Delaware | 001-35146 | 26-2990113 | ||
(State or other Jurisdiction of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
One Market Plaza | |
Suite 800 | |
San Francisco, CA 94105 | |
(Address of principal executive offices, including zip code) | |
(866) 779-7641 | |
(Registrant’s telephone number, including area code) |
(Former Name or Former Address, if Changed Since Last Report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press release issued by RPX Corporation dated February 11, 2014 |
RPX Corporation | ||
By: | /s/ MARTIN E. ROBERTS | |
Martin E. Roberts | ||
General Counsel | ||
• | Subscription revenue for the fourth quarter of fiscal 2013 was $57.9 million, up 18% compared to $48.9 million in the prior year period |
• | Subscription revenue for fiscal 2013 totaled $224.7 million, up 21% compared to $185.6 million for fiscal 2012 |
• | Revenue for the fourth quarter of fiscal 2013 totaled $60.3 million, up 17% compared to $51.6 million in the prior year period |
• | Revenue for fiscal 2013 totaled $237.5 million, up 20% compared to $197.7 million for fiscal 2012 |
Subscription revenue[2] | $60.8 - $61.3 million | |
Fee-related revenue | $1.1 million | |
Total revenue | $61.9 - $62.4 million | |
Net income (non-GAAP) | $11.8 - $12.4 million | |
Effective tax rate (non-GAAP) | 36% | |
Pro forma weighted-average diluted shares outstanding | 54.3 million |
Subscription revenue[2] | $246 - $258 million | |
Fee-related revenue | $8 - $10 million | |
Total revenue | $254 - $268 million | |
Cost of revenue (non-GAAP) | $120 - $124 million | |
SG&A (non-GAAP) | $51 - $55 million | |
Net income (non-GAAP) | $53 - $57 million | |
Effective tax rate (non-GAAP) | 36% | |
Pro forma weighted-average diluted shares outstanding | 54.6 million | |
Net acquisition spend | $135 million |
Investor Relations | Media Relations |
JoAnn Horne | Kaustuva Das |
Market Street Partners | RPX Corporation |
+1-415-445-3233 | +1-415-529-3105 |
ir@rpxcorp.com | media@rpxcorp.com |
RPX Corporation | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenue | $ | 60,275 | $ | 51,557 | $ | 237,504 | $ | 197,688 | |||||||
Cost of revenue | 32,641 | 21,815 | 110,771 | 82,323 | |||||||||||
Selling, general and administrative expenses | 16,732 | 13,687 | 62,525 | 53,590 | |||||||||||
(Gain) loss on sale of patent assets, net | — | — | 126 | (177 | ) | ||||||||||
Operating income | 10,902 | 16,055 | 64,082 | 61,952 | |||||||||||
Other income, net | 43 | 25 | 213 | 117 | |||||||||||
Income before provision for income taxes | 10,945 | 16,080 | 64,295 | 62,069 | |||||||||||
Provision for income taxes | 3,951 | 5,982 | 23,512 | 23,112 | |||||||||||
Net income | $ | 6,994 | $ | 10,098 | $ | 40,783 | $ | 38,957 | |||||||
Net income available to common stockholders: | |||||||||||||||
Basic | $ | 6,994 | $ | 10,080 | $ | 40,763 | $ | 38,455 | |||||||
Diluted | $ | 6,994 | $ | 10,080 | $ | 40,763 | $ | 38,474 | |||||||
Net income available to common stockholders per common share: | |||||||||||||||
Basic | $ | 0.13 | $ | 0.20 | $ | 0.78 | $ | 0.77 | |||||||
Diluted | $ | 0.13 | $ | 0.19 | $ | 0.76 | $ | 0.74 | |||||||
Weighted-average shares used in computing net income available to common stockholders per common share: | |||||||||||||||
Basic | 52,562 | 50,824 | 51,956 | 49,766 | |||||||||||
Diluted | 54,296 | 52,017 | 53,652 | 51,802 |
RPX Corporation | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 100,155 | $ | 73,638 | |||
Short-term investments | 190,567 | 126,092 | |||||
Restricted cash | 364 | — | |||||
Accounts receivable | 38,477 | 25,144 | |||||
Other receivables | — | 33,775 | |||||
Prepaid expenses and other current assets | 10,546 | 5,237 | |||||
Deferred tax assets | 8,177 | 7,658 | |||||
Total current assets | 348,286 | 271,544 | |||||
