Vringo Reports 2010 Second Quarter Results
NEW YORK, Aug 16, 2010 (GlobeNewswire via COMTEX) --
Vringo, Inc., (NYSE Amex:VRNG) a provider of video ringtones and personalization solutions for mobile devices, today announced financial results for the second quarter ended June 30, 2010.
Recent Highlights:
-- Second quarter revenues of $44,000, compared to $0 in the second quarter
of 2009
-- Successfully completed U.S. initial public offering raising gross
proceeds of $11 million
-- Finished quarter with $9.7 million of cash on hand
-- Number of commercial subscribers increased to 66,000, a 61% increase
from the previous quarter
-- Receives first U.S. patent
-- Signs partnership with T-Pain for new app
-- Announces intent to offer Vringo on Verizon V Cast App Store
Jon Medved, Chief Executive Officer, commented, "We are pleased with Vringo's 2010 second quarter results and operational accomplishments. First, we are delighted to have successfully completed the Company's initial public offering during the quarter and have smoothly transitioned to public ownership with a public valuation and a public currency. Operationally, we focused on validating our business model in certain test markets primarily in the developing world. We received data from test markets that we believe is favorable and will help us achieve our ultimate goal of penetrating the lucrative North American and Western European markets. We believe our financial performance for the quarter is consistent with the start-up nature of our business with our technology platform in place and our business model proving out in our initial test markets."
Andrew Perlman, President, said, "We are pleased with the subscriber growth that we have seen in our current service and are looking forward to several important milestones planned for the third and fourth quarters that have the potential to accelerate our business momentum. We believe the strong user behavior that we have seen in current markets has validated our model and will translate well to the bigger and higher spending markets where we intend to launch in the coming months."
Perlman continued, "We are excited about our upcoming launch of an exciting new app for Android and the iPhone with T-Pain, the popular music artist and personality. T-Pain's first application for the iPhone was one of the most successful app launches ever, and we have great hopes for this new joint app launch. We are targeting our first 'for pay' release via a carrier in the U.S. in the Verizon V Cast App Store for the fourth quarter. Both of these events are key milestones for our company."
Revenue for the three months ended June 30, 2010, was $44,000 as compared to zero for the three months ended June 30, 2009, and compared to $30,000 for the three months ended March 31, 2010, a 47 percent sequential increase. Our operating loss for the three months ended June 30, 2010, was $1.7 million, as compared to $1.1 million for the three months ended June 30, 2009. The rise in operating loss was primarily due to an increase in general & administrative expenses related to the initial public offering, and to the recording of approximately $0.4 million of expenses related to the granting of the management options. To a lesser extent, our marketing expenses increased as we raised awareness among end-users of the Vringo service and launched our service in new markets. Net loss for the three months ended June 30, 2010, was $4.6 million, or $5.20 per share, compared to a net loss of $1.3 million, or $3.59 per share, for the three months ended June 30, 2009.
Revenue for the six months ended June 30, 2010, was $74,000, as compared to zero in the year-ago six-month period. Operating loss for the six-month period was $3.0 million compared with $2.5 million during the comparable 2009 six-month period. Net loss for the six-month period 2010 was $6.6 million, or $10.54 per share, compared with net loss of $2.9 million, or $7.78 per share, in the year-ago six-month period.
At June 30, 2010, Vringo had cash and cash equivalents of $9.7 million, working capital of $7.5 million and stockholders' equity of $2.6 million.
Conference Call
Vringo will host a conference call today at 4:30 p.m. ET (Monday, August 16, 2010). During the call, Jon Medved, Chief Executive Officer and Andrew Perlman, President, will discuss the Company's quarterly performance and financial results.
The telephone number for the conference call is +1-877-407-9210 (U.S. callers) or +1-201-689-8049 (international callers). A live webcast of the call will also be available on the Company's website at http://ir.vringo.com and at www.InvestorCalendar.com. To listen to the live call online, please visit the site at least 10 minutes early to register, download and install any necessary audio software.
A webcast archive will be available for 90 days on the Company's website, and a telephone replay of the call will be available beginning approximately one hour following the call through 11:59 p.m. Sunday, November 14, 2010, and can be accessed by calling +1-877-660-6853 (U.S. callers) or +1-201-612-7415 (International callers) and entering account number 286 and conference ID number 354893.
Forward-Looking Statements
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Vringo expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a results of new information, future events or otherwise, except as required by law.
About Vringo
Founded in 2006, Vringo is bringing about the evolution of ringtones. With its award-winning video ringtone application and Web platform, Vringo transforms the basic act of making and receiving mobile phone calls into a highly visual, social experience. By installing Vringo's application, which is compatible with more than 200 handsets, users can create or take video, images and slideshows from virtually anywhere and make it into their personal call signature. For more information, visit http://www.vringo.com.
For more information about how video ringtones work, visit www.vringo.com/p_video_ringtones.html.
