August 15, 2012 at 16:05 PM EDT
Unwired Planet Reports Fourth Quarter and Fiscal End 2012 Financial Results

Unwired Planet, formerly Openwave Systems Inc. (Nasdaq: UPIP), today announced financial results for the fourth quarter and fiscal year end 2012.

“We are excited about the significant progress we have made in transforming Unwired Planet into an Intellectual property company. Over the past nine months, we have divested the products businesses, added IP experience to the management team and Board, and embarked on a strategy with significant potential,” said Mike Mulica, Chief Executive Officer of Unwired Planet. “The company continues to transform, making great strides towards executing our multi-pronged IP strategy.”

On a GAAP basis, net income for the fourth fiscal quarter ended June 30, 2012 was $31.9 million or $0.36 per share, compared with a net loss of $9.5 million, or $0.11 per share, in the prior quarter and net loss of $20.0 million or $0.23 per share, in the June quarter in the preceding year. Restructuring costs in the quarter were $0.2 million. Net income on a GAAP basis for the year was $14.6 million, or $0.17 per share, driven by the gain on the sale of discontinued operations, compared with a net loss of $35.2 million, or $0.42 per share, in the prior year.

On a non-GAAP basis, net loss for the fourth fiscal quarter ended June 30, 2012 was $6.3 million or $0.07 per share, compared with a net loss of $4.7 million or $0.05 per share, in the prior quarter and a net loss of $3.0 million, or $0.04 per share, in the June quarter in the preceding year. Net loss on a non-GAAP basis was $4.3 million, or $0.05 per share, for fiscal 2012 compared with a net loss of $4.5 million, or $0.05 per share, in fiscal 2011. Non-GAAP net loss excludes discontinued operations, restructuring, impairments on investments, amortization of stock-based compensation, amounts associated with certain strategic costs, certain losses on investments and the tax impact of these items.

A reconciliation between net income (loss) and net income (loss) per share on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

Non-GAAP Financial Measures

The Company’s stated results include the following non-GAAP measures: non-GAAP net loss and non-GAAP net loss per share. These non-GAAP measures exclude certain items that generally are non-recurring events or are non-cash items that many other companies exclude, in order to compare Unwired Planet with other companies, such as stock-based compensation. These non-GAAP measures also exclude items which management does not consider in evaluating Unwired Planet’s on-going business, such as restructuring costs, impairments on investments, certain strategic costs, and discontinued operations. Unwired Planet considers non-GAAP net loss to be an important measure because it provides a useful measure of the operational performance of Unwired Planet and is used by Unwired Planet's management for that purpose. In addition, investors often use measures such as these to evaluate the financial performance of a company. These non-GAAP measures are presented for supplemental informational purposes only for understanding Unwired Planet's operating results. These non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

Conference Call Information

Unwired Planet has scheduled a conference call for 5:00 p.m. eastern daylight time today to discuss its financial results for its fourth quarter ended June 30, 2012. Interested parties may access the conference call over the Internet through Unwired Planet’s website at www.unwiredplanet.com or by telephone at (877) 941-1427 or (480) 629-9664 (international). A replay of the conference call will be available for three weeks (until September 5), beginning at 5:00 p.m. PT on August 15 by calling (800) 406-7325. The replay can be accessed internationally by calling (303) 590-3030, access code: 4555560#. A live webcast of the call, together with supplemental financial information, will also be available on the Investors section of Unwired Planet’s website at http://www.openwave.com/investors/index.html. A replay will be available on the website for at least three months.

About Unwired Planet

Unwired Planet (NASDAQ: UPIP) is the inventor of the mobile internet. Unwired Planet established many of the foundational patents that allow mobile devices to connect to the Internet. Over the years, the company has amassed a patent portfolio of approximately 200 issued US and foreign patents and approximately 75 pending applications, many of which are considered foundational to mobile communications, and span smart devices, cloud technologies and unified messaging. Unwired Planet is headquartered in Silicon Valley, California.

Cautionary Note Regarding Forward Looking Statements

The statements in this press release in Mr. Mulica’s quote with respect to future events or expectations are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1943 and Section 27A of the Securities Act of 1933. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Unwired Planet assumes no obligation to update the forward-looking statements included in this press release.

