Network-1 Reports First Quarter 2021 Results
Network-1 Technologies announced impressive financial results for the quarter ended March 31, 2021, with revenue of $18.69 million, a significant increase from just $161,000 in the same quarter of 2020. This growth is attributed to a favorable resolution of a contractual dispute with Cisco regarding the Remote Power Patent. The company reported a net income of $9.45 million, compared to a net loss of $1.34 million a year earlier. Network-1 maintains a strong liquidity position with cash and marketable securities of $41.27 million.
A trial against Hewlett-Packard is set for August 2, 2021.
- Revenue increased by $18.53 million YoY due to resolution with Cisco.
- Net income of $9.45 million compared to a net loss of $1.34 million YoY.
- Liquidity position strong with cash and securities totaling $41.27 million.
- None.
NEW YORK, NY / ACCESSWIRE / May 17, 2021 / Network-1 Technologies, Inc. (NYSE AMERICAN:NTIP), a company specializing in the development, licensing, and protection of its intellectual property assets, today announced financial results for the quarter ended March 31, 2021.
Network-1 had revenue of
Network-1 reported net income of
At March 31, 2021, Network-1's principal sources of liquidity consisted of cash and cash equivalents and marketable securities of
With respect to Network-1's patent infringement litigation against Hewlett-Packard involving its Remote Power Patent, on May 7, 2021, the U.S. District Court for the Eastern District of Texas, Tyler Division, granted Network-1's motion for a new trial and denied its request for judgment as a matter of law on validity (which will be part of the trial). In addition, the District Court scheduled the trial to commence on August 2, 2021.
On March 12, 2021, Network-1 increased its investment in ILiAD Biotechnologies, LLC, a privately held clinical stage biotechnology company dedicated to the prevention of human disease caused by Bordetella pertussis with a current focus on its proprietary intranasal vaccine BPZE1, to an aggregate of
On June 9, 2020, the Board of Directors of Network-1 approved the continuation of Network-1's dividend policy which consists of semi-annual cash dividends of
ABOUT NETWORK-1 TECHNOLOGIES, INC.
Network-1 Technologies, Inc. is engaged in the development, licensing and protection of its intellectual property and proprietary technologies. Network-1 works with inventors and patent owners to assist in the development and monetization of their patented technologies. Network-1 currently owns eighty-four (84) patents covering various telecommunications and data networking technologies as well as technologies relating to document stream operating systems and the identification of media content. Network-1's current strategy includes continuing to pursue licensing opportunities for its intellectual property assets. Network-1's strategy is to focus on acquiring and investing in high quality patents which management believes have the potential to generate significant licensing opportunities as Network-1 has achieved with respect to its Remote Power Patent and Mirror Worlds Patent Portfolio. Network-1's Remote Power Patent has generated licensing revenue in excess of
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements address future events and conditions concerning Network-1's business plans. Such statements are subject to a number of risk factors and uncertainties as disclosed in the Network-1's Annual Report on Form 10-K for the year ended December 31, 2020 and its Quarterly Report on 10-Q for the three months ended March 31, 2021 filed with the Securities and Exchange Commission including, among others, Network-1's uncertain revenue stream, uncertainty as to the outcome of pending litigations involving Network-1's Remote Power Patent, Mirror Worlds patent portfolio and Cox patent portfolio, Network-1's ability to generate further revenue from its Remote Power Patent for the period prior to March 7, 2020 (the expiration date of the patent), the ability of Network-1 to successfully execute its strategy to acquire or make investments in high quality patents with significant licensing opportunities, Network-1's ability to achieve revenue and profits from its Cox Patent Portfolio, its M2M/IoT Patent Portfolio and additional revenue and profit from its Mirror Worlds Patent Portfolio as well as a return on its investment in IliAD Biotechnologies, LLC or other intellectual property it may acquire or finance in the future, the ability of Network-1 to enter into additional license agreements, uncertainty as to whether cash dividends will continue be paid, the difficulty in Network-1 verifying royalty amounts owed to it by its licensees, Network-1's ability to enter into strategic relationships with third parties to license or otherwise monetize their intellectual property, the risk in the future of Network-1 being classified as a Personal Holding Company which may result in Network-1 issuing a special cash dividend to its stockholders, future economic conditions and technology changes and legislative, regulatory and competitive developments. Except as otherwise required to be disclosed in periodic reports, Network-1 expressly disclaims any future obligation or undertaking to update or revise any forward-looking statement contained herein.
The unaudited condensed consolidated statements of operations and comprehensive income (loss) and unaudited condensed consolidated balance sheet are below.
NETWORK-1 TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
REVENUE | $ | 18,692,000 | $ | 161,000 | |||||||
OPERATING EXPENSES: | |||||||||||
Costs of revenue Professional fees and related costs General and administrative Amortization of patents Stock-based compensation | 5,420,000 355,000 513,000 74,000 59,000 | 32,000 399,000 486,000 72,000 72,000 | |||||||||
TOTAL OPERATING EXPENSES | 6,421,000 | 1,061,000 | |||||||||
OPERATING INCOME (LOSS) | 12,271,000 | (900,000 | ) | ||||||||
OTHER INCOME (LOSS): | |||||||||||
Interest and dividend income, net | 50,000 | 178,000 | |||||||||
Net realized and unrealized gain (loss) on marketable securities | (46,000 | ) | (322,000 | ) | |||||||
Total other income (loss), net | 4,000 | (144,000 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET LOSSES OF EQUITY METHOD INVESTEE | 12,275,000 | (1,044,000 | ) | ||||||||
INCOME TAXES PROVISION: | |||||||||||
Current | 890,000 | - | |||||||||
Deferred taxes, net | 1,724,000 | - | |||||||||
| 2,614,000 | - | ||||||||||
INCOME (LOSS) BEFORE SHARE OF NET LOSSES OF EQUITY METHOD INVESTEE: | 9,661,000 | $ | (1,044,000 | ) | |||||||
| $ | (210,000 | ) | $ | (293,000 | ) | ||||||
| $ | 9,451,000 | $ | (1,337,000) | ||||||||
| $ | 0.39 | $ | (0.06) | ||||||||
| $ | 0.38 | $ | (0.06) | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 24,107,879 | 24,029,513 | |||||||||
| 24,616,379 | 24,029,513 | ||||||||||
Cash dividends declared per share | $ | 0.05 | $ | 0.05 | |||||||
NET INCOME (LOSS) | $ | 9,451,000 | $ | (1,337,000) | |||||||
OTHER COMPREHENSIVE INCOME (LOSS) Net unrealized holding gain (loss) on corporate bonds and notes during the period, net of tax Amounts reclassified from accumulated other comprehensive income (loss) Net other comprehensive income (loss) | 11,000 - 11,000 | (163,000 (20,000 (183,000 | ) ) ) | ||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 9,462,000 | $ | (1,520,000) | |||||||
Condensed Consolidated Balance Sheet (Unaudited)
Cash and cash equivalents | $ | 24,122,000 | ||
Marketable securities, at fair value | $ | 17,149,000 | ||
Total current assets | $ | 60,051,000 | ||
Total assets | $ | 66,016,000 | ||
Total current liabilities | $ | 7,780,000 | ||
Total long term liabilities | $ | 769,000 | ||
Total stockholders' equity | $ | 57,467,000 | ||
SOURCE: Network-1 Technologies, Inc.
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FAQ
What were Network-1's revenue figures for Q1 2021?
How much did Network-1 earn per share in Q1 2021?
What caused the revenue growth for Network-1 in Q1 2021?
When is the trial against Hewlett-Packard scheduled?
Does Network-1 pay dividends to shareholders?
