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 28, 2015 |
RPX Corporation | ||
By: | /s/ MARTIN E. ROBERTS | |
Martin E. Roberts | ||
General Counsel | ||
• | Subscription revenue for the first quarter of fiscal 2015 was $66.2 million, up 9% compared to $60.8 million in the prior year period |
• | Revenue for the first quarter of fiscal 2015 totaled $83.3 million, up 35% compared to $61.9 million in the prior year period |
• | Client count for the first quarter of fiscal 2015 increased by 20 net clients bringing our total client network to 224 as of March 31, 2015 |
Subscription revenue[1] | $67.0 - $67.5 million | |
Fee-related revenue | $0.0 million | |
Total revenue | $67.0 - $67.5 million | |
Net income (non-GAAP) | $9.1 - $9.6 million | |
Effective tax rate (non-GAAP) | 37% | |
Weighted-average diluted shares outstanding | 55.6 million |
Subscription revenue[1] | $265.0 - $275.0 million | |
Fee-related revenue | $20.0 - $25.0 million | |
Total revenue | $285.0 - $300.0 million | |
Cost of revenue (non-GAAP) | $145.0 - $150.0 million | |
SG&A (non-GAAP) | $60.0 - $64.0 million | |
Net income (non-GAAP) | $50.0 - $54.0 million | |
Effective tax rate (non-GAAP) | 37% | |
Weighted-average diluted shares outstanding | 55.9 million | |
Net acquisition spend | $170.0 million |
Investor Relations | Media Relations |
JoAnn Horne | Allan W. Whitescarver |
Market Street Partners | RPX Corporation |
+1-415-445-3233 | +1-415-852-3171 |
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, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 83,287 | $ | 61,888 | ||||
Cost of revenue | 34,759 | 28,920 | ||||||
Selling, general and administrative expenses | 19,459 | 17,255 | ||||||
Operating income | 29,069 | 15,713 | ||||||
Other income, net | 121 | 99 | ||||||
Income before provision for income taxes | 29,190 | 15,812 | ||||||
Provision for income taxes | 11,159 | 5,952 | ||||||
Net income | $ | 18,031 | $ | 9,860 | ||||
Net income per common share: | ||||||||
Basic | $ | 0.33 | $ | 0.19 | ||||
Diluted | $ | 0.33 | $ | 0.18 | ||||
Weighted-average shares used in computing net income per common share: | ||||||||
Basic | 54,175 | 52,803 | ||||||
Diluted | 55,197 | 54,443 |
RPX Corporation | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 118,858 | $ | 78,019 | |||
Short-term investments | 251,725 | 239,514 | |||||
Restricted cash | 785 | 584 | |||||
Accounts receivable | 15,351 | 24,793 | |||||
Prepaid expenses and other current assets | 8,353 | 3,466 | |||||
Deferred tax assets | 4,400 | 4,400 | |||||
Total current assets | 399,472 | 350,776 | |||||
Patent assets, net | 256,898 | 236,349 | |||||
Property and equipment, net | 4,230 | 4,151 | |||||
Intangible assets, net | 3,095 | 3,526 | |||||
Long-term investments | 4,355 | — | |||||
Goodwill | 19,978 | 19,978 | |||||
Restricted cash, less current portion | 1,091 | 1,091 | |||||
Other assets | 1,128 | 26,100 | |||||
Deferred tax assets, less current portion | 720 | 93 | |||||
Total assets | $ | 690,967 | $ | 642,064 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,583 | $ | 235 | |||
Accrued liabilities | 7,190 | 14,257 | |||||
Deferred revenue | 152,602 | 133,316 | |||||
Deferred payment obligations | 5,935 | — | |||||
Other current liabilities | 857 | 640 | |||||
Total current liabilities | 168,167 | 148,448 | |||||
Deferred revenue, less current portion | 5,809 | 2,893 | |||||
Deferred payment obligations, less current portion | 4,355 | — | |||||
Other liabilities | 5,770 | 5,678 | |||||
Total liabilities | 184,101 | 157,019 | |||||
Stockholders’ equity: | |||||||
Common stock | 5 | 5 | |||||
Additional paid-in capital | 330,274 | 326,280 | |||||
Retained earnings | 176,611 | 158,868 | |||||
Accumulated other comprehensive income | (24 | ) | (108 | ) | |||
Total stockholders’ equity | 506,866 | 485,045 | |||||
Total liabilities and stockholders’ equity | $ | 690,967 | $ | 642,064 |
RPX Corporation | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Operating activities | |||||||
Net income | $ | 18,031 | $ | 9,860 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 34,011 | 28,418 | |||||
Stock-based compensation | 3,881 | 3,802 | |||||