Patent assets, net | 219,954 | 199,314 | |||||
Property and equipment, net | 4,667 | 3,144 | |||||
Intangible assets, net | 1,718 | 3,226 | |||||
Goodwill | 16,460 | 16,460 | |||||
Restricted cash, less current portion | 1,454 | — | |||||
Other assets | 622 | 279 | |||||
Total assets | $ | 593,161 | $ | 493,967 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 332 | $ | 568 | |||
Accrued liabilities | 8,784 | 7,206 | |||||
Deferred revenue | 131,808 | 101,249 | |||||
Deferred payment obligations | 500 | 500 | |||||
Other current liabilities | 1,638 | 1,813 | |||||
Total current liabilities | 143,062 | 111,336 | |||||
Deferred revenue, less current portion | 5,935 | 3,122 | |||||
Deferred tax liabilities | 16,014 | 18,108 | |||||
Other liabilities | 3,227 | 1,142 | |||||
Total liabilities | 168,238 | 133,708 | |||||
Stockholders’ equity: | |||||||
Common stock | 5 | 5 | |||||
Additional paid-in capital | 305,343 | 281,530 | |||||
Retained earnings | 119,527 | 78,744 | |||||
Accumulated other comprehensive income (loss) | 48 | (20 | ) | ||||
Total stockholders’ equity | 424,923 | 360,259 | |||||
Total liabilities and stockholders’ equity | $ | 593,161 | $ | 493,967 |
RPX Corporation | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 40,783 | $ | 38,957 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 108,629 | 83,137 | |||||
Stock-based compensation | 16,115 | 10,334 | |||||
Excess tax benefit from stock-based compensation | (3,857 | ) | (8,574 | ) | |||
Imputed interest on deferred payment obligations | — | 94 | |||||
(Gain) loss on sale of patent assets | 126 | (177 | ) | ||||
Amortization of premium on investments | 6,013 | 5,131 | |||||
Deferred taxes | (3,302 | ) | 1,477 | ||||
Other | 116 | 12 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (13,333 | ) | (8,984 | ) | |||
Other receivables | 33,775 | (33,775 | ) | ||||
Prepaid expenses and other assets | (9,376 | ) | 8,667 | ||||
Accounts payable | (236 | ) | (253 | ) | |||
Accrued and other liabilities | 3,648 | (711 | ) | ||||
Deferred revenue | 33,372 | (3,958 | ) | ||||
Net cash provided by operating activities | 212,473 | 91,377 | |||||
Cash flows from investing activities | |||||||
Purchases of investments classified as available-for-sale | (210,660 | ) | (185,582 | ) | |||
Maturities of investments classified as available-for-sale | 147,052 | 188,026 | |||||
Sales of investments classified as available-for-sale | 1,099 | — | |||||
Business acquisition | — | (45,765 | ) | ||||
(Increase) decrease in restricted cash | (1,818 | ) | 647 | ||||
Purchases of intangible assets | — | (64 | ) | ||||
Purchases of property and equipment | (2,880 | ) | (1,726 | ) | |||
Acquisitions of patent assets | (127,101 | ) | (87,366 | ) | |||
Proceeds from sale of patent assets | 100 | 200 | |||||
Net cash used in investing activities | (194,208 | ) | (131,630 | ) | |||
Cash flows from financing activities | |||||||
Repayments of principal on deferred payment obligations | — | (5,150 | ) | ||||
Proceeds from other obligations | — | 500 | |||||
Proceeds from exercise of stock options and other common stock issuances | 5,151 | 3,218 | |||||
Tax withholdings related to net share settlements of restricted stock units | (756 | ) | — | ||||
Excess tax benefit from stock-based compensation | 3,857 | 8,574 | |||||
Net cash provided by financing activities | 8,252 | 7,142 | |||||
Net increase (decrease) in cash and cash equivalents | 26,517 | (33,111 | ) | ||||
Cash and cash equivalents at beginning of period | 73,638 | 106,749 | |||||
Cash and cash equivalents at end of period | $ | 100,155 | $ | 73,638 |
RPX Corporation | |||||||||||||||
Reconciliation of Pro Forma Net Income Per Share | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 6,994 | $ | 10,098 | $ | 40,783 | $ | 38,957 | |||||||
