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 April 29, 2014 |
RPX Corporation | ||
By: | /s/ MARTIN E. ROBERTS | |
Martin E. Roberts | ||
General Counsel | ||
• | Subscription revenue for the first quarter of fiscal 2014 was $60.8 million, up 13% compared to $54.0 million in the prior year period |
• | Client count for the first quarter of fiscal 2014 increased by 10 members bringing our total client network to 178 as of March 31, 2014 |
Subscription revenue[2] | $63.3 - $63.9 million | |
Fee-related revenue | $— | |
Total revenue | $63.3 - $63.9 million | |
Net income (non-GAAP) | $11.4 - $12.0 million | |
Effective tax rate (non-GAAP) | 37% | |
Pro forma weighted-average diluted shares outstanding | 54.6 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) | 37% | |
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenue | $ | 61,888 | $ | 61,194 | ||||
Cost of revenue | 28,920 | 23,670 | ||||||
Selling, general and administrative expenses | 17,255 | 14,473 | ||||||
Operating income | 15,713 | 23,051 | ||||||
Other income, net | 99 | 51 | ||||||
Income before provision for income taxes | 15,812 | 23,102 | ||||||
Provision for income taxes | 5,952 | 8,407 | ||||||
Net income | $ | 9,860 | $ | 14,695 | ||||
Net income available to common stockholders: | $ | 9,860 | $ | 14,678 | ||||
Net income available to common stockholders per common share: | ||||||||
Basic | $ | 0.19 | $ | 0.29 | ||||
Diluted | $ | 0.18 | $ | 0.28 | ||||
Weighted-average shares used in computing net income available to common stockholders per common share: | ||||||||
Basic | 52,803 | 51,201 | ||||||
Diluted | 54,443 | 52,653 |
RPX Corporation | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
March 31, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 120,898 | $ | 100,155 | |||
Short-term investments | 181,816 | 190,567 | |||||
Restricted cash | 364 | 364 | |||||
Accounts receivable | 13,071 | 38,477 | |||||
Prepaid expenses and other current assets | 9,030 | 10,546 | |||||
Deferred tax assets | 4,343 | 3,817 | |||||
Total current assets | 329,522 | 343,926 | |||||
Patent assets, net | 247,962 | 219,954 | |||||
Property and equipment, net | 4,506 | 4,667 | |||||
Intangible assets, net | 1,402 | 1,718 | |||||
Goodwill | 16,460 | 16,460 | |||||
Restricted cash, less current portion | 1,454 | 1,454 | |||||
Other assets | 618 | 622 | |||||
Total assets | $ | 601,924 | $ | 588,801 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 633 | $ | 332 | |||
Accrued liabilities | 6,317 | 8,784 | |||||
Deferred revenue | 138,684 | 131,808 | |||||
Deferred payment obligations | — | 500 | |||||
Other current liabilities | 1,060 | 1,638 | |||||
Total current liabilities | 146,694 | 143,062 | |||||
Deferred revenue, less current portion | 1,850 | 5,935 | |||||
Deferred tax liabilities | 11,315 | 11,654 | |||||
Other liabilities | 3,106 | 3,227 | |||||
Total liabilities | 162,965 | 163,878 | |||||
Stockholders’ equity: | |||||||
Common stock | 5 | 5 | |||||
Additional paid-in capital | 309,537 | 305,343 | |||||
Retained earnings | 129,387 | 119,527 | |||||
Accumulated other comprehensive income | 30 | 48 | |||||
Total stockholders’ equity | 438,959 | 424,923 | |||||
Total liabilities and stockholders’ equity | $ | 601,924 | $ | 588,801 |
RPX Corporation | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 9,860 | $ | 14,695 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 28,418 | 23,325 | |||||
Stock-based compensation | 3,802 | 3,708 | |||||
Excess tax benefit from stock-based compensation | (694 | ) | (968 | ) | |||
Amortization of premium on investments | 1,608 | 1,270 | |||||
Deferred taxes | (893 | ) | (1,153 | ) | |||
Other | (500 | ) | 6 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 25,406 | 11,978 | |||||
Other receivables | — | 33,775 | |||||
Prepaid expenses and other assets | 463 | 1,801 | |||||
Accounts payable | 467 | (68 | ) | ||||
Accrued and other liabilities | (2,601 | ) | (1,978 | ) | |||
Deferred revenue | 2,791 | 13,806 | |||||
Net cash provided by operating activities | 68,127 | 100,197 | |||||
Cash flows from investing activities | |||||||
Purchases of investments classified as available-for-sale | (51,125 | ) | (58,030 | ) | |||