Excess tax benefit from stock-based compensation | (316 | ) | (694 | ) | |||
Amortization of premium on investments | 1,435 | 1,608 | |||||
Deferred taxes | (738 | ) | (893 | ) | |||
Other | — | (500 | ) | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 9,442 | 25,406 | |||||
Prepaid expenses and other assets | (5,323 | ) | 463 | ||||
Accounts payable | 1,348 | 467 | |||||
Accrued and other liabilities | (6,802 | ) | (2,601 | ) | |||
Deferred revenue | 22,102 | 2,791 | |||||
Net cash provided by operating activities | 77,071 | 68,127 | |||||
Investing activities | |||||||
Purchases of investments | (57,663 | ) | (51,125 | ) | |||
Maturities of investments | 44,559 | 59,945 | |||||
Increase in restricted cash | (201 | ) | — | ||||
Purchases of property and equipment | (547 | ) | (426 | ) | |||
Acquisitions of patent assets | (28,636 | ) | (56,153 | ) | |||
Net cash used in investing activities | (42,488 | ) | (47,759 | ) | |||
Financing activities | |||||||
Proceeds from deferred payment obligations | 6,270 | — | |||||
Proceeds from exercise of stock options and other common stock issuances | 671 | 582 | |||||
Tax withholdings related to net share settlements of restricted stock units | (857 | ) | (901 | ) | |||
Excess tax benefit from stock-based compensation | 316 | 694 | |||||
Repurchase of common stock | (144 | ) | — | ||||
Net cash provided by financing activities | 6,256 | 375 | |||||
Net increase in cash and cash equivalents | 40,839 | 20,743 | |||||
Cash and cash equivalents at beginning of period | 78,019 | 100,155 | |||||
Cash and cash equivalents at end of period | $ | 118,858 | $ | 120,898 |
RPX Corporation | ||||||||
Reconciliation of GAAP to Non-GAAP Net Income Per Share | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net income | $ | 18,031 | $ | 9,860 | ||||
Stock-based compensation[1] | 3,992 | 3,919 | ||||||
Amortization of acquired intangible assets[2] | 431 | 305 | ||||||
Income tax adjustments[3] | (1,290 | ) | (1,369 | ) | ||||
Non-GAAP net income | $ | 21,164 | $ | 12,715 | ||||
Non-GAAP net income per share: | ||||||||
Basic | $ | 0.39 | $ | 0.24 | ||||
Diluted | $ | 0.38 | $ | 0.23 | ||||
Shares used in computing non-GAAP net income per share: | ||||||||
Basic | 54,175 | 52,803 | ||||||
Diluted | 55,197 | 54,443 |
RPX Corporation | ||||||||
Reconciliation of GAAP to Non-GAAP Cost of Revenue | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Cost of revenue | $ | 34,759 | $ | 28,920 | ||||
Amortization of acquired intangible assets[2] | (50 | ) | (56 | ) | ||||
Non-GAAP cost of revenue | $ | 34,709 | $ | 28,864 |
RPX Corporation | ||||||||
Reconciliation of GAAP to Non-GAAP Selling, General and Administrative Expenses | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Selling, general and administrative expenses | $ | 19,459 | $ | 17,255 | ||||
Stock-based compensation[1] | (3,992 | ) | (3,919 | ) | ||||
Amortization of acquired intangible assets[2] | (381 | ) | (249 | ) | ||||
Non-GAAP selling, general and administrative expenses | $ | 15,086 | $ | 13,087 |
RPX Corporation | ||||||||
Additional Metrics | ||||||||
(in thousands, except client and headcount data) | ||||||||
(unaudited) | ||||||||
As of and for the Three Months Ended March 31, | ||||||||
Operating Metrics | 2015 | 2014 | ||||||
Number of clients | 224 | 178 | ||||||
Net additions | 20 | 10 | ||||||
Trailing four quarters | 46 | 32 | ||||||
Gross acquisition spend | $ | 924,718 | $ | 58,653 | ||||
Trailing four quarters | $ | 1,025,233 | $ | 161,467 | ||||
Net acquisition spend | $ | 53,636 | $ | 55,653 | ||||
Trailing four quarters | $ | 134,451 | $ | 152,717 | ||||
Full time equivalent headcount | 151 | 133 | ||||||
As of and for the Three Months Ended March 31, | ||||||||
Financial Metrics | 2015 | 2014 | ||||||
Subscription revenue[4] | $ | 66,244 | $ | 60,788 | ||||
Fee-related revenue | 17,043 | 1,100 | ||||||
Total revenue | $ | 83,287 | $ | 61,888 | ||||
Cash, cash equivalents and short-term investments | $ | 370,583 | $ | 302,714 | ||||
Deferred revenue, current and noncurrent | $ | 158,411 | $ | 140,534 |
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