Pro forma net income per share: | |||||||||||||||
Basic | $ | 0.13 | $ | 0.20 | $ | 0.78 | $ | 0.77 | |||||||
Diluted | $ | 0.13 | $ | 0.19 | $ | 0.76 | $ | 0.74 | |||||||
Shares used in computing pro forma net income per share: | |||||||||||||||
Basic: | |||||||||||||||
Basic weighted-average common shares | 52,562 | 50,824 | 51,956 | 49,766 | |||||||||||
Add: Restricted stock | 3 | 91 | 25 | 649 | |||||||||||
Shares used in computing pro forma basic net income per share | 52,565 | 50,915 | 51,981 | 50,415 | |||||||||||
Diluted: | |||||||||||||||
Diluted weighted-average common shares | 54,296 | 52,017 | 53,652 | 51,802 | |||||||||||
Add: Restricted stock | 3 | 91 | 25 | 649 | |||||||||||
Shares used in computing pro forma diluted net income per share | 54,299 | 52,108 | 53,677 | 52,451 |
RPX Corporation | |||||||||||||||
Reconciliation of GAAP to Pro Forma Non-GAAP Net Income Per Share | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 6,994 | $ | 10,098 | $ | 40,783 | $ | 38,957 | |||||||
Stock-based compensation[1] | 4,136 | 2,873 | 16,589 | 10,683 | |||||||||||
Amortization of acquired intangible assets[2] | 349 | 360 | 1,418 | 1,192 | |||||||||||
Income tax adjustments[3] | (1,737 | ) | (1,061 | ) | (6,094 | ) | (3,750 | ) | |||||||
Non-GAAP net income | $ | 9,742 | $ | 12,270 | $ | 52,696 | $ | 47,082 | |||||||
Pro forma non-GAAP net income per share: | |||||||||||||||
Basic | $ | 0.19 | $ | 0.24 | $ | 1.01 | $ | 0.93 | |||||||
Diluted | $ | 0.18 | $ | 0.24 | $ | 0.98 | $ | 0.90 | |||||||
Shares used in computing pro forma net income per share: | |||||||||||||||
Basic | 52,565 | 50,915 | 51,981 | 50,415 | |||||||||||
Diluted | 54,299 | 52,108 | 53,677 | 52,451 |
RPX Corporation | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Cost of Revenue | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Cost of revenue | $ | 32,641 | $ | 21,815 | $ | 110,771 | $ | 82,323 | |||||||
Amortization of acquired intangible assets[2] | (55 | ) | (55 | ) | (223 | ) | (223 | ) | |||||||
Non-GAAP cost of revenue | $ | 32,586 | $ | 21,760 | $ | 110,548 | $ | 82,100 |
RPX Corporation | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Selling, General and Administrative Expenses | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Selling, general and administrative expenses | $ | 16,732 | $ | 13,687 | $ | 62,525 | $ | 53,590 | |||||||
Stock-based compensation[1] | (4,136 | ) | (2,873 | ) | (16,589 | ) | (10,683 | ) | |||||||
Amortization of acquired intangible assets[2] | (294 | ) | (305 | ) | (1,195 | ) | (969 | ) | |||||||
Non-GAAP selling, general and administrative expenses | $ | 12,302 | $ | 10,509 | $ | 44,741 | $ | 41,938 |
RPX Corporation | ||||||||
Additional Metrics | ||||||||
(in thousands, except client and headcount data) | ||||||||
(unaudited) | ||||||||
As of and for the Three Months Ended December 31, | ||||||||
Operating Metrics | 2013 | 2012 | ||||||
Number of clients | 168 | 140 | ||||||
Net additions | 8 | 12 | ||||||
Trailing four quarters | 28 | 28 | ||||||
Gross acquisition spend | $ | 41,100 | $ | 104,360 | ||||
Trailing four quarters | $ | 132,251 | $ | 251,800 | ||||
Net acquisition spend | $ | 40,350 | $ | 23,160 | ||||
Trailing four quarters | $ | 126,501 | $ | 116,370 | ||||
Full time equivalent headcount | 137 | 125 | ||||||
As of and for the Three Months Ended December 31, | ||||||||
Financial Metrics | 2013 | 2012 | ||||||
Subscription revenue[4] | $ | 57,912 | $ | 48,935 | ||||
Fee-related revenue | 2,363 | 2,622 | ||||||
Total revenue | $ | 60,275 | $ | 51,557 | ||||
Cash, cash equivalents and short-term investments | $ | 290,722 | $ | 199,730 | ||||
Deferred revenue, current and noncurrent | $ | 137,743 | $ | 104,371 |
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