TMCnet News
Network-1 Reports 2014 Year-End Financial ResultsNEW YORK, March 5, 2015 /PRNewswire/ -- Network-1 Technologies, Inc. (NYSE MKT: NTIP), a company specializing in the development, licensing, and protection of its intellectual property assets, today announced financial results for the year ended December 31, 2014. Network-1 had revenue of $12,309,000 for the year ended December 31, 2014 ("2014") as compared to revenue of $8,017,000 for the year ended December 31, 2013 ("2013"). The increase in revenue of $4,292,000 or 53.5% for 2014 was due to increased royalty revenue from our licensees, which included $3,281,000 of additional royalty payments from Cisco Systems as a result of Network-1's audit of its license agreement with Cisco. Exclusive of royalty revenue from the Cisco audit, royalty revenue from licensees for 2014 increased $1,011,000 or 12.6% to $9,028,000 as compared to $8,017,000 for 2013. Network-1 reported net income of $1,766,000 or $0.07 per share (basic and diluted) for 2014 as compared to net income of $1,016,000 or $0.04 per share (basic and diluted) for 2013. Included in the results for 2014 and 2013 are non-cash stock-based compensation expenses of $333,000 and $390,000, respectively, and non-cash amortization expense of $1,650,000 and $1,008,000, respectively. The increase in amortization expense in 2014 was due to Network-1's acquisition of thirteen (13) additional patents during 2013. Network-1 also accrued contingent patent costs of $900,000 with respect to a contingent payment relating to the purchase of its Remote Power Patent. "It was a tremendous year for Network-1," commented Corey M. Horowitz, Chairman and CEO of Network-1. "We have sixteen (16) licensees for our Remote Power Patent, twelve (12) of which generate on-going royalties for Network-1. Significantly, during the year our Remote Power Patent's validity was affirmed by the United States Patent and Trademark Office in two separate proceedings which we believe will facilitate additional licensing opportunities. In addition, the development and monetization activities involving our Mirror Worlds and Cox Portfolios are proceeding well. The combination of our cash position, our profitable royalty stream and our diverse and valuable IP portfolio positions us very well going forward in the IP development and monetization space." The following are financial and strategic highlights:
Consistent with its activities over the past several years, Network-1 plans on continuing its licensing activities relating to the Remote Power Patent and the development and monetization of the Mirror Worlds Patent Portfolio and the Cox Patent Portfolio. In addition, Network-1 may acquire additional intellectual property assets in the future to develop, commercialize, license or otherwise monetize such intellectual property. In this regard, Network-1 continually reviews opportunities to acquire or license additional intellectual property for the purpose of pursuing licensing opportunities related to its existing intellectual property portfolio or otherwise. Network-1's strategy includes working with inventors and patent owners to assist in the development and monetization of their patented technologies. Network-1 may also enter into strategic relationships with third parties to develop, commercialize, license or otherwise monetize their intellectual property. The form of such relationships may differ depending upon the opportunity and may include, among other things, a strategic investment in such third party, the provision of financing to such third party or the formation of a joint venture with such third party or others for the purpose of monetizing their intellectual property assets. 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-four (24) 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. Network-1'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, 2014 filed with the Securities and Exchange Commission, 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, 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 The condensed statements of operations and condensed balance sheet are attached.
Condensed Balance Sheet as of December 31, 2014
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/network-1-reports-2014-year-end-financial-results-300046418.html SOURCE Network-1 Technologies, Inc. |