For a detailed discussion of these and other factors that may cause these forward looking statements not to come true, please refer to the risk factors discussed in Unwired Planet’s filings with the U.S. Securities and Exchange Commission ("SEC"), including the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2011. These documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Unwired Planet’s website at www.unwiredplanet.com.

UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED
(In thousands)
June 30,June 30,
20122011
Assets
Current Assets:
Cash, cash equivalents and short-term investments $ 83,569 $ 81,213
Prepaid and other current assets 3,960 2,687
Current assets of discontinued operation - 35,414
Total current assets 87,529 119,314
Property and equipment, net 452 1,475
Long-term investments 9,423 15,630
Deposits and other assets 89 114
Noncurrent assets of discontinued operation - 11,284
Total assets $ 97,493 $ 147,817
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 6,088 $ 2,271
Accrued liabilities 8,119 5,265
Accrued settlement related to discontinued operations - 12,000
Accrued restructuring costs 12,871 13,660
Current liabilities of discontinued operation - 48,376
Total current liabilities 27,078 81,572
Accrued restructuring costs, less current portion 827 12,515
Deferred rent obligations and long-term taxes payable 959 1,415
Noncurrent liabilities of discontinued operation - 9,370
Total liabilities 28,864 104,872
Stockholders' equity 68,629 42,945
Total liabilities and stockholders' equity $ 97,493 $ 147,817
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
(In thousands, except per share data)
Three Months EndedTwelve Months Ended
June 30,March 31,June 30,June 30,June 30,
20122012201120122011
Revenues:
Patents $ 4 $ 20 $ 10 $ 15,050 $ 4,019
Total revenues 4 20 10 15,050 4,019
Operating Expenses:
Sales and marketing expenses 239 - - 614 -
Patent initiative expenses 4,623 3,470 1,698 13,089 3,398
General and administrative 2,527 2,157 1,647 7,651 5,732
Restructuring and other related costs 190 141 301 2,666 2,226
Total operating expenses 7,579 5,768 3,646 24,020 11,356
Operating loss from continuing operations (7,575 ) (5,748 ) (3,636 ) (8,970 ) (7,337 )
Interest and other income (expense), net (258 ) 36 (433 ) (469 ) (653 )
Net loss from continuing operations (7,833 ) (5,712 ) (4,069 ) (9,439 ) (7,990 )
Income taxes (3,790 ) - 115 (1,289 ) 115
Net loss from continuing operations (4,043 ) (5,712 ) (4,184 ) (8,150 ) (8,105 )
Gain on sale of discontinued operation 45,133 5,161 (12,000 ) 50,294 (9,764 )
Discontinued operations, net (9,237 ) (8,986 ) (3,776 ) (27,577 ) (17,379 )
Net income (loss) $ 31,853 $ (9,537 ) $ (19,960 ) $ 14,567 $ (35,248 )
Basic and diluted net income (loss) per share from:
Continuing operations $ (0.05 ) $ (0.07 ) $ (0.05 ) $ (0.09 ) $ (0.10 )
Discontinued operations 0.41 (0.04 ) (0.18 ) 0.26 (0.32 )
Net income (loss) per share $ 0.36 $ (0.11 ) $ (0.23 ) $ 0.17 $ (0.42 )

Shares used in basic and diluted net income (loss) per share

88,200 86,146 85,216 86,354 84,577
Stock-based compensation by category:
Sales and marketing $ 15 $ - $ - $ 15 $ -
Patent initiative 43 - - 43 -
General and administrative 613 894 111 1,774 402
Discontinued operations 3,554 2,066 437 6,573 2,081
$ 4,225 $ 2,960 $ 548 $ 8,405 $ 2,483
UNWIRED PLANET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(In thousands, except per share data)
Three Months EndedTwelve Months Ended
June 30,March 31,June 30,June 30,June 30,
20122012201120122011

