Exhibit 99.1
UNWIRED PLANET REPORTS FOURTH QUARTER AND
FISCAL END 2012 FINANCIAL RESULTS
REDWOOD CITY, CA – August 15, 2012 – Unwired Planet, formerly Openwave Systems Inc. (Nasdaq: UPIP), today announced financial results for the fourth quarter and fiscal year end 2012.
“We are excited about the significant progress we have made in transforming Unwired Planet into an Intellectual property company. Over the past nine months, we have divested the products businesses, added IP experience to the management team and Board, and embarked on a strategy with significant potential,” said Mike Mulica, Chief Executive Officer of Unwired Planet. “The company continues to transform, making great strides towards executing our multi-pronged IP strategy.”
On a GAAP basis, net income for the fourth fiscal quarter ended June 30, 2012 was $31.9 million or $0.36 per share, compared with a net loss of $9.5 million, or $0.11 per share, in the prior quarter and net loss of $20.0 million or $0.23 per share, in the June quarter in the preceding year. Restructuring costs in the quarter were $0.2 million. Net income on a GAAP basis for the year was $14.6 million, or $0.17 per share, driven by the gain on the sale of discontinued operations, compared with a net loss of $35.2 million, or $0.42 per share, in the prior year.
On a non-GAAP basis, net loss for the fourth fiscal quarter ended June 30, 2012 was $6.3 million or $0.07 per share, compared with a net loss of $4.7 million or $0.05 per share, in the prior quarter and a net loss of $3.0 million, or $0.04 per share, in the June quarter in the preceding year. Net loss on a non-GAAP basis was $4.3 million, or $0.05 per share, for fiscal 2012 compared with a net loss of $4.5 million, or $0.05 per share, in fiscal 2011. Non-GAAP net loss excludes discontinued operations, restructuring, impairments on investments, amortization of stock-based
Unwired Planet Reports Fourth Quarter 2012
compensation, amounts associated with certain strategic costs, certain losses on investments and the tax impact of these items.
A reconciliation between net income (loss) and net income (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.
Non-GAAP Financial Measures
The Company’s stated results include the following 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, impairments on investments, certain strategic costs, and discontinued operations. Unwired Planet considers non-GAAP net loss to be an important measure 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.
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 ended June 30, 2012. Interested parties may access the conference call over the Internet through Unwired Planet’s website at www.unwiredplanet.com or by telephone at (877) 941-1427 or (480) 629-9664 (international). A replay of the conference call will be available for three weeks (until September 5), beginning at 5:00 p.m. PT on August 15 by calling
Unwired Planet Reports Fourth Quarter 2012
(800) 406-7325. The replay can be accessed internationally by calling (303) 590-3030, access code: 4555560 #. 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.openwave.com/investors/index.html. A replay will be available on the website for at least three months.
About Unwired Planet
Unwired Planet (NASDAQ: UPIP) is the inventor of the mobile internet. Unwired Planet established many of the foundational patents that allow mobile devices to connect to the Internet. Over the years, the company has amassed a patent portfolio of approximately 200 issued US and foreign patents and approximately 75 pending applications, many of which are considered foundational to mobile communications, and span smart devices, cloud technologies and unified messaging. Unwired Planet is headquartered in Silicon Valley, California.