Maturities of investments classified as available-for-sale | 59,945 | 37,811 | |||||
Purchases of property and equipment | (426 | ) | (421 | ) | |||
Acquisitions of patent assets | (56,153 | ) | (19,437 | ) | |||
Net cash used in investing activities | (47,759 | ) | (40,077 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from exercise of stock options and other common stock issuances | 582 | 1,019 | |||||
Tax withholdings related to net share settlements of restricted stock units | (901 | ) | — | ||||
Excess tax benefit from stock-based compensation | 694 | 968 | |||||
Net cash provided by financing activities | 375 | 1,987 | |||||
Net increase in cash and cash equivalents | 20,743 | 62,107 | |||||
Cash and cash equivalents at beginning of period | 100,155 | 73,638 | |||||
Cash and cash equivalents at end of period | $ | 120,898 | $ | 135,745 |
RPX Corporation | ||||||||
Reconciliation of Pro Forma Net Income Per Share | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 9,860 | $ | 14,695 | ||||
Pro forma net income per share: | ||||||||
Basic | $ | 0.19 | $ | 0.29 | ||||
Diluted | $ | 0.18 | $ | 0.28 | ||||
Shares used in computing pro forma net income per share: | ||||||||
Basic: | ||||||||
Basic weighted-average common shares | 52,803 | 51,201 | ||||||
Add: Restricted stock | — | 59 | ||||||
Shares used in computing pro forma basic net income per share | 52,803 | 51,260 | ||||||
Diluted: | ||||||||
Diluted weighted-average common shares | 54,443 | 52,653 | ||||||
Add: Restricted stock | — | 59 | ||||||
Shares used in computing pro forma diluted net income per share | 54,443 | 52,712 |
RPX Corporation | ||||||||
Reconciliation of GAAP to Pro Forma Non-GAAP Net Income Per Share | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 9,860 | $ | 14,695 | ||||
Stock-based compensation[1] | 3,919 | 3,778 | ||||||
Amortization of acquired intangible assets[2] | 305 | 360 | ||||||
Income tax adjustments[3] | (1,369 | ) | (1,285 | ) | ||||
Non-GAAP net income | $ | 12,715 | $ | 17,548 | ||||
Pro forma non-GAAP net income per share: | ||||||||
Basic | $ | 0.24 | $ | 0.34 | ||||
Diluted | $ | 0.23 | $ | 0.33 | ||||
Shares used in computing pro forma net income per share: | ||||||||
Basic | 52,803 | 51,260 | ||||||
Diluted | 54,443 | 52,712 |
RPX Corporation | ||||||||
Reconciliation of GAAP to Non-GAAP Cost of Revenue | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Cost of revenue | $ | 28,920 | $ | 23,670 | ||||
Amortization of acquired intangible assets[2] | (56 | ) | (56 | ) | ||||
Non-GAAP cost of revenue | $ | 28,864 | $ | 23,614 |
RPX Corporation | ||||||||
Reconciliation of GAAP to Non-GAAP Selling, General and Administrative Expenses | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Selling, general and administrative expenses | $ | 17,255 | $ | 14,473 | ||||
Stock-based compensation[1] | (3,919 | ) | (3,778 | ) | ||||
Amortization of acquired intangible assets[2] | (249 | ) | (304 | ) | ||||
Non-GAAP selling, general and administrative expenses | $ | 13,087 | $ | 10,391 |
RPX Corporation | ||||||||
Additional Metrics | ||||||||
(in thousands, except client and headcount data) | ||||||||
(unaudited) | ||||||||
As of and for the Three Months Ended March 31, | ||||||||
Operating Metrics | 2014 | 2013 | ||||||
Number of clients | 178 | 146 | ||||||
Net additions | 10 | 6 | ||||||
Trailing four quarters | 32 | 30 | ||||||
Gross acquisition spend | $ | 58,653 | $ | 29,437 | ||||
Trailing four quarters | $ | 161,467 | $ | 267,857 | ||||
Net acquisition spend | $ | 55,653 | $ | 29,437 | ||||
Trailing four quarters | $ | 152,717 | $ | 132,427 | ||||
Full time equivalent headcount | 133 | 125 | ||||||
As of and for the Three Months Ended March 31, | ||||||||
Financial Metrics | 2014 | 2013 | ||||||
Subscription revenue[4] | $ | 60,788 | $ | 54,024 | ||||
Fee-related revenue | 1,100 | 7,170 | ||||||
Total revenue | $ | 61,888 | $ | 61,194 | ||||
Cash, cash equivalents and short-term investments | $ | 302,714 | $ | 283,422 | ||||
Deferred revenue, current and noncurrent | $ | 140,534 | $ | 118,177 |
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