SOURCE: Internet Patents Corporation

November 05, 2012 16:15 ET

Internet Patents Corporation Reports Third Quarter 2012 Results

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  
                                 

Contact Information

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    The Blueshirt Group
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