Welcome!

News Feed Item

Network-1 Reports Second Quarter 2014 Results

NEW YORK, Aug. 12, 2014 /PRNewswire/ -- Network-1 Technologies, Inc. (OTC BB: NTIP) today announced financial results for the quarter ended June 30, 2014. 

Network-1 had revenue of $5,166,000 and $9,657,000 for the three and six months ended June 30, 2014, respectively, as compared to revenue of $1,907,000 and $5,971,000 for the three and six months ended June 30, 2013, respectively.  Included in revenue for the three and six months ended June 30, 2014 is $3,281,000 of additional royalties from Cisco Systems as a result of the Company's audit of the May 2011 license agreement with Cisco.  The additional royalties cover the years 2012 and 2013 and other periods subject to the license agreement.

Network-1 reported net income of $1,601,000 or $0.06 per share (basic) and (diluted) for the second quarter ended June 30, 2014 as compared to net income of $782,000 or $0.03 per share (basic) and (diluted) for the second quarter ended June 30, 2013.

Network-1 reported net income for the six months ended June 30, 2014 of $2,997,000 or $0.12 per share (basic) and $0.11 per share (diluted), compared with net income of $2,174,000 or $0.09 per share (basic) and $0.08 per share (diluted) for the six months ended June 30, 2013. 

At June 30, 2014, the Company had net operating loss carry forwards (NOLs) totaling approximately $22,855,000 expiring through 2029, with a future tax benefit of approximately $7,771,000.  During the six month period ended June 30, 2014 as a result of income before taxes for the period of $4,665,000, the deferred tax asset was reduced by $1,566,000 to $4,093,000.

At June 30, 2014, the Company's principal sources of liquidity consisted of cash and cash equivalents of approximately $16.6 million and working capital of approximately $21 million.

"It was a great quarter for Network-1," commented Corey M. Horowitz, Chairman and CEO of Network-1.  "We successfully completed our royalty audit of Cisco which resulted in our receiving significant additional royalties under our license agreement and, importantly, the validity of the Remote Power Patent was confirmed by the United States Patent Office in the Inter Partes Review proceeding initiated by Avaya and joined by HP, Dell and Sony," he added.  "During the quarter, we also received an additional patent relating to the Cox patent portfolio and we began our monetization efforts of that portfolio thereby continuing to expand upon our goal of diversifying our IP monetization efforts across our several valuable portfolios."

On April 4, 2014, Network-1 initiated litigation against Google and YouTube in the United States District Court for the Southern District of New York for infringement of several of its patents within Network-1's Cox patent portfolio which relates to the identification of media content on the Internet.  The lawsuit alleges that Google and YouTube have infringed and continue to infringe certain of Network-1's patents by making, using, selling and offering to sell unlicensed systems and related products and services, which include YouTube's Content ID system.

ABOUT NETWORK-1 TECHNOLOGIES, INC.

Network-1 Technologies, Inc. is engaged in the development, licensing and protection of its intellectual property and proprietary technologies.  Network-1 works with inventors and patent owners to assist in the development and monetization of their patented technologies. Network-1 currently owns twenty-two (22) patents covering various telecommunications and data networking technologies as well as technologies relating to document stream operating systems and the identification of media content.  Network-1's current strategy includes continuing to pursue licensing opportunities for its Remote Power Patent and its efforts to monetize two patent portfolios (the Cox and Mirror Worlds patent portfolios) acquired by Network-1 in 2013.  The Company's acquisition strategy is to focus on acquiring high quality patents which management believes have the potential to generate significant licensing opportunities as Network-1 has achieved with respect to its Remote Power Patent.  

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and conditions concerning Network-1's business plans. Such statements are subject to a number of risk factors and uncertainties as disclosed in the Network-1's Annual Report on Form 10-K for the year ended December 31, 2013 and its Quarterly Report on Form 10-Q for the three months ended March 31, 2014 including, among others, the continued validity of Network-1's Remote Power Patent, the ability of Network-1 to successfully execute its strategy to acquire high quality patents with significant licensing opportunities, Network-1's ability to achieve revenue and profits from the Mirror Worlds Patent Portfolio and the Cox Patent Portfolio as well as intellectual property it may acquire in the future, the ability of Network-1 to enter into additional license agreements, the ability of Network-1 to continue to receive material royalties from its existing license agreements for its Remote Power Patent, the uncertainty of patent litigation, risks related to the reexamination proceeding involving Network-1's Remote Power Patent pending at the United States Patent and Trademark Office, the difficulty in Network-1 verifying royalty amounts owed to it by its licensees, Network-1's ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property, the continued viability of the PoE market, future economic conditions and technology changes and legislative, regulatory and competitive developments. Except as otherwise required to be disclosed in periodic reports, Network-1 expressly disclaims any future obligation or undertaking to update or revise any forward-looking statement contained herein.


Corey M. Horowitz, Chairman and CEO

Network-1 Technologies, Inc.

(212) 829-5770

The condensed statements of operations and condensed balance sheet are attached.

 

Network-1 Technologies, Inc.

Condensed Statements of Operations



Three Months Ended
June 30,


Six Months Ended
June 30, 


2014


2013


2014


2013









ROYALTY REVENUE

$  5,166,000


$ 1,907,000


$   9,657,000


$           5,971,000

COST OF REVENUE

1,506,000


547,000


2,820,000


1,772,000

    GROSS PROFIT

3,660,000


1,360,000


6,837,000


4,199,000

OPERATING EXPENSES:








   General and Administrative

615,000


533,000


1,213,000


1,196,000

   Depreciation and Amortization

409,000


234,000


818,000


249,000

   Non-Cash Compensation

135,000


144,000


162,000


256,000









                TOTAL OPERATING EXPENSES

1,159,000


911,000


2,193,000


1,701,000









OPERATING INCOME

2,501,000


449,000


4,644,000


2,498,000

























OTHER INCOME (EXPENSES):








   Interest income, net

12,000


12,000


21,000


18,000

























INCOME BEFORE INCOME TAXES

2,513,000


461,000


4,665,000


2,516,000

















INCOME TAXES (BENEFIT)








   Current

57,000


(22,000)


102,000


26,000

   Deferred

855,000


(299,000)


1,566,000


316,000

   Total Income Taxes (Benefits)

912,000


(321,000)


1,668,000


342,000









NET INCOME

$   1,601,000


$    782,000


$      2,997,000


$          2,174,000

















Net Income per share








     Basic

$         0.06


$         0.03


$                0.12


$                   0.09









     Diluted

$         0.06


$         0.03


$                0.11


$                   0.08

















Weighted average number of common shares outstanding:








     Basic

25,484,978


25,181,736


25,629,473


25,098,074

     Diluted

27,496,232


27,087,061


27,689,150


27,396,414









NET INCOME

$  1,601,000


$    782,000


$   2,997,000


$          2,174,000









OTHER COMPREHENSIVE INCOME NET OF TAX:    Unrealized (loss) arising during period

 

(    4,000)


 

(9,000)


 

(     10,000)


 

(14,000)









COMPREHENSIVE INCOME

 

$   1,597,000


$    773,000


$    2,987,000


$           2,160,000

 

Condensed Balance Sheet as of June 30, 2014




Cash and cash equivalents

$ 16,579,000



   Total current assets

$  22,442,000



   Total assets

$ 31,298,000



   Total current liabilities

$   1,791,000



   Total long term liabilities

$  -0- 



   Total stockholders' equity

$29,507,000



SOURCE Network-1 Technologies, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.