SAN FRANCISCO, May 25, 2011 (GLOBE NEWSWIRE) -- RPX Corporation (Nasdaq:RPXC) announced today its financial results for the first quarter ended March 31, 2011.
First Quarter 2011 Highlights
- Revenue totaled $34.4 million, up 89% from the prior year period
- Client network grew to 81 with nine clients added in the first quarter
- GAAP net income was $6.7 million or $0.17 per diluted share on a pro forma basis
- Non-GAAP net income was $7.7 million or $0.20 per diluted share on a pro forma basis
"We began 2011 with a solid base of business and we're pleased with our client additions in the first quarter," said John Amster, CEO of RPX Corporation. "In early May, we successfully completed our IPO of 9,695,000 shares and began life as a public company. As we look ahead, we are focused on executing on the plan that we communicated to investors during our IPO road show."
Summary Results
Revenue increased 89% to $34.4 million, compared to $18.2 million in the first quarter of 2010. The year-over-year revenue increase was driven by the growing acceptance of RPX's patent risk management platform.
Selling, general and administrative expenses were $8.1 million in the first quarter of 2011, compared to $4.3 million in the first quarter of 2010. The increase in SG&A expenses was primarily due to increased headcount, especially in client relations, corporate development and technology development.
GAAP net income was $6.7 million or $0.14 per diluted share in the first quarter of 2011, compared to $3.1 million or $0.05 per diluted share in the first quarter of 2010. On a pro forma basis, giving effect to the restricted stock outstanding and the conversion of all preferred shares into common shares at the beginning of the period, GAAP net income in the first quarter of 2011 was $0.17 per diluted share, compared to $0.08 per diluted share in the first quarter of 2010. Non-GAAP net income, excluding stock-based compensation, was $7.7 million or $0.20 per diluted share on a pro forma basis in the first quarter of 2011, compared to $3.3 million or $0.09 per diluted share on a pro forma basis in the first quarter of 2010.
Conference Call
RPX management will host a conference call and live webcast for analysts and investors at 5:00 p.m. EDT on May 25, 2011. Parties in the United States and Canada can access the call by dialing 1-877-941-2068, using conference code 4442002. International parties can access the call by dialing 1-480-629-9712, using conference code 4442002.
RPX will offer a live webcast of the conference call, which will also include forward-looking information. The webcast will be accessible from the "Investor Relations" section of the company's website at . The webcast will be archived there for a period of 30 days. An audio replay of the conference call will also be available two hours after the call and will be available for 30 days. To hear the replay, parties in the United States and Canada should call 1-800-406-7325 and enter conference code 4442002. International parties should call 1-303-590-3030 and enter conference code 4442002.
About RPX Corporation
RPX Corporation provides patent risk management solutions, offering defensive buying, acquisition syndication, patent intelligence and advisory services. By acquiring patents, RPX helps to mitigate and manage patent risk for its growing client network.
Use of Non-GAAP Financial Information
The accompanying news release dated May 25, 2011 contains non-GAAP financial measures. Tables are provided in the 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 net income and non-GAAP earnings 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 believes it is useful to report non-GAAP measures which exclude stock-based compensation expense because it believes such expense does not reflect the underlying performance of the Company's business operations. These 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 and trends and performance. Management uses these non-GAAP measures to evaluate the Company's financial results. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.
Safe Harbor Statement
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 the quotations from management in this press release, 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 impact of the current economic climate on the Company's business, the Company's ability to effectively manage its growth, 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," "will," "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 its Prospectus related to its initial public offering filed pursuant to Rule 424(b) under the Securities Act with the Securities and Exchange Commission on May 4, 2011. The Company does not intend, and undertakes no duty, to update any forward-looking statements to reflect future events or circumstances.
CONTACT: Investor Relations Julie Cunningham The Blueshirt Group +1.425.217.2632 [email protected] Media Relations Greg Spector RPX Corporation +1.415.717.4666 [email protected]