Reconciliation between GAAP and Non-GAAP net loss:
Net income (loss) $ 31,853 $ (9,537 ) $ (19,960 ) $ 14,567 $ (35,248 )
Exclude:
Restructuring costs 190 141 301 2,666 2,226
Stock-based compensation 671 894 111 1,832 402
Strategic costs 676 - - 676 -
Discontinued operations, net of tax (35,896 ) 3,825 15,776 (22,717 ) 27,143
Realized losses and other-than-temporary impairments of investments - - 632 -

908

Tax impact related to unusual transactions (3,790 ) - 115 (1,289 ) 115
Non-GAAP net loss $ (6,296 ) $ (4,677 ) $ (3,025 ) $ (4,265 ) $ (4,454 )
GAAP net income (loss) per share $ 0.36 $ (0.11 ) $ (0.23 ) $ 0.17 $ (0.42 )
Exclude:
Restructuring costs $ - $ - $ - $ 0.03 $ 0.03
Stock-based compensation $ 0.01 $ 0.01 $ - $ 0.02 $ 0.01
Strategic costs $ 0.01 $ - $ - $ 0.01 $ -
Discontinued operations, net of tax $ (0.41 ) $ 0.05 $ 0.18 $ (0.26 ) $ 0.32
Realized losses and other-than-temporary impairments of investments $ - $ - $ 0.01 $ - $ 0.01
Tax impact related to unusual transactions $ (0.04 ) $ - $ - $ (0.02 ) $ -
Non-GAAP net income (loss) per share $ (0.07 ) $ (0.05 ) $ (0.04 ) $ (0.05 ) $ (0.05 )
Shares used in computing net income (loss) per share 88,200 86,146 85,216 86,354 84,577
UNWIRED PLANET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED
(in thousands)
Three Months EndedTwelve Months Ended
June 30,March 31,June 30,June 30,June 30,
20122012201120122011
Operating activities:
Net income (loss) $ 31,853 $ (9,537 ) $ (19,960 ) $ 14,567 $ (35,248 )
Gain on sale of discontinued operation (45,133 ) (5,161 ) - (50,294 ) (2,236 )
Reconciling items:
Depreciation, amortization of intangibles and stock-based compensation 4,626 3,857 2,276 12,416 9,379
Non-cash restructuring charges 131 161 237 691 1,109
Non-cash tax benefits (3,790 ) - (3,411 ) (1,289 ) (3,411 )
Provision for (recovery of) doubtful accounts 38 (58 ) (183 ) 447 (351 )
Other non-cash items, net 534 208 300 1,313 1,347
Realized losses and other-than-temporary impairments of investments - - 645 - 921
Changes in operating assets and liabilities (8,676 ) 1,529 15,973 (21,479 ) 7,005
Net cash used for operating activities (20,417 ) (9,001 ) (4,123 ) (43,628 ) (21,485 )
Investing activities:
Purchases of property and equipment, net - (27 ) (876 ) (523 ) (4,045 )
Payment of settlement related to discontinued operation - - - (12,000 ) -
Sale of discontinued operation, net 46,238 5,161 - 51,399 2,236
Proceeds from sales and maturities of investments, net (15,031 ) (2,876 ) - (4,709 ) 7,240
Release of restricted cash and investments - - (3,207 ) - 357
Net cash provided by (used by) investing activities 31,207 2,258 (4,083 ) 34,167 5,788
Financing activities:
Net proceeds from issuance of common stock 1,093 517 749 1,904 2,028
Cash provided by financing activities 1,093 517 749 1,904 2,028
Net increase/(decrease) in cash and cash equivalents 11,883 (6,226 ) (7,457 ) (7,557 ) (13,669 )
Cash and cash equivalents at beginning of period 27,826 34,052 54,723 47,266 60,935
Cash and cash equivalents at end of period, including discontinued operations $ 39,709 $ 27,826 $ 47,266 $ 39,709 $ 47,266

Contacts:

The Blueshirt Group
Mike Bishop, 415-217-4968 (Investor Relations)
mike@blueshirtgroup.com
or
Unwired Planet
Vikki Herrera, 650-480-6753 (Public Relations)
Vikki.Herrera@unwiredplanet.com
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