Cautionary Note Regarding Forward Looking Statements
The statements in this press release in Mr. Mulica’s quote with respect to future events or expectations 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, 2011. 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 ReportsFourth Quarter 2012
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED
(In thousands)
| | | | | | | | |
| | | June 30,
2012 | | | June 30,
2011 | |
Assets | | | | | | | | |
Current Assets: | | | | | | | | |
Cash, cash equivalents and short-term investments | | $ | 83,569 | | | $ | 81,213 | |
Prepaid and other current assets | | | 3,960 | | | | 2,687 | |
Current assets of discontinued operation | | | — | | | | 35,414 | |
| | | | | | | | |
Total current assets | | | 87,529 | | | | 119,314 | |
| | |
Property and equipment, net | | | 452 | | | | 1,475 | |
Long-term investments | | | 9,423 | | | | 15,630 | |
Deposits and other assets | | | 89 | | | | 114 | |
Noncurrent assets of discontinued operation | | | — | | | | 11,284 | |
| | | | | | | | |
Total assets | | $ | 97,493 | | | $ | 147,817 | |
| | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | |
Current Liabilities: | | | | | | | | |
Accounts payable | | $ | 6,088 | | | $ | 2,271 | |
Accrued liabilities | | | 8,119 | | | | 5,265 | |
Accrued settlement related to discontinued operations | | | — | | | | 12,000 | |
Accrued restructuring costs | | | 12,871 | | | | 13,660 | |
Current liabilities of discontinued operation | | | — | | | | 48,376 | |
| | | | | | | | |
Total current liabilities | | | 27,078 | | | | 81,572 | |
| | |
Accrued restructuring costs, less current portion | | | 827 | | | | 12,515 | |
Deferred rent obligations and long-term taxes payable | | | 959 | | | | 1,415 | |
Noncurrent liabilities of discontinued operation | | | — | | | | 9,370 | |
| | | | | | | | |
Total liabilities | | | 28,864 | | | | 104,872 | |
| | |
Stockholders’ equity | | | 68,629 | | | | 42,945 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 97,493 | | | $ | 147,817 | |
| | | | | | | | |
Unwired Planet ReportsFourth Quarter 2012
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | June 30,
2012 | | | March 31,
2012 | | | June 30,
2011 | | | June 30,
2012 | | | June 30,
2011 | |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Patents | | $ | 4 | | | $ | 20 | | | $ | 10 | | | $ | 15,050 | | | $ | 4,019 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 4 | | | | 20 | | | | 10 | | | | 15,050 | | | | 4,019 | |
| | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | |
Sales and marketing expenses | | | 239 | | | | — | | | | — | | | | 614 | | | | — | |
Patent initiative expenses | | | 4,623 | | | | 3,470 | | | | 1,698 | | | | 13,089 | | | | 3,398 | |
General and administrative | | | 2,527 | | | | 2,157 | | | | 1,647 | | | | 7,651 | | | | 5,732 | |
Restructuring and other related costs | | | 190 | | | | 141 | | | | 301 | | | | 2,666 | | | | 2,226 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 7,579 | | | | 5,768 | | | | 3,646 | | | | 24,020 | | | | 11,356 | |
| | | | | | | | | | | | | | | | | | | | |
Operating loss from continuing operations | | | (7,575 | ) | | | (5,748 | ) | | | (3,636 | ) | | | (8,970 | ) | | | (7,337 | ) |
Interest and other income (expense), net | | | (258 | ) | | | 36 | | | | (433 | ) | | | (469 | ) | | | (653 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net loss from continuing operations | | | (7,833 | ) | | | (5,712 | ) | | | (4,069 | ) | | | (9,439 | ) | | | (7,990 | ) |
Income taxes | | | (3,790 | ) | | | — | | | | 115 | | | | (1,289 | ) | | | 115 | |
| | | | | | | | | | | | | | | | | | | | |
Net loss from continuing operations | | | (4,043 | ) | | | (5,712 | ) | | | (4,184 | ) | | | (8,150 | ) | | | (8,105 | ) |
