Finjan Holdings Reports $5 Million In Q3 Licensing Revenue
License agreement provides for a payment of $8M, of which $5M recorded in Q3
$0.02 per share in net income
NEW YORK, Nov. 11, 2014 /PRNewswire/ -- Finjan Holdings, Inc. (NASDAQ: FNJN), a technology company committed to enabling innovation through the licensing of its intellectual property (IP), today provided an update on the Company's continued progress in executing its business strategy.
Q3 Financial Results
Revenues for the third quarter 2014 increased to $5.4 million compared to $0.4 million in the prior year quarter, while cost of revenues increased to $1.0 million compared to $0.3 million in the prior year quarter. Net income for the third quarter was $0.5 million or $0.02 per share. As of September 30, 2014, we held $20.4 million in cash and cash equivalents, and $20.2 million of working capital. We ended the third quarter 2014 reporting no long-term debt.
Shareholder Update
"Dear Fellow Shareholders,
Finjan reported its third quarter as our wholly owned subsidiary, Finjan, Inc., signed the Company's first IP license under new management. This license provides for a payment of $8 million in four installments, of which $5 million was recognized in the third quarter ended September 30, 2014. This agreement is an important milestone for Finjan as we create value for our shareholders and, more importantly, demonstrate management's proactive approach to protecting the value of our cybersecurity patent portfolio and future growth.
Also of note in this quarter and to emphasize the focus on our core business, Finjan's Board of Directors adopted a resolution authorizing the management to pursue the sale of our organic fertilizer business. Management is currently in the process of negotiating the sale of our subsidiary Converted Organics.
We remain committed to preserving and enhancing the value of our proprietary inventions, as well as protecting our existing licensing partners' investments in our portfolio, by offering fair value licenses to currently unlicensed companies.
Notwithstanding, as with each of our licensing/enforcement endeavors, and consistent with our Core Values and Best Practices, we are committed to working with companies and keeping our lines of communication open to identify a path to resolve our disputes through collaboration."
Sincerely,
Phil Hartstein, President and CEO.
Patent Enforcement Update
On November 5, 2014, we filed a patent infringement lawsuit against Palo Alto Networks (PAN), alleging infringement of certain claims of 10 of our patents. We made numerous attempts to have PAN join us in meaningful, good faith discussions to no avail. Despite our best efforts, PAN chose to ignore the opportunity to have a business discussion and instead chose litigation.
On October 20, 2014, we announced the outcome of the Markman hearing regarding our claims against Blue Coat Systems. The results of the hearing coincides with our infringement theories against Blue Coat allowing us to move forward without dropping any of our asserted patents, theories, or any of the accused products, thereby reinforcing our damages case against Blue Coat.
We have several important enforcement-related events currently scheduled in the coming months: The initial Case Management Conference in the Symantec case on November 20, 2014, the Markman hearing in the Sophos case on February 13, 2015, and in the Proofpoint case on May 8, 2015, as well as the trial in the Blue Coat case on July 20, 2015.
You can find more detailed information on all of our outstanding litigation in the "Legal Proceedings" portion in our most recent Form 10-Q filed with the SEC on November 11, 2014, which is accessible from Finjan's website at www.finjan.com. The court dockets for the foregoing cases are publicly available on the Public Access to Court Electronic Records (PACER) website, www.pacer.gov, which is operated by the Administrative Office of the U.S. Courts.
About Finjan Holdings
Through our subsidiary, Finjan, Inc., we own a portfolio of more than 40 issued and pending patents related to cybersecurity software that proactively detects malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Finjan's mission is to invest in innovation and encourage the development of core intellectual property. Founded in 1997, Finjan developed and patented technology that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based, basis, in contrast to signature-based methods of intercepting only known threats to computers, which were standard in the online security industry during the 1990's. For more information about Finjan, please visit www.finjan.com.
Follow Finjan Holdings on LinkedIn or on Twitter @FinjanHoldings.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding our expectations, intentions, beliefs, and projections about our future results, performance, prospects and opportunities. These statements can be identified by the fact that they do not relate strictly to historical or current facts or by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "potential," "should," "will," "will be," "would," the negative of these terms and similar expressions, but this is not an exclusive way of identifying such statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Our actual results, performance and achievements may differ materially from those expressed in, or implied by, the forward-looking statements contained in this press release as a result of various risks, uncertainties and other factors. Important factors that could cause our actual results to differ materially from our expectations include, without limitation, our ability to execute our business plan, the outcome of pending or future enforcement actions, our ability to expand our technology portfolio, the enforceability of our patents, the continued use of our technology in the market, the development of a liquid trading market for our securities and other factors described under Item 1A, "Risk Factors," as set forth in the Company's Annual Report on form 10-K filed with the SEC on March 14, 2014, and any subsequent quarterly or current reports.
The Company will continue to file annual, quarterly, and current reports; proxy statements and other information with the SEC. Forward-looking statements speak only as of the dates specified in such filings or releases. Except as expressly required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not undertake any obligation to update any forward-looking statements to reflect events or circumstances arising after any such date, whether as a result of new information or future events or otherwise. You should not place undue reliance on the forward-looking statements included in this release or that may be made elsewhere from time to time by us, or on our behalf. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
Investor Relations
Friederike Edelmann | Director Investor Relations | Finjan Holdings, Inc.
(646) 350-4999 | [email protected]
Thomas Walsh | Capital Markets Group LLC
(212) 398-3486 | [email protected]
Media and Press Relations
Katie Hepler | MWW Group
(212) 704-9727 | [email protected]
SOURCE Finjan Holdings, Inc.
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