Delaware
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001-35146
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26-2990113
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(State or other Jurisdiction of Incorporation)
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(Commission File No.)
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(IRS Employer Identification No.)
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One Market Plaza
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Suite 800
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San Francisco, CA 94105
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(Address of principal executive offices, including zip code)
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(866) 779-7641
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(Registrant’s telephone number, including area code)
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(Former Name or Former Address, if Changed Since Last Report)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Press release issued by RPX Corporation dated October 30, 2012
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RPX Corporation
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By:
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/s/ Martin E. Roberts
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Martin E. Roberts
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General Counsel
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·
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Revenue for the third quarter of fiscal 2012 totaled $47.0 million, up 23% from the prior year period
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·
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GAAP net income for the third quarter of fiscal 2012 was $7.6 million or $0.14 per pro forma diluted share[1]
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·
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Non-GAAP net income for the third quarter of fiscal 2012 was $9.4 million or $0.18 per pro forma diluted share[1]
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Fourth Quarter 2012
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Full Year 2012
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Revenue
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$48.7 – $49.2 Million
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$194.8 – $195.3 Million
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Non-GAAP Cost of Revenue as a Percentage of Revenue
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—
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42% – 43%
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Non-GAAP SG&A
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—
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$42.2 – $43.1 Million
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Non-GAAP Net Income
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$9.8 - $10.4 Million
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$44.6 – $45.2 Million
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Non-GAAP Effective Tax Rate
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36%
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36%
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Diluted Shares Outstanding (Pro Forma Weighted Average)
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53.0 Million
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52.7 Million
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Net Acquisition Spend
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—
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$110 - $120 Million
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Investor Relations | Media Relations | ||
Cynthia Hiponia
The Blueshirt Group
+1-415-418-2563
ir@rpxcorp.com
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Kaustuva Das
RPX Corporation
+1-415-529-3105
media@rpxcorp.com
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RPX Corporation
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||||||||||||||||
Condensed Consolidated Statements of Operations
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||||||||||||||||
(in thousands, except per share data)
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Revenue
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$ | 47,044 | $ | 38,394 | $ | 146,131 | $ | 111,634 | ||||||||
Cost of revenue
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21,980 | 16,459 | 60,508 | 44,652 | ||||||||||||
Selling, general and administrative expenses
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13,147 | 9,069 | 39,903 | 28,465 | ||||||||||||
(Gain) on sale of patent assets, net
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- | - | (177 | ) | - | |||||||||||
Operating income
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11,917 | 12,866 | 45,897 | 38,517 | ||||||||||||
Other income (expense), net
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65 | (79 | ) | 92 | (645 | ) | ||||||||||
Income before provision for income taxes
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11,982 | 12,787 | 45,989 | 37,872 | ||||||||||||
Provision for income taxes
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4,392 | 4,935 | 17,130 | 15,659 | ||||||||||||
Net income
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$ | 7,590 | $ | 7,852 | $ | 28,859 | $ | 22,213 | ||||||||
Net income available to common stockholders:
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||||||||||||||||
Basic
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$ | 7,556 | $ | 7,381 | $ | 28,378 | $ | 12,858 | ||||||||
Diluted
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$ | 7,557 | $ | 7,421 | $ | 28,399 | $ | 13,518 | ||||||||
Net income per common share:
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||||||||||||||||
Basic
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$ | 0.15 | $ | 0.17 | $ | 0.57 | $ | 0.48 | ||||||||
Diluted
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$ | 0.14 | $ | 0.15 | $ | 0.55 | $ | 0.43 | ||||||||
Weighted-average shares used in computing net income per common share:
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||||||||||||||||
Basic
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50,457 | 44,473 | 49,410 | 27,015 | ||||||||||||
Diluted
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52,127 | 48,914 | 51,711 | 31,125 |
RPX Corporation
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||||||||
Condensed Consolidated Balance Sheets
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||||||||
(in thousands)
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||||||||
(unaudited)
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||||||||
September 30,
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December 31,
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|||||||
2012
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2011
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Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 83,440 | $ | 106,749 | ||||
Short-term investments
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125,197 | 126,976 | ||||||
Restricted cash
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- | 500 | ||||||
Accounts receivable
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12,997 | 16,160 | ||||||
Prepaid expenses and other current assets
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6,364 | 12,124 | ||||||
Deposit
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10,000 | - | ||||||
Deferred tax assets
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6,048 | 5,192 | ||||||
Total current assets
