BETHESDA, Md., Dec. 1, 2015 /PRNewswire/ -- Spherix Incorporated (Nasdaq: SPEX) -- an intellectual property development company committed to the fostering and monetization of intellectual property, today, in response to inquiries from investors, provided more detail on the current and prospective patent monetization and licensing initiatives.
Spherix no longer has a $5 million payment due on its "Series I" stock. The canceled payment had been previously due from the Company on or before December 31, 2015, and related to the redemption of its outstanding Series I Redeemable Convertible Preferred Stock. In addition, Spherix has further secured the cancellation of 13% of the Company's outstanding Series H Convertible Preferred Stock. Further information regarding recent changes to the Company's capital structure can be found in the Company's Form 8K previously filed with the SEC at the link: http://www.sec.gov/Archives/edgar/data/12239/000161577415003498/s102216_8k.htm
In addition, management is focused on the significant opportunity moving forward on its remaining 200+ patents. The total addressable market of the remaining opportunity exceeds $50-plus billion and the Company will seek to recover a fair and reasonable licensing rate from the remaining total addressable market.
Market estimates below are based on published reports from International Data Corporation, Infonetics Research and Spherix's internal projections. International Data Corporation is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. The remaining addressable market of $50-plus billion can be broken down into the following categories:
- Service Provider Switch Original Equipment Manufacturers ("OEMs"), a $25 billion addressable market for the Company consisting of layer 2/3 switches used by Internet service providers and carriers to implement their networks.
- Service Provider Router OEMs, a $ 20 billion addressable market for the Company consisting of routers used by Internet service providers and carriers to implement their networks.
- Optical Network Equipment OEMs, a $ 19 billion addressable market for the Company consisting of equipment such as optical multiplexers and optical switches.
- Additional potential licensees include Service Providers that implement wide area networks to provide services to consumers such as Internet service providers, cable TV operators, VoIP providers, cloud service providers and wireless carriers. The total addressable market estimate by the Company does not include the size of this significant market.
- Other potential licensees include Network Equipment OEMs and Service Providers consists of passive optical networking equipment, mobile carrier equipment, VoIP equipment and Wi-Fi routers. This market is also incremental to the total addressable market estimates provided by the Company.
Anthony Hayes, Chief Executive Officer of Spherix, commented, "As set forth in our most recent 8K filing, we now move forward as a Company free and clear of the $5 million dollar debt that was due in December and unconstrained by any security liens on our patents. That is a significant achievement for the Company. And, as previously indicated, we have just begun to address the significant licensing opportunity for our patents. We have identified a large list of potential licensees, and efforts are underway to monetize the Company's opportunities. With a more sound financial footing, and a favorable Markman Order granted by the Eastern District of Texas court that is applicable to some of the potential licensees, we are excited to move forward."
Spherix is committed to advancing innovation by active participation in all areas of the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation. Spherix has acquired over 100 patents from Rockstar Consortium Inc., and several hundred patents issued to Harris Corporation, covering a variety of methods and components involved in switching, routing, networking, optical and telephone technologies, as well as in the wireless communications and telecommunication sectors.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Spherix Incorporated