (0.53 )
 
Weighted average shares outstanding
Basic 111,993 107,982 90,843
Diluted 111,993 108,694 90,843
 
 
UNWIRED PLANET, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)
   
Fiscal year ended June 30,
  2015     2014     2013  
Cash flows from operating activities:
Net income (loss) $ (41,758 ) $ 433 $ (47,613 )
Gain on sale of discontinued operations - - 150
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Proceeds from sale of patents acquired for immediate resale - 10,000 -
Depreciation and amortization 107 97 282
Stock-based compensation 2,101 2,222 6,235
Consultant stock-based compensation - 2,130 1,540
Non-cash restructuring charges 2 15 451
Amortization of premiums/discounts on investments, net 79 151 753
Realized loss on sale of investments - 81 1,094
Gain on change in fair value of consultant incentive award obligation (316 ) (588 ) -
In kind interest payments on note payable 3,837 3,370 27
Amortization debt discount and issuance costs 495 326 2
Acquisition of patents acquired for immediate resale - (10,000 ) -
Changes in operating assets and liabilities:
Accounts receivable - 88 (88 )
Initial licensing costs 483 (2,417 ) -
Prepaid assets, deposits, and other assets 37 410 3,540
Accounts payable (503 ) (1,136 ) (2,995 )
Fee share obligation (19,532 ) 20,032 -
Accrued liabilities (1,331 ) (768 ) (2,493 )
Deferred revenue (4,004 ) 33,571 -
Accrued restructuring costs (256 ) (614 ) (13,070 )
Restricted cash   586     16,873     (17,759 )
Net cash provided by (used in) operating activities   (59,973 )   74,276     (69,944 )
 
Cash flows from investing activities:
Purchases of property and equipment (30 ) (72 ) (269 )
Payments to vendors related to the sale of discontinued operation - - (1,893 )
Proceeds from sale of discontinued operations, net - - 600
Purchases of investments - (78,337 ) (10,962 )
Proceeds from sales and maturities of investments   40,000     37,107     52,389  
Net cash provided by (used in) investing activities   39,970     (41,302 )   39,865  
 
Cash flows from financing activities:
Proceeds from note payable, net of discounts - - 22,066
Proceeds from registered direct issuance of common stock, net of offering costs - - 14,785
Proceeds from rights offering issuance of common stock - 12,500 -
Proceeds from exercise of stock options 91 2,571 1,701
Payment of debt and equity issuance costs - (1,472 ) -
Purchase of treasury stock (210 ) (309 ) (575 )
Employee stock purchase plan   -     -     6  
Net cash provided by (used in) financing activities   (119 )   13,290     37,983  
 
Net increase (decrease) in cash and cash equivalents (20,122 ) 46,264 7,904
Cash and cash equivalents at beginning of period   93,877     47,613     39,709  
Cash and cash equivalents at end of period $ 73,755   $ 93,877   $ 47,613  
 

Contacts

The Blueshirt Group
Lauren Stevens, 415-217-2632
Lauren@blueshirtgroup.com

Unwired Planet, Inc.