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244,046 | 267,701 | ||||||
Patent assets, net
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197,321 | 163,352 | ||||||
Property and equipment, net
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3,434 | 2,317 | ||||||
Intangible assets, net
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3,594 | 1,837 | ||||||
Goodwill
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16,460 | 1,675 | ||||||
Restricted cash, less current portion
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- | 147 | ||||||
Deferred tax assets, less current portion
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8,279 | 300 | ||||||
Other assets
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1,112 | 665 | ||||||
Total assets
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$ | 474,246 | $ | 437,994 | ||||
Liabilities and stockholders' equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 1,046 | $ | 821 | ||||
Accrued liabilities
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5,841 | 7,762 | ||||||
Deferred revenue
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93,722 | 96,513 | ||||||
Deferred payment obligations
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500 | 5,056 | ||||||
Other current liabilities
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2,124 | 2,182 | ||||||
Total current liabilities
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103,233 | 112,334 | ||||||
Deferred revenue, less current portion
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4,965 | 11,762 | ||||||
Deferred tax liabilities
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21,766 | 14,695 | ||||||
Other liabilities
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20 | 119 | ||||||
Total liabilities
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129,984 | 138,910 | ||||||
Common stock
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5 | 5 | ||||||
Additional paid-in capital
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275,612 | 259,315 | ||||||
Retained earnings
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68,646 | 39,787 | ||||||
Accumulated other comprehensive loss
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(1 | ) | (23 | ) | ||||
Total stockholders' equity
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344,262 | 299,084 | ||||||
Total liabilities and stockholders' equity
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$ | 474,246 | $ | 437,994 |
RPX Corporation
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Condensed Consolidated Statements of Cash Flows
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(in thousands)
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|||||||
(unaudited)
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|||||||
Nine Months Ended
September 30,
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2012
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2011
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||||||
Cash flows from operating activities
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|||||||
Net income
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$ | 28,859 | $ | 22,213 | |||
Adjustments to reconcile net income to net cash provided by operating activities:
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|||||||
Depreciation and amortization
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61,208 | 44,651 | |||||
Stock-based compensation
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7,493 | 4,849 | |||||
Excess tax benefit from stock-based compensation
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(5,796 | ) | (4,118 | ) | |||
Imputed interest on deferred payment obligations
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94 | 584 | |||||
Gain on sale of patent assets
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(177 | ) | - | ||||
Amortization of premium on investments
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3,773 | 404 | |||||
Deferred taxes
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(1,534 | ) | 99 | ||||
Other
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(19 | ) | 1 | ||||
Changes in assets and liabilities:
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|||||||
Accounts receivable
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3,163 | 10,586 | |||||
Prepaid expenses and other assets
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5,874 | (4,777 | ) | ||||
Deposit
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(10,000 | ) | - | ||||
Accounts payable
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225 | 256 | |||||
Accrued and other liabilities
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(2,856 | ) | 7,543 | ||||
Deferred revenue
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(9,642 | ) | 14,974 | ||||
Net cash provided by operating activities
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80,665 | 97,265 | |||||
Cash flows from investing activities
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|||||||
Purchases of investments classified as available-for-sale
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(150,227 | ) | (142,825 | ) | |||
Maturities and sale of investments classified as available-for-sale
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153,920 | 15,100 | |||||
Business acquisition
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(45,765 | ) | (3,345 | ) | |||
Decrease in restricted cash
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647 | 73 | |||||
Purchases of intangible assets
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(52 | ) | (95 | ) | |||
Purchases of property and equipment
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(1,626 | ) | (913 | ) | |||
Acquisitions of patent assets
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(65,056 | ) | (63,815 | ) | |||
Proceeds from sale of patent assets
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200 | 80 | |||||
Net cash used in investing activities
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(107,959 | ) | (195,740 | ) | |||
Cash flows from financing activities
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Repayments of principal on deferred payment obligations
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(5,150 | ) | (18,104 | ) | |||
Proceeds from other obligations
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500 | - | |||||
Proceeds from issuance of common stock in initial public offering, net of issuance costs
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- | 157,478 | |||||
Proceeds from issuance of common stock in follow-on offering, net of issuance costs
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- | 27,379 | |||||
Proceeds from exercise of stock options and other common stock issuances
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2,839 | 2,632 | |||||
Excess tax benefit from stock-based compensation
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5,796 | 4,118 | |||||
Net cash provided by financing activities
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3,985 | 173,503 | |||||
Net increase (decrease) in cash and cash equivalents
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(23,309 | ) | 75,028 | ||||
Cash and cash equivalents at beginning of period
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106,749 | 46,656 | |||||
Cash and cash equivalents at end of period
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$ | 83,440 | $ | 121,684 |
RPX Corporation
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Reconciliation of Pro Forma Net Income Per Share
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||||||||||||||||
(in thousands, except per share data)
