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Internet Patents Corporation Reports Third Quarter 2012 Results

| November 6, 2012 | 0 Comments


SACRAMENTO, CA–(Marketwire – Nov 5, 2012) – Internet Patents Corporation ( NASDAQ : PTNT ) today reported financial results for the third quarter ended September 30, 2012. 

“During the third quarter we initiated two lawsuits against The General Automobile Insurance Services, Inc. and Active Network alleging infringement of U.S. Patent No. 7,707,505 entitled ‘Dynamic Tabs for a Graphical User Interface,’” said Hussein Enan, Chairman and CEO of Internet Patents Corporation. ”We also continue to pursue the lawsuits filed in the previous quarter alleging infringement of our Event Log patent, and we continue to review and identify other potential infringers of our strong portfolio of e-commerce patents.”

Operating Highlights

As of the quarter ended September 30, 2012:

  • In its third quarter of operating a patent licensing business, the Company reported a net loss for the quarter of $411,000 or $0.05 per share.
  • Total operating expenses of $473,000 were lower than the Company’s target range of $0.6 to $0.7 million. Management expects operating expenses for the foreseeable future to be between $0.5 million and $0.6 million per quarter.
  • Cash and cash equivalents and short-term investments were $33.9 million, which includes $1.0 million in restricted short-term investments. 
  • The number of shares of Internet Patents Corporation common stock issued and outstanding was 7,751,952. Options representing a total of 231,666 shares of common stock remain outstanding and exercisable as of that same date.
  • Net operating loss (NOL) carry forwards were approximately $140.6 million and $83.7 million for federal income tax and state income tax purposes, respectively. Included in these amounts are unrealized federal and state net operating loss deductions resulting from stock option exercises of approximately $10.1 million each. The benefit of these unrealized stock option-related deductions has not been included in deferred tax assets and will be recognized as a credit to additional paid-in capital when realized. Federal and state net operating loss carry forwards begin expiring in 2012.

About Internet Patents Corporation
Headquartered in Sacramento, CA, Internet Patents Corporation ( NASDAQ : PTNT ) operates a patent licensing business focused on its e-commerce technologies. www.internetpatentscorporation.net

Forward-Looking Statements

This news release contains forward-looking statements, which include statements expressing the intent, belief or current expectations of Internet Patents Corporation that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements. Actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with Internet Patent Corporation’s business, which include, but are not limited to: the unpredictable nature of patent licensing and patent litigation; potential changes in the laws and regulations relating to patents and patent litigation; the risk that we are not currently engaged in the patent licensing business, and our patent portfolio has never generated revenues; future changes we may make in our patent licensing strategy; and changes in the taxation of income due to the disallowance or expiration of the Company’s net operating losses. Unless legally required, Internet Patents Corporation undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company’s filings with the Securities and Exchange Commission.

 
 
INTERNET PATENTS CORPORATION
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
(in thousands)
 
(unaudited)
 
 
 
 
 
September 30,
2012

 
 
December 31, 2011
 
Assets
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
31,360
 
 
$
70,326
 
 
Short-term investments
 
 
1,495
 
 
 
1,225
 
 
Restricted short-term investments
 
 
1,000
 
 
 
-
   
Prepaid expenses and other current assets
 
 
385
 
 
 
1,374
 
 
 
Total current assets
 
 
34,240
 
 
 
72,925
 
Property and equipment, net
 
 
37
 
 
 
42
 
Other assets
 
 
27
 
 
 
1,027
 
 
 
Total assets
 
$
34,304
 
 
$
73,994
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
185
 
 
$
3,385
 
 
Accrued expenses and other current liabilities
 
 
239
 
 
 
541
 
 
Income tax payable
 
 
-
 
 
 
644
 
 
 
Total current liabilities
 
 
424
 
 
 
4,570
   
 
 
 
 
 
 
 
 
Income tax liability and other non-current liabilities
 
 
101
 
 
 
101
 
Total liabilities
 
 
525
 
 
 
4,671
 
 
 
 
 
 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
 
 
11
 
 
 
10
 
 
Paid-in capital
 
 
221,726
 
 
 
216,401
 
 
Treasury stock
 
 
(6,788
)
 
 
(6,589
)
 
Accumulated deficit
 
 
(181,170
)
 
 
(140,499
)
 
 
Total stockholders’ equity
 
 
33,779
 
 
 
69,323
 
 
 
Total liabilities and stockholders’ equity
  $
34,304
 
 
$
73,994
 
 
 
 
 
INTERNET PATENTS CORPORATION
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
(in thousands, except per share amounts)
 
(unaudited)
 
 
 
 
 
Three Months
Ended September 30,

 
 
Nine Months
Ended September 30,

 
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Sales and marketing
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
Technology
 
 
-
 
 
 
24
 
 
 
-
 
 
 
72
 
 
General and administrative
 
 
473
 
 
 
716
 
 
 
2,289
 
 
 
2,430
 
 
 
Total operating expenses
 
 
473
 
 
 
740
 
 
 
2,289
 
 
 
2,502
 
 
 
 
Loss from operations
 
 
(473
)
 
 
(740
)
 
 
(2,289
)
 
 
(2,502
)
Other income
 
 
1
 
 
 
1
 
 
 
169
 
 
 
11
 
Loss from continuing operations
 
 
(472
)
 
  (739
)
 
 
(2,120
)
 
 
(2,491
)
Discontinued operations, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from discontinued operations
 
 
-
 
 
 
1,240
 
 
 
-
 
 
 
4,269
 
Total discontinued operations
 
 
-
 
 
 
1,240
 
 
 
-
 
 
 
4,269
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) before income taxes
 
$
(472
)
 
$
501
 
 
$
(2,120
)
 
$
1,778
 
Income tax benefit
 
 
61
 
 
 
-
 
 
 
61
 
 
 
-
  Net income (loss)
 
$
(411
)
 
$
501
 
 
$
(2,059
)
 
$
1,778
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(0.05
)
 
$
(0.13
)
 
$
(0.27
)
 
$
(0.44
)
 
 
 
Discontinued operations, net of tax
 
$
-
 
 
$
0.21
 
 
$
-
 
 
$
0.75
 
Net income (loss) per basic common share
 
$
(0.05
)
 
$
0.08
 
  $
(0.27
)
 
$
0.31
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares used in computing per share amounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
 
7,752
 
 
 
5,777
 
 
 
7,629
 
 
 
5,663
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Filed Under: Internet News

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