SAN FRANCISCO, Feb. 9, 2016 /PRNewswire/ -- RPX Corporation (together with its subsidiaries, "RPX", "the Company") (NASDAQ: RPXC), the leading provider of patent risk management and discovery management solutions, today announced its financial results for the fourth quarter and year ended December 31, 2015.

Highlights

• Subscription revenue for the fourth quarter of fiscal 2015 was $67.7 million, up 7% compared to $63.5 million in the prior year period
• Subscription revenue for fiscal 2015 totaled $269.7 million, up 7% compared to $251.4 million for fiscal 2014
• Revenue for the fourth quarter of fiscal 2015 totaled $72.8 million, up 8% compared to $67.7 million in the prior year period
• Revenue for fiscal 2015 totaled $291.9 million, up 13% compared to $259.3 million for fiscal 2014
• There were 255 clients in RPX's network as of December 31, 2015, including 89 insurance policy holders.
• In December 2015, RPX closed a syndicated transaction securing licensing rights to patents owned by Round Rock Research, LLC for over 20 companies for a total purchase price in excess of $100 million ($33 million net patent spend by RPX.)
• On January 22, 2016, RPX acquired Inventus Solutions, Inc. for $232 million in cash, net of working capital adjustments.

"RPX ended an important year on a solid quarter, with revenues increasing 8% over the prior year," said John Amster, CEO of RPX. "For the full year, revenues grew 13% with strong cash generation while we increased our subscriber base, expanded our insurance offering and entered the ediscovery management space with the acquisition of Inventus. Our focus in 2016 will be continuing to build the patent clearinghouse, growing our discovery services business, and leveraging the combined expertise of RPX and Inventus to bring efficiencies to new sectors of the legal market."

Summary Results

Revenue for the fourth quarter of fiscal 2015 was $72.8 million, compared to $67.7 million in the prior year period. Revenue for fiscal 2015 was $291.9 million, compared to $259.3 million for fiscal 2014.

Net acquisition spend during the quarter totaled $50.4 million, and included 13 new acquisitions of patent assets, in addition to the exercise of previously negotiated options to acquire licenses for new clients. Net acquisition spend during the year totaled $160.7 million.

GAAP net income for the fourth quarter was $5.5 million or $0.10 per diluted share, compared to $9.2 million or $0.17 per diluted share in the fourth quarter of 2014. GAAP net income for fiscal 2015 was $39.4 million or $0.71 per diluted share, compared to $39.3 million or $0.72 per diluted share for fiscal 2014.

Non-GAAP net income for the fourth quarter, which excludes stock-based compensation, the amortization of acquired intangibles, fair value adjustments on deferred payment obligations, gains on extinguishment of deferred payment obligations, other-than-temporary impairments on short-term investments, and realized losses on exchange of short-term investments (in each case, net of tax), was $11.7 million or $0.21 per diluted share, compared to $12.6 million or $0.23 per diluted share in the fourth quarter of 2014. Non-GAAP net income for fiscal 2015 was $54.7 million or $0.99 per diluted share, compared to $52.6 million or $0.96 per diluted share for fiscal 2014.

As of December 31, 2015, RPX had cash, cash equivalents and short-term investments of $326.0 million. 

Business Outlook

This outlook reflects the Company's current and preliminary view and may be subject to change. Please see the paragraph regarding "Forward-Looking Statements" at the end of this news release.

The Company provided the following business outlook for the first quarter of fiscal 2016:

The Company provided the following business outlook for the full year 2016:

The Company provided the following additional information regarding amortization expense for the full year 2016:

The above additional information regarding amortization expense does not include expected amortization costs related to the acquired intangibles from Inventus Solutions, Inc., which the Company expects to be between $10.0 and $16.0 million for the year ending December 31, 2016 based on its preliminary purchase price allocation. The Company will exclude the amortization expense from these acquired intangibles from its non-GAAP financial measures.

The above outlook is forward-looking. Actual results may differ materially. Please refer to the information under the caption "Use of Non-GAAP Financial Information" below.

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Conference Call

RPX management will host a conference call and live webcast for analysts and investors at 2:00 p.m. PST/5:00 p.m. EST on February 9, 2016. Parties in the United States and Canada can access the call by dialing 1-888-438-5525, using conference code 5854608.  International parties can access the call by dialing 1-719-325-2452, using conference code 5854608.

The conference call will be webcast and investors will be able to access the webcast and slide presentation from the "Investor Relations" section of the company's website at www.rpxcorp.com. A replay of the webcast will be available online at the aforementioned website following the conclusion of the conference call.

About RPX Corporation

RPX Corporation (NASDAQ: RPXC) is the leading provider of patent risk solutions, offering defensive buying, acquisition syndication, patent intelligence, insurance services and advisory services. Since its founding in 2008, RPX has introduced efficiency to the patent market by providing a rational alternative to litigation. The San Francisco-based company's pioneering approach combines principal capital, deep patent expertise, and client contributions to generate enhanced patent buying power. By acquiring patents and patent rights, RPX helps to mitigate and manage patent risk for its growing client network.

Use of Non-GAAP Financial Information

This news release dated February 9, 2016 contains non-GAAP financial measures.  Tables are provided in this news release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP cost of revenue, non-GAAP selling, general and administrative expenses, non-GAAP EBITDA, non-GAAP other income, net, non-GAAP net income, and non-GAAP net income per share.

To supplement the Company's consolidated financial statements presented on a GAAP basis, management believes that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. Management is excluding from its non-GAAP operating results (1) stock-based compensation expenses (inclusive of related employer payroll taxes), (2) the amortization of acquired intangible assets (other than patents), (3) fair value adjustments on deferred payment obligations, (4) gains on extinguishment of deferred payment obligations, (5) other-than-temporary impairments on short-term investments, (6) realized losses on exchange of short-term investments, and (7) their related tax effects. EBITDA is a non-GAAP measure defined as GAAP earnings before other income or expenses, net, taxes, depreciation, amortization, and stock-based compensation expenses (inclusive of related employer payroll taxes). Management uses these non-GAAP measures to evaluate the Company's financial results, and believes these non-GAAP measures may prove useful to investors who wish to consider the impact of certain items when comparing the Company's financial performance with that of other companies. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results, trends and performance. The presentation of additional information should not be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.

Forward-Looking Statements

This news release and its attachments contain forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding RPX's future financial performance as well as any statements regarding the Company's strategic and operational plans. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, among others, the Company's ability to maintain an adequate rate of growth, the success of the Company's new initiatives, the Company's ability to integrate and manage the acquisition of Inventus Solutions, Inc., and the Company's ability to attract new clients and retain existing clients. Forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "seek," "should," "target," "will," "would," and similar expressions or variations intended to identify forward-looking statements.  More information about potential factors that could affect the Company's business and financial results is contained in the Company's most recent annual report on Form 10-K, its quarterly reports on Form 10-Q, and the Company's other filings with the SEC. The Company does not intend, and undertakes no duty, to update any forward-looking statements to reflect future events or circumstances.

 

 

 

 

 

 

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SOURCE RPX Corporation