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Net income
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$ | 7,590 | $ | 7,852 | $ | 28,859 | $ | 22,213 | ||||||||
Pro forma net income per share:
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Basic
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$ | 0.15 | $ | 0.17 | $ | 0.57 | $ | 0.52 | ||||||||
Diluted
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$ | 0.14 | $ | 0.15 | $ | 0.55 | $ | 0.47 | ||||||||
Shares used in computing pro forma net income per share:
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||||||||||||||||
Basic:
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||||||||||||||||
Basic weighted-average common shares
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50,457 | 44,473 | 49,410 | 27,015 | ||||||||||||
Less: Conversion of redeemable convertible preferred shares
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- | - | - | (13,836 | ) | |||||||||||
Add: Assumed conversion of redeemable convertible preferred shares
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- | - | - | 26,230 | ||||||||||||
Add: Restricted stock
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227 | 2,837 | 838 | 3,437 | ||||||||||||
Shares used in computing pro forma basic net income per share
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50,684 | 47,310 | 50,248 | 42,846 | ||||||||||||
Diluted:
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Diluted weighted-average common shares
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52,127 | 48,914 | 51,711 | 31,125 | ||||||||||||
Less: Conversion of redeemable convertible preferred shares
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- | - | - | (13,836 | ) | |||||||||||
Add: Assumed conversion of redeemable convertible preferred shares
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- | - | - | 26,230 | ||||||||||||
Add: Restricted stock
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227 | 2,837 | 838 | 3,437 | ||||||||||||
Shares used in computing pro forma diluted net income per share
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52,354 | 51,751 | 52,549 | 46,956 |
RPX Corporation
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Reconciliation of GAAP to Non-GAAP Net Income Per Share
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||||||||||||||||
(in thousands)
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Net income
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$ | 7,590 | $ | 7,852 | $ | 28,859 | $ | 22,213 | ||||||||
Stock-based compensation[1]
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2,529 | 1,913 | 7,810 | 4,849 | ||||||||||||
Amortization of acquired intangible assets[2]
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361 | 146 | 832 | 146 | ||||||||||||
Income tax adjustments[3]
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(1,054 | ) | (930 | ) | (2,689 | ) | (1,412 | ) | ||||||||
Non-GAAP net income
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$ | 9,426 | $ | 8,981 | $ | 34,812 | $ | 25,796 | ||||||||
Pro forma non-GAAP net income per share:
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||||||||||||||||
Basic
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$ | 0.19 | $ | 0.19 | $ | 0.69 | $ | 0.60 | ||||||||
Diluted
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$ | 0.18 | $ | 0.17 | $ | 0.66 | $ | 0.55 | ||||||||
Pro forma weighted-average shares:
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||||||||||||||||
Basic
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50,684 | 47,310 | 50,248 | 42,846 | ||||||||||||
Diluted
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52,354 | 51,751 | 52,549 | 46,956 |
RPX Corporation
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Reconciliation of GAAP to Non-GAAP Cost of Revenue
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(in thousands)
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Cost of revenue
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$ | 21,980 | $ | 16,459 | $ | 60,508 | $ | 44,652 | ||||||||
Amortization of acquired intangible assets[2]
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(56 | ) | (53 | ) | (168 | ) | (53 | ) | ||||||||
Non-GAAP cost of revenue
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$ | 21,924 | $ | 16,406 | $ | 60,340 | $ | 44,599 |
RPX Corporation
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||||||||||||||||
Reconciliation of GAAP to Non-GAAP Selling, General and Administrative Expenses
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||||||||||||||||
(in thousands)
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Selling, general and administrative expenses
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$ | 13,147 | $ | 9,069 | $ | 39,903 | $ | 28,465 | ||||||||
Stock-based compensation[1]
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(2,529 | ) | (1,913 | ) | (7,810 | ) | (4,849 | ) | ||||||||
Amortization of acquired intangible assets[2]
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(305 | ) | (93 | ) | (664 | ) | (93 | ) | ||||||||
Non-GAAP selling, general and administrative expenses
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$ | 10,313 | $ | 7,063 | $ | 31,429 | $ | 23,523 |
[1]
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RPX excludes stock-based compensation and related employer payroll taxes from its non-GAAP financial measures.
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[2]
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RPX excludes amortization expense related to intangible assets (other than patents) acquired in conjunction with the acquisition of businesses from its non-GAAP financial measures.
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[3]
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Amount reflects income taxes associated with the above noted non-GAAP exclusions.
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RPX Corporation
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Additional Metrics
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($ in thousands)
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||||||||
(unaudited)
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||||||||
As of and for the Three Months Ended
September 30,
|
||||||||
Operating Metrics
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2012
|
2011
|
||||||
Number of clients
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128 | 103 | ||||||
Net additions
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8 | 7 | ||||||
Trailing four quarters
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25 | 38 | ||||||
Gross acquisition spend
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$ | 26,376 | $ | 33,915 | ||||
Trailing four quarters
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$ | 176,170 | $ | 96,826 | ||||
Net acquisition spend
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$ | 26,376 | $ | 29,290 | ||||
Trailing four quarters
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$ | 121,940 | $ | 80,823 | ||||
Full time equivalent headcount
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126 | 99 | ||||||
Financial Metrics
|
||||||||
Subscription revenue
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$ | 47,011 | $ | 38,380 | ||||
Other revenue
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33 | 14 | ||||||
Revenue
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$ | 47,044 | $ | 38,394 | ||||
Cash, cash equivalents and short-term investments
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$ | 208,637 | $ | 250,008 | ||||
Deferred revenue, current and noncurrent
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$ | 98,687 | $ | 97,535 |