Gain on sale of discontinued operation | | | 45,133 | | | | 5,161 | | | | (12,000 | ) | | | 50,294 | | | | (9,764 | ) |
Discontinued operations, net | | | (9,237 | ) | | | (8,986 | ) | | | (3,776 | ) | | | (27,577 | ) | | | (17,379 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 31,853 | | | $ | (9,537 | ) | | $ | (19,960 | ) | | $ | 14,567 | | | $ | (35,248 | ) |
| | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per share from: | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | (0.05 | ) | | $ | (0.07 | ) | | $ | (0.05 | ) | | $ | (0.09 | ) | | $ | (0.10 | ) |
Discontinued operations | | | 0.41 | | | | (0.04 | ) | | | (0.18 | ) | | | 0.26 | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share | | $ | 0.36 | | | $ | (0.11 | ) | | $ | (0.23 | ) | | $ | 0.17 | | | $ | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | |
Shares used in basic and diluted net income (loss ) per share | | | 88,200 | | | | 86,146 | | | | 85,216 | | | | 86,354 | | | | 84,577 | |
| | | | | |
Stock-based compensation by category: | | | | | | | | | | | | | | | | | | | | |
Sales and marketing | | $ | 15 | | | $ | — | | | $ | — | | | $ | 15 | | | $ | — | |
Patent initiative | | | 43 | | | | — | | | | — | | | | 43 | | | | — | |
General and administrative | | | 613 | | | | 894 | | | | 111 | | | | 1,774 | | | | 402 | |
Discontinued operations | | | 3,554 | | | | 2,066 | | | | 437 | | | | 6,573 | | | | 2,081 | |
| | | | | | | | | | | | | | | | | | | | |
| | $ | 4,225 | | | $ | 2,960 | | | $ | 548 | | | $ | 8,405 | | | $ | 2,483 | |
| | | | | | | | | | | | | | | | | | | | |
Unwired Planet ReportsFourth Quarter 2012
UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | June 30,
2012 | | | March 31,
2012 | | | June 30,
2011 | | | June 30,
2012 | | | June 30,
2011 | |
Reconciliation between GAAP and Non-GAAP net loss: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 31,853 | | | $ | (9,537 | ) | | $ | (19,960 | ) | | $ | 14,567 | | | $ | (35,248 | ) |
Exclude: | | | | | | | | | | | | | | | | | | | | |
Restructuring costs | | | 190 | | | | 141 | | | | 301 | | | | 2,666 | | | | 2,226 | |
Stock-based compensation | | | 671 | | | | 894 | | | | 111 | | | | 1,832 | | | | 402 | |
Strategic costs | | | 676 | | | | — | | | | — | | | | 676 | | | | — | |
Discontinued operations, net of tax | | | (35,896 | ) | | | 3,825 | | | | 15,776 | | | | (22,717 | ) | | | 27,143 | |
Realized losses and other-than-temporary impairments of investments | | | — | | | | — | | | | 632 | | | | — | | | | 908 | |
Tax impact related to unusual transactions | | | (3,790 | ) | | | — | | | | 115 | | | | (1,289 | ) | | | 115 | |
| | | | | | | | | | | | | | | | | | | | |
Non-GAAP net loss | | $ | (6,296 | ) | | $ | (4,677 | ) | | $ | (3,025 | ) | | $ | (4,265 | ) | | $ | (4,454 | ) |
| | | | | | | | | | | | | | | | | | | | |
GAAP net income (loss) per share | | $ | 0.36 | | | $ | (0.11 | ) | | $ | (0.23 | ) | | $ | 0.17 | | | $ | (0.42 | ) |
Exclude: | | | | | | | | | | | | | | | | | | | | |
Restructuring costs | | $ | — | | | $ | — | | | $ | — | | | $ | 0.03 | | | $ | 0.03 | |
Stock-based compensation | | $ | 0.01 | | | $ | 0.01 | | | $ | — | | | $ | 0.02 | | | $ | 0.01 | |
Strategic costs | | $ | 0.01 | | | $ | — | | | $ | — | | | $ | 0.01 | | | $ | — | |
Discontinued operations, net of tax | | $ | (0.41 | ) | | $ | 0.05 | | | $ | 0.18 | | | $ | (0.26 | ) | | $ | 0.32 | |
Realized losses and other-than-temporary impairments of investments | | $ | — | | | $ | — | | | $ | 0.01 | | | $ | — | | | $ | 0.01 | |
Tax impact related to unusual transactions | | $ | (0.04 | ) | | $ | — | | | $ | — | | | $ | (0.02 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Non-GAAP net income (loss) per share | | $ | (0.07 | ) | | $ | (0.05 | ) | | $ | (0.04 | ) | | $ | (0.05 | ) | | $ | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Shares used in computing net income (loss) per share | | | 88,200 | | | | 86,146 | | | | 85,216 | | | | 86,354 | | | | 84,577 | |
