VRINGO ANNOUNCES 2013 THIRD QUARTER RESULTS AND SHAREHOLDER UPDATE
(Thomson Reuters ONE) -
NEW YORK - November 7, 2013 - Vringo, Inc. (NASDAQ: VRNG), a company engaged in
the innovation, development and monetization of intellectual property and mobile
technologies, today announced financial and operating results for the third
quarter ended September 30, 2013 and a shareholder update.
Third Quarter Financial and Operating Results
* As of September 30, 2013, we had approximately $41 million of cash and
short-term investments. We expect these funds will be sufficient to support
our current operations and allow timely execution of our business plans.
* Our average monthly use of cash from operations for the nine months ended
September 30, 2013 was approximately $1.9 million.
* Our net losses were approximately $10.5 million and $33.5 million, or $0.13
per basic share and $0.40 per basic share, for the three and nine months
ended September 30, 2013, respectively, mainly attributable to the
following:
* Cash used in operations of approximately $17.4 million for the nine months
ended September 30, 2013. These costs relate to the ongoing litigations
against Google, Inc., ZTE Corporation, ASUSTeK Computer, Inc., and certain
of their affiliates, other planned enforcements of our intellectual
property, as well as general and administrative expenses. An update on our
active litigations appears below.
* Non-cash costs of approximately $16.4 million for the nine
months ended September 30, 2013. These costs represent amortization and
depreciation of patents and technology, stock based compensation and the
revaluation of warrants.
Litigation Update
I/P Engine v. AOL, Google et al. Litigation
Our wholly-owned subsidiary I/P Engine's case against AOL, Google and others is
proceeding in U.S. District Court and the Court of Appeals for the Federal
Circuit.
On November 6, 2012, a jury in U.S. District Court in Norfolk, Virginia ruled in
favor of I/P Engine and against the defendants with respect to the defendants'
infringement of the asserted claims of U.S. Patent Nos. 6,314,420 and
6,775,664. After upholding the validity of the patents-in-suit, and determining
that the asserted claims of the patents were infringed by the defendants, the
jury found that reasonable royalty damages should be based on a "running
royalty," and that the running royalty rate should be 3.5%. The jury also
awarded I/P Engine a total of approximately $30.5 million. On November
20, 2012, the clerk entered the District Court's final judgment.
I/P Engine and the defendants have appealed the case to the Court of Appeals for
the Federal Circuit. AOL, Google et al. filed their opening brief on July
22, 2013, and the brief is publicly available on PACER.
On August 1, 2013, the District Court found that I/P Engine is entitled to
supplemental damages from October 1, 2012 to November 20, 2012; prejudgment
interest from September 15, 2011 to November 20, 2012; and post-judgment
interest for Defendants' infringement. The amounts for each of the foregoing
shall be determined by the District Court.
On August 16, 2013, the District Court found that I/P Engine is entitled to an
award of post-judgment royalty, and that additional discovery and briefing is
necessary to determine the precise amount of the royalty.
Google has asserted that, as of May 2013, it implemented a "design around" to
its system such that it no longer infringes the asserted patents. To resolve
the ongoing royalty rate and whether Google's alleged design around is more than
colorably different than the previously adjudicated infringing system, the
district court set a discovery and briefing schedule.
* I/P Engine served its expert reports on September 25, 2013.
* Defendants served their expert reports on October 15, 2013.
* The parties then submitted briefs to the district court on October
30, 2013.
* The parties' responsive briefs are due on November 10, 2013.
The District Court has also ordered the parties to attempt to set their own
royalty rate before the District Court imposes one. To that end, the District
Court ordered that within five days of completing the aforementioned discovery
and briefing schedule, the parties shall meet to negotiate an appropriate
ongoing royalty rate, using 20.9% of U.S. AdWords revenues as the appropriate
royalty base.
The United States Patent and Trademark Office is currently considering one
request from Google for reexamination of certain claims of one of the asserted
patents. The USPTO has previously upheld the validity of both of the asserted
patents.
Vringo Infrastructure v. ZTE Litigation
As of today, our wholly-owned subsidiary Vringo Infrastructure has filed seven
patent infringement cases against ZTE Corporation and its subsidiaries in four
countries, and a preliminary inquiry in Spain. The asserted patents relate to
wireless infrastructure and handsets, and span seven distinct patent families.
* In the United Kingdom, Vringo Infrastructure filed two cases and asserted
three patents in each case related to both infrastructure equipment and
handsets. The first trial is expected in the second half of 2014.
* In Germany, Vringo Germany GmbH asserted two patents related to
infrastructure equipment. The infringement hearing for EP 1,186,119
relating to the infringement of ZTE 3G infrastructure equipment is currently
scheduled for November 12, 2013. The infringement hearing for EP 1,212,919
relating to the infringement of ZTE 3G and 4G LTE infrastructure equipment
is scheduled for the first half of 2014.
