The recent results have not done much for the stock. While the CEO marked it as a “transformational quarter for Unwired Planet” the financial results were not too great. The net loss increased slightly. As per the CEO, "We are now executing a completely focused licensing strategy as a long-term industry platform for the realization of our intellectual property value across 2G, 3G, 4G technologies as well as cloud-based mobile applications and services. With the completion of the patent transaction with Ericsson, we have begun actively engaging priority licensing targets and are working closely with our partners to proceed in the most efficient way to enhance shareholder value." While this statement indicates the company's desire to leverage its technologies for getting more revenues, it seems that the impact on the actual numbers may not be immediate. The attempt to patent and license / monetize its technologies is the focus area for UPIP, and the patent transaction with Ericsson (ERIC) (zero cash up-front payment) was a step in this direction. As per the deal, for the first $100 million earned in revenue by Ericsson, Unwired will get 20%. More and more companies are attempting to monetize their technologies for enforcing their rights. MGT Capital Investments (MGT) has a multi-billion dollar patent infringement lawsuit going against several gaming companies. MGT also has entered in the highly potential sports wagering / online gambling business by its acquisition of FanTD LLC. For UPIP, recent successes in monetizing / licensing by other small companies should provide encouragement. The net loss of $12.2 million for the last quarter contained $4.47 million related to stock-based compensation. With a high accumulated deficit, it is important that the revenue inflows start sooner rather than latter. The stock is at crucial supports supports, and it is possible that it remains range bound for some time before there is a break on either side.
