|[November 14, 2012]
Vringo Announces Third Quarter Results and Recent Highlights
NEW YORK --(Business Wire)--
Vringo, Inc. (NYSE MKT: VRNG), a company engaged in the innovation,
development, and monetization of mobile technologies and intellectual
property, today announced operating results for the third quarter of
2012 and subsequent events.
"I am very pleased with the accomplishments of the third quarter and
what we have achieved so far in fourth quarter. In the less than five
month period since we closed our merger with Innovate/Protect, we have
strengthened Vringo's balance sheet, acquired multiple marquee patent
portfolios, initiated action against ZTE's UK subsidiary, continued to
develop new technology and intellectual property, and received a jury
verdict in I/P Engine's against Google (News - Alert), AOL and others. I am excited to
continue to build on these accomplishments and expand the company," said
Andrew D. Perlman, Chief Executive Officer of Vringo.
Third Quarter Highlights and Subsequent Events
Completed merger with Innovate/Protect.
Acquired over five hundred patents and patent applications relating to
Acquired a portfolio of intellectual property from quantumStream
Systems Inc. and Sprout (News - Alert) IP LLC relating to the placement of
advertisements on web pages via a bidding process.
Filed nine provisional patent applications created by Ken Lang,
President and Chief Technology Officer of Vringo, covering a wide
range of technologies.
Continued to build on our existing patents by filing twelve
continuations and a continuation-in-part application in our telecom
Filed a patent infringement lawsuit in the United Kingdom against a
subsidiary of ZTE Corporation on three patents declared essential to
European Telecommunications and Standards Institute (ETSI (News - Alert)). The
complaint accuses certain ZTE network products and ZTE GSM/UMTS
multi-mode wireless handsets of infringing our patents.
Concluded a three-week jury trial in litigation against Google, AOL (News - Alert)
and others in U.S. District Court, Eastern District of Virginia,
Norfolk Division, where the jury found that the asserted claims of the
patents-in-suit were both valid and infringed, and that reasonable
royalty damages should be based on a running royalty.
Signed final agreement with Neomobile, a major mobile entertainment
service provider in Italy, for a launch of a jointly developed Android
subscription product before the end of 2012.
Released updated versions of th Facetones product to add support for
all Android devices running on OS 4.0, known also as "Ice Cream
Raised significant additional capital and repaid remaining
non-operating debt, thereby strengthening the company's balance sheet.
As of the close of business on November 14, 2012, we had over $60
million of cash on hand. We expect these funds will be sufficient to
support our current operations and allow timely execution of our
current business plans.
Net loss for the third quarter was $3.1 million, mainly attributable
to a non-operating income of $7.2 million, recorded in connection with
the decrease in fair value of warrants, which are classified as a
derivative liability, as well as by the impact of non-cash share based
compensation expense of $5.4 million.
In the third quarter of 2012, following the consummation of the
merger, we recorded total revenues of $266 thousand. The recognized
revenue consisted of: Vringo mobile-based product revenue of $76
thousand from the date of the merger, through September 30, 2012, and
revenue from a development project of $90 thousand and proceeds from
partial settlement of a litigation, in the total amount of $100
On a per share basis, our net loss fell by 83% to a net loss of $0.06
per basic share, compared to a loss of $0.36 per basic share,
presented by Vringo in the second quarter. The decrease in basic loss
per share was mostly due to an increase in the number of shares, and a
decrease in the fair value of warrants classified as a long-term
derivative liability, partly offset by increased costs reflecting the
post-merger operations of the combined company.
Conference Call Information
Date: Wednesday, November 14, 2012
Time: 5:00 p.m. Eastern (Vringo
recommends dialing in ten minutes in advance)
International: (201) 604-0169
shortly after conclusion): (888) 632-8973 or (201) 499-0429
About Vringo, Inc.
Vringo, Inc. is engaged in the innovation, development and monetization
of mobile technologies and intellectual property. Vringo's intellectual
property portfolio consists of over 500 patents and patent applications
covering telecom infrastructure, internet search, and mobile
technologies. The patents and patent applications have been developed
internally, and acquired from third parties. Vringo operates a global
platform for the distribution of mobile social applications and services
including Facetones® and Video Ringtones which transform the basic act
of making and receiving mobile phone calls into a highly visual, social
experience. For more information, visit: www.vringoIP.com.
This press release includes forward-looking statements, which may be
identified by words such as "believes," "expects," "anticipates,"
"estimates," "projects," "intends," "should," "seeks," "future,"
"continue," or the negative of such terms, or other comparable
terminology. Forward-looking statements are statements that are not
historical facts. Such forward-looking statements are subject to risks
and uncertainties, which could cause actual results to differ materially
from the forward-looking statements contained herein. Factors that could
cause actual results to differ materially include, but are not limited
to: the inability to realize the potential value created by the merger
with Innovate/Protect for our stockholders; our inability to raise
additional capital to fund our combined operations and business plan;
our inability to monetize and recoup our investment with respect to
patent assets that we acquire; our inability to maintain the listing of
our securities on the NYSE MKT; the potential lack of market acceptance
of our products; our inability to protect our intellectual property
rights; potential competition from other providers and products; our
inability to license and monetize the patents owned by Innovate/Protect,
including the outcome of the litigation against online search firms and
other companies; our inability to monetize and recoup our investment
with respect to patent assets that we acquire; and other risks and
uncertainties and other factors discussed from time to time in our
filings with the Securities and Exchange Commission ("SEC (News - Alert)"), including
our quarterly report on Form 10-Q filed with the SEC on August 14, 2012.
Vringo expressly disclaims any obligation to publicly update any
forward-looking statements contained herein, whether as a result of new
information, future events or otherwise, except as required by law.
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