Vringo, Inc. and Subsidiary
(a Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except share and per share data)
Cumulative
from
inception
Three months Six months ended to June
ended June 30, June 30, 30,
------------------ ------------------ ----------
2010 2009 2010 2009 2010
------- --------- ------- --------- ----------
U.S.$ U.S.$ U.S.$ U.S.$ U.S.$
------- --------- ------- --------- ----------
Revenue 44 -- 74 -- 94
------- --------- ------- --------- ----------
Costs and Expenses*
Cost of revenue 34 -- 67 -- 98
Research and development 566 467 1,106 1,038 9,490
Marketing 600 404 1,040 896 7,564
General and administrative 573 276 855 574 5,285
------- --------- ------- --------- ----------
Total operating expenses 1,773 1,147 3,068 2,508 22,437
------- --------- ------- --------- ----------
Operating loss 1,729 1,147 2,994 2,508 22,343
Non-operating income (490) (8) (447) (15) (912)
Interest and amortization of
debt discount expense 3,355 155 4,009 320 4,837
Non-operating expenses -- -- 15 -- 113
Loss on extinguishment of
debt -- -- -- -- 321
------- --------- ------- --------- ----------
Loss before taxes on income 4,594 1,294 6,571 2,813 26,702
Income tax expense 18 21 38 40 32
------- --------- ------- --------- ----------
Net loss for the period 4,612 1,315 6,609 2,853 26,734
======= ========= ======= ========= ==========
Basic and diluted net loss
per common share (5.20) (3.59) (10.54) (7.78) (67.56)
======= ========= ======= ========= ==========
Weighted average number
of shares used in
computing basic and
dilutive net loss per
common share 887,567 366,782 627,174 366,782 395,714
======= ========= ======= ========= ==========
* The amount recorded for the three and six months ending June 30, 2010, and
2009, and the cumulative period from inception include $73, $150, $74, $45 and
$696, respectively, to related parties.
The notes in the Company's Form 10-Q filed with the U.S. Securities and Exchange
Commission form an integral part of these consolidated financial statements.
Vringo, Inc. and Subsidiary
(a Development Stage Company)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands except share and per share data)
December
June 30, 31,
2010 2009
-------- --------
U.S.$ U.S.$
Current assets
Cash and cash equivalents 9,692 744
Prepaid expenses and other current
assets 53 46
Accounts receivable 51 2
Deferred stock issuance costs -- 100
Short-term deposit (restricted) 20 2,602
Deferred tax assets -- short-term 31 24
-------- --------
Total current assets 9,847 3,518
-------- --------
Long-term deposit 12 12
-------- --------
Property and equipment, at cost, net
of $351 and
$306 accumulated depreciation as of
June 30, 2010,
and December 31, 2009, respectively 168 179
-------- --------
Deferred tax assets -- long-term 78 80
-------- --------
-------- --------
Total assets 10,105 3,789
======== ========
Current liabilities
Accounts payable and accrued
expenses* 805 876
Accrued compensation 355 304
Current maturities of venture loan 1,160 557
Bridge notes -- 1,912
-------- --------
Total current liabilities 2,320 3,649
-------- --------
Long-term liabilities
Accrued severance pay 325 334
Venture loan 2,569 3,146
Derivative liabilities on account of
warrants 2,274 1,070
-------- --------
Total long-term liabilities 5,168 4,550
-------- --------
Vringo, Inc. and Subsidiary
(a Development Stage Company)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands except share and per share data)
December
June 30, 31,
2010 2009
-------- --------
U.S.$ U.S.$
Commitments and contingencies
Temporary equity
Series B convertible and redeemable
preferred stock, $0.01
par value per share; 4,900,000
authorized; 765,465 shares
issued and outstanding as of December
31, 2009
(liquidation preference of, and
redeemable at, the greater of
fair value or $15.831 per share, or
$12.1 million, plus
declared but unpaid dividends, if
any) -- 11,968
-------- --------
Stockholders' equity (deficit)
Common stock, $0.01 par value per
share 28,000,000 and
14,000,000 authorized; 5,098,364 and
366,782 issued and
outstanding as of June 30, 2010, and
December 31, 2009,
respectively 51 22
Series A convertible preferred stock,
$0.01 par value per
share; 2,353,887 authorized; 392,314
issued and
outstanding as of December 31, 2009,
(liquidation preference
of $6.00 per share, or $2.35 million,
plus declared but unpaid
dividends, if any) -- 24
Additional paid-in capital 29,300 3,701
Deficit accumulated during
development stage (26,734) (20,125)
-------- --------
Total stockholders' equity (deficit) 2,617 (16,378)
-------- --------
Total liabilities and stockholders'
equity 10,105 3,789
======== ========
* The amounts recorded as of June 30, 2010, and December
31, 2009, include $38 and $46 to a related party,
respectively.
The notes in the Company's Form 10-Q filed with the U.S.
Securities and Exchange Commission form an integral part
of these consolidated financial statements.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Vringo, Inc.
CONTACT: Vringo, Inc. Jonathan Medved, CEO +1 646-525-4319 x 2501 jon@vringo.com Crescendo Communications, LLC Investor Relations Firm John J. Quirk David K. Waldman +1 212-671-1020 vrng@crescendo-ir.com