* In France, Vringo Infrastructure asserted two patents related to
infrastructure equipment. A scheduling hearing was held on June 25, 2013
and a trial date is forthcoming.
* In Australia, Vringo Infrastructure asserted two patents related to
infrastructure equipment, handsets and tablets.
* In Spain, the Court notified the parties of its Ruling granting the
application filed by Vringo to perform preliminary inquiries (discovery)
against ZTE in Spain on the basis of the likely infringement of the Spanish
part of European Patent 1,186,119. ZTE is required to deliver to Vringo
discovery materials related to ZXSDR Base Stations, which Vringo alleges
were introduced and distributed in Spain during the last five years.
On May 15, 2013, Vringo Infrastructure provided ZTE with a term sheet providing
for the terms under which it would license its standard essential patents. The
term sheet can be found here: http://bit.ly/1c2ZqHH.
On July 3, 2013, Vringo Infrastructure learned that the Patent Reexamination
Board of the Patent Office of the People's Republic of China upheld the validity
of one of its patents that ZTE sought to invalidate through re-examination.
Vringo Infrastructure v. ASUS Litigation
On October 4, 2013, Vringo GmbH sued ASUSTeK Computer, Inc. and ASUS Computer
GmbH in the Düsseldorf Regional Court. The filings allege infringement of the
German part of European Patent 0,748,136 which relates to devices, including
those with hotspot functionality, that provide data services between two
different wireless/cellular networks.
ASUS describes itself as being "principally engaged in the provision of
computers, communications and consumer electronics (3C) solutions," with
recently reported annual revenue of $12.7 billion according to Bloomberg.
Vringo Infrastructure v. ADT and Tyco Litigation
On September 12, 2013, Vringo's wholly owned subsidiary, Vringo Infrastructure,
Inc., filed a patent infringement lawsuit against The ADT Corporation, ADT, LLC,
ADT Security Services, Inc., and Tyco Integrated Security, LLC in the United
States District Court for the Southern District of Florida.
The lawsuit alleges infringement of U.S. Patent No. 6,288,641, entitled
"Assembly, and Associated Method, for Remotely Monitoring a Surveillance Area".
The asserted patent relates to, amongst other things, the use of a mobile
terminal to remotely monitor a location (e.g., home or business).
Further Information on I/P Engine v. AOL, Google et al. Litigation
The U.S. District Court proceedings are pending in the Eastern District of
Virginia, Norfolk Division. The case number is 2:11cv512RAJ. Appellate
proceedings are pending in the United States Court of Appeals for the Federal
Circuit. The docket number is 13-1307. The court dockets for the foregoing
cases are publicly available on the Public Access to Court Electronic Records
website, www.pacer.gov, which is operated by the Administrative Office of the
U.S. Courts.
Documents regarding USPTO proceedings are publicly available on the Patent
Application Information Retrieval website,
http://portal.uspto.gov/pair/PublicPair.
About Vringo, Inc.
Vringo, Inc. is engaged in the innovation, development and monetization of
intellectual property and mobile technologies. Vringo's intellectual property
portfolio consists of over 500 patents and patent applications covering telecom
infrastructure, internet search, and mobile technologies. The patents and
patent applications have been developed internally, and acquired from third
parties. Vringo operates a global platform for the distribution of mobile
social applications and services. For more information, visit: www.vringo.com.
Forward-Looking Statements
This press release includes forward-looking statements, which may be identified
by words such as "believes," "expects," "anticipates," "estimates," "projects,"
"intends," "should," "seeks," "future," "continue," or the negative of such
terms, or other comparable terminology. Forward-looking statements are
statements that are not historical facts. Such forward-looking statements are
subject to risks and uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are not limited to:
our inability to license and monetize our patents, including the outcome of the
litigation against online search firms and other companies; our inability to
monetize and recoup our investment with respect to patent assets that we
acquire; our inability to develop and introduce new products and/or develop new
intellectual property; new legislation, regulations or court rulings related to
enforcing patents, that could harm our business and operating results;
unexpected trends in the mobile phone and telecom infrastructure industries; our
inability to raise additional capital to fund our combined operations and
business plan; our inability to maintain the listing of our securities on
NASDAQ; the potential lack of market acceptance of our products; potential
competition from other providers and products; our inability to retain key
members of our management team; and other risks and uncertainties and other
factors discussed from time to time in our filings with the Securities and
Exchange Commission ("SEC"), including our annual report on Form 10-K for the
year ended December 31, 2012 filed with the SEC on March 21, 2013. Vringo
expressly disclaims any obligation to publicly update any forward-looking
statements contained herein, whether as a result of new information, future
events or otherwise, except as required by law.
Contacts:
Investors and Media:
Cliff Weinstein
Executive Vice President
Vringo, Inc.
646-532-6777
cweinstein(at)vringoinc.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Vringo, Inc. via Thomson Reuters ONE
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Datum: 07.11.2013 - 22:05 Uhr
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