The performance of the stock in 2013 has been good with a 60% appreciation on a year to date basis. However, much of the spike happened in January. Recently, there has been a lot of activity due to the funding announced last month. The announcement of $50 Million financing has helped improve the outlook to a certain extent. The funds will give a lot of elbow room for the management to pursue certain aggressive strategies. The funds are to be used to support Unwired's long term mobile industry IP licensing strategy. The stock has retreated a bit from the highs. The intent of the company to pursue the licensing strategies aggressively was evident even at the time of the last earnings. The management had stated that the company would be executing a completely focused licensing strategy as a long-term industry platform for the realization of the intellectual property value across 2G, 3G, 4G technologies as well as cloud-based mobile applications and services. The transaction with Ericsson (ERIC), which had a zero cash up-front payment, was a deal with payments from Ericsson based on the revenue it generated. For example, for the first $100 million earned in revenue by Ericsson, Unwired will get 20%. The revenue flow for Unwired may take some time, but licensing is definitely a better strategy compared to litigation where the costs are higher, and risk is tremendous. There have been cases of success like Blue Calypso (BCYP) which got a settlement recently, but sometimes it takes a lot of time. Once the licensing revenues start, Unwired will be viewed in a totally different light. Over the years, Unwired has accumulated a huge deficit due to continuous losses. The situation needs to improve sooner rather than later otherwise any rally in the stock will not be easily sustainable.
