Potential for royalty receipts to be a new and healthy revenue stream
Navi Mumbai, Maharashtra -- (SBWIRE) -- 09/06/2013 -- On August 8, 2013, mobile app developer Vringo Inc. reported a Q2 net loss of approximately $11 million or $0.13 per basic share for the 3 months ended June 30, 2013. This compares with net losses of $12 million for the first quarter & $14 million for the fourth quarter of the earlier year. Cash used in operations together with non-cash costs were cited to be main reasons behind the Q2 loss.
Going forward, we should see a noticeable reduction in this loss as the litigation proceedings unfold. In its order on August 16, 2013, the District Court ruled that I/P Engine, Vringo’s subsidiary, is entitled to an award of a post-judgment royalty. The amount of this royalty would be determined post additional discovery and briefing. In addition, I/P Engine would be receiving such royalties on a quarterly basis.
Vringo also has a strong balance sheet. At their Q4 earnings call, CEO Andrew Perlman spoke about capital raised last year through a small and select group of investors. He noted “these investors provided the capital needed to acquire telecom infrastructure portfolio and to actively begin monetizing the patents”.
Vringo’s cash and short-term investment balance stood at approximately $46 million as of June 30, 2013 versus over $49 million as on May 9, 2013.
Along with the CEO’s observations at the Q4 earnings call, Vringo’s management also conducted a detailed question and answer session with industry analysts. The complete transcript of this event can be found at EarningsImpact.com.
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