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$NTIP Network-1 Reports Record Breaking Third Quarter 2016 Results
PDF NOVEMBER 11, 2016
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NEW YORK, Nov. 11, 2016 /PRNewswire/ -- Network-1 Technologies, Inc. (NYSE: NTIP) today announced financial results for the quarter ended September 30, 2016.

Network-1 had the largest quarterly revenues in its history with revenue of $34,326,000 for the three months ended September 30, 2016 as compared with revenue of $3,008,000 for the three months ended September 30, 2015. The increase in revenue of $31,318,000 for the three months ended September 30, 2016, was due primarily to additional licensing revenue of $31,000,000 from settlement and licensing agreements entered into with Apple Inc. and Dell, Inc. during the quarter. Revenue from royalty bearing licenses for patents decreased $232,000 or 14% from $1,658,000 to $1,426,000 for the three months ended September 30, 2016 compared to the three months ended September 30, 2015.

Network-1 had revenue of $59,963,000 for the nine months ended September 30, 2016 as compared to revenue of $10,382,000 for the nine months ended September 30, 2015. The increase in revenue of $49,581,000 for the nine months ended September 30, 2016, was due primarily to additional licensing revenue of $31,000,000 from settlement and licensing agreements with Apple Inc., and Dell, Inc. as well as a $17,500,000 settlement of a professional liability claim. Revenue from royalty bearing licenses for patents increased $70,000 or 1% from $8,593,000 to $8,663,000 for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015.

Network-1 reported net income of $10,832,000 or $0.46 per share (basic) and $0.43 per share (diluted) for the three months ended September 30, 2016 compared with net income of $407,000 or $0.02 per share (basic and diluted) for the three months ended September 30, 2015.

Network-1 reported net income for the nine months ended September 30, 2016 of $22,882,000 or $0.98 per share (basic) and $0.93 per share (diluted) as compared with net income of $1,717,000 or $0.07 per share (basic and diluted) for the nine months ended September 30, 2015.

At September 30, 2016, Network-1 had cash and cash equivalents of $57,759,000 and working capital of $50,179,000. Subsequent to the end of the third quarter, Network-1 entered into settlement and license agreements aggregating $5,000,000, a portion of which will be recorded as revenue for the quarter ended December 31, 2016.

Network-1 incurred current Federal, state and local income taxes of $3,817,000 and $26,000 for the quarter ended September 30, 2016 and September 30, 2015, respectively. The increase of $3,791,000 in such taxes was related to Network-1's full utilization of NOLs during the three months ended September 30, 2016 in connection with significant net income.

In September 2011, Network-1 initiated patent litigation against sixteen (16) data networking equipment manufacturers in the United States District Court for the Eastern District of Texas, Tyler Division, for infringement of its Remote Power Patent. Network-1 has now reached settlement and license agreements with twelve (12) of the original defendants. The remaining four defendants in the lawsuit are Avaya Inc., AXIS Communications Inc., Hewlett-Packard Company, and Juniper Networks, Inc. Network-1 seeks monetary damages based upon reasonable royalties. The litigation is currently scheduled for trial in 2017.

The Remote Power Patent relates to, among other things, delivering power over Ethernet cables to remotely power network connected devices including, among others, wireless access points, VoIP telephones and network cameras. In June 2003, the IEEE approved the 802.3af PoE Standard, which led to the rapid adoption of PoE. The IEEE also approved the 802.3at Power over Ethernet Plus (PoE Plus) Standard, which increased the maximum power delivered to network devices to 40-60 watts from the current 15 watts under the 802.3af Standard.

Network-1 currently has twenty-five (25) license agreements with respect to its Remote Power Patent, which include, among others, license agreements with Cisco Systems, Inc., Extreme Networks, Inc., Dell, Inc., Netgear Inc., Alcatel-Lucent USA, Sony Corporation, Shoretel Inc., Microsemi Corporation, Motorola Solutions, Inc., NEC Corporation, Samsung Electronics Co., Ltd., and several other data networking vendors.....
http://ir.network-1.com/press-releases/detail/58/network-1-reports-record-breaking-third-quarter-2016-results

Quarter over Quarter

Income
http://finance.yahoo.com/q/is?s=NTIP

Balance sheet
http://finance.yahoo.com/q/bs?s=NTIP

Shares Outstanding 23.3 million

Float approximately 12.7 million

SEC Filings
http://finance.yahoo.com/q/sec?s=NTIP+SEC+Filings

Major holders
http://finance.yahoo.com/q/mh?s=NTIP+Major+Holders