SOURCE: Internet Patents Corporation

May 03, 2013 06:30 ET

Internet Patents Corporation Reports First Quarter 2013 Results

SACRAMENTO, CA--(Marketwired - May 3, 2013) - Internet Patents Corporation ("IPC") (NASDAQ: PTNT) today reported financial results for the first quarter ended March 31, 2013.

"We currently have patent infringement lawsuits in progress against six companies, two of which are alleged to infringe our Event Log patent, and four of which are alleged to infringe our Dynamic Tabs patent," said Hussein Enan, Chairman and CEO of Internet Patents Corporation. "While we did not file any additional patent infringement lawsuits during the first quarter, we continue to review and identify other potential infringers of our strong portfolio of e-commerce patents and expect to take additional actions in 2013."

Operating Highlights
As of the quarter ended March 31, 2013:

  • The Company reported a net loss for the first quarter of 2013 of $451,000, or $0.06 per share.
  • Total operating expenses of $456,000 was lower than the Company's target range of $0.6 to $0.8 million. This was due to the Company incurring lower patent litigation costs than anticipated. We expect operating expenses for the foreseeable future to range between $0.5 million and $0.7 million per quarter.
  • Cash and cash equivalents and short-term investments were $33.0 million, which includes $1.0 million in restricted cash equivalents.
  • The number of shares of Internet Patents Corporation common stock issued and outstanding was 7,751,952. Options representing a total of 114,560 shares of common stock remain outstanding and exercisable as of that same date.
  • Net operating loss (NOL) carry forwards were approximately $141.3 million and $63.2 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 $6.7 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 or have begun expiring in 2019 and 2013 respectively.

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)  
   
    March 31,
2013
    December 31,
2012
 
Assets                
Current assets:                
  Cash and cash equivalents   $ 30,527     $ 31,068  
  Short-term investments     1,493       1,497  
  Restricted cash equivalents and short-term investments     1,000       1,000  
  Prepaid expenses and other current assets     148       169  
    Total current assets     33,168       33,734  
Property and equipment, net     27       32  
Other assets     27       27  
    Total assets   $ 33,222     $ 33,793  
                 
Liabilities and stockholders' equity                
Current liabilities:                
  Accounts payable   $ 149     $ 234  
  Accrued expenses     312       346  
    Total current liabilities     461       580  
                 
Income tax liability     101       101  
Total liabilities     562       681  
                 
Stockholders' equity:                
  Common stock     11       11  
  Paid-in capital     221,726       221,726  
  Treasury stock     (6,788 )     (6,788 )
  Unrealized loss on available-for-sale securities     (1 )     -  
  Accumulated deficit     (182,288 )     (181,837 )
    Total stockholders' equity     32,660       33,112  
    Total liabilities and stockholders' equity   $ 33,222     $ 33,793  
                     
                     
   
INTERNET PATENTS CORPORATION  
   
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
   
(in thousands, except per share amounts)  
(unaudited)  
   
    Three Months Ended March 31,  
    2013     2012  
                 
Total revenues   $ -     $ -  
                 
Operating expenses:                
  General and administrative     456       837  
    Total operating expenses     456       837  
      Loss from operations     (456 )     (837 )
Other income     5       100  
Net loss   $ (451 )   $ (737 )
                 
Net loss per share:                
  Basic and diluted   $ (0.06 )   $ (0.10 )
                 
Shares used in computing net loss per share:                
  Basic and diluted     7,752       7,379  
                   
                   

Contact Information

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    415-217-5866
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