Unwired Planet ReportsFourth Quarter 2012
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | June 30,
2012 | | | March 31,
2012 | | | June 30,
2011 | | | June 30,
2012 | | | June 30,
2011 | |
Operating activities: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 31,853 | | | $ | (9,537 | ) | | $ | (19,960 | ) | | $ | 14,567 | | | $ | (35,248 | ) |
Gain on sale of discontinued operation | | | (45,133 | ) | | | (5,161 | ) | | | — | | | | (50,294 | ) | | | (2,236 | ) |
Reconciling items: | | | | | | | | | | | | | | | | | | | | |
Depreciation, amortization of intangibles and stock-based compensation | | | 4,626 | | | | 3,857 | | | | 2,276 | | | | 12,416 | | | | 9,379 | |
Non-cash restructuring charges | | | 131 | | | | 161 | | | | 237 | | | | 691 | | | | 1,109 | |
Non-cash tax benefits | | | (3,790 | ) | | | — | | | | (3,411 | ) | | | (1,289 | ) | | | (3,411 | ) |
Provision for (recovery of) doubtful accounts | | | 38 | | | | (58 | ) | | | (183 | ) | | | 447 | | | | (351 | ) |
Other non-cash items, net | | | 534 | | | | 208 | | | | 300 | | | | 1,313 | | | | 1,347 | |
Realized losses and other-than-temporary impairments of investments | | | — | | | | — | | | | 645 | | | | — | | | | 921 | |
Changes in operating assets and liabilities | | | (8,676 | ) | | | 1,529 | | | | 15,973 | | | | (21,479 | ) | | | 7,005 | |
| | | | | | | | | | | | | | | | | | | | |
Net cash used for operating activities | | | (20,417 | ) | | | (9,001 | ) | | | (4,123 | ) | | | (43,628 | ) | | | (21,485 | ) |
| | | | | | | | | | | | | | | | | | | | |
Investing activities: | | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment, net | | | — | | | | (27 | ) | | | (876 | ) | | | (523 | ) | | | (4,045 | ) |
Payment of settlement related to discontinued operation | | | — | | | | — | | | | — | | | | (12,000 | ) | | | — | |
Sale of discontinued operation, net | | | 46,238 | | | | 5,161 | | | | — | | | | 51,399 | | | | 2,236 | |
Proceeds from sales and maturities of investments, net | | | (15,031 | ) | | | (2,876 | ) | | | — | | | | (4,709 | ) | | | 7,240 | |
Release of restricted cash and investments | | | — | | | | — | | | | (3,207 | ) | | | — | | | | 357 | |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used by) investing activities | | | 31,207 | | | | 2,258 | | | | (4,083 | ) | | | 34,167 | | | | 5,788 | |
| | | | | | | | | | | | | | | | | | | | |
Financing activities: | | | | | | | | | | | | | | | | | | | | |
Net proceeds from issuance of common stock | | | 1,093 | | | | 517 | | | | 749 | | | | 1,904 | | | | 2,028 | |
| | | | | | | | | | | | | | | | | | | | |
Cash provided by financing activities | | | 1,093 | | | | 517 | | | | 749 | | | | 1,904 | | | | 2,028 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase/(decrease) in cash and cash equivalents | | | 11,883 | | | | (6,226 | ) | | | (7,457 | ) | | | (7,557 | ) | | | (13,669 | ) |
Cash and cash equivalents at beginning of period | | | 27,826 | | | | 34,052 | | | | 54,723 | | | | 47,266 | | | | 60,935 | |
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period, including discontinued operations | | $ | 39,709 | | | $ | 27,826 | | | $ | 47,266 | | | $ | 39,709 | | | $ | 47,266 | |
| | | | | | | | | | | | | | | | | | | | |
Unwired Planet ReportsFourth Quarter 2012
| | |
For More Information: Investor Relations Mike Bishop The Blueshirt Group mike@blueshirtgroup.com Tel: 415-217-4968 | | Public Relations Vikki Herrera Unwired Planet Vikki.Herrera@unwiredplanet.com Tel: 650-480-6753 |
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