Network-1 Reports First Quarter 2018 Results

Network-1 Technologies Inc. (NYSEA:NTIP), a company specializing in the development, licensing and protecting of its intellectual property assets announced financial results for the quarter ended March 31, 2018.

The company said that it had a revenue of $19,463,000 for the three months ended March 31, 2018 as compared to the revenue of $6,221,000 in the same period in the previous year.

As quoted in the press release:

The increase in revenue of $13,242,000 for the three months ended March 31, 2018 was primarily due to revenue of $19,020,000 for the three months ended March 31, 2018 from a fully-paid license related to Network-1’s patent litigation settlement with Juniper Networks, Inc. and revenue from sale of its Avaya unsecured bankruptcy claim.  Excluding revenue from Network-1’s fully-paid license with Juniper and sale of its Avaya unsecured bankruptcy claim, revenue from royalty bearing licenses for the three months ended March 31, 2018 was $443,000 compared to $6,221,000 for the three months ended March 31, 2017.  The decrease in such royalty bearing revenue was due primarily to several of Network-1’s largest licensees stopping royalty payments as a result of the November 2017 jury verdict in Network-1’s patent litigation with Hewlett-Packard.

Network-1 realized net income of $8,601,000 or $0.36 per share (basic) and $0.34 per share (diluted) for the three months ended March 31, 2018 compared with net income of $2,268,000 or $0.09 per share (basic and diluted) for the three months ended March 31, 2017.  The increase in net income of $6,333,000 was primarily due to income associated with increased revenue of $13,242,000 from Network-1’s fully-paid license with Juniper and from the sale of its Avaya unsecured claim, less related costs.

At March 31, 2018, Network-1’s principal sources of liquidity consisted of cash and cash equivalents and other investments of $69,468,000 and working capital of $59,305,000. Network-1 believes based on its current cash position and projected licensing revenue from its existing license agreements and other revenue that it will have sufficient cash to fund its operations for the foreseeable future.

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