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FNJN: Settlement With Proofpoint Yields $10.9 Million

By Lisa Thompson

NASDAQ:FNJN

Finjan (FNJN) reached at $10.9 million settlement with Proofpoint last Friday, before the trial that was scheduled to start June 16, 2016. It will be paid in three installments: $4.3 million to be paid within three days of signing, $3.3 million on or before January 4, 2017, and $3.3 million on or before January 3, 2018. We have adjusted our model accordingly, raising revenues for Q2 2016 and the 2016 year. We had thought a license would have yielded $13 million and at $10.9 million we were in the ballpark. We are now at an estimate of $11.2 million in revenues and a loss of $0.27 for the year. For 2017 we are at $54 million and EPS of $0.85 per share in earnings. Between this and the equity raised from temporary preferred stock, the company is set for cash for the next two years.

Finjan is positioned to grow not only by pursuing IP licensing, but also by penetrating cybersecurity consulting services, and investing in new IP via R&D and in cybersecurity startups. We are hopeful of more settlements and/or licensing deals this year. In 2017 we expect it to collect over $40 million from Blue Coat if the ruling is upheld on appeal, and for the company to retire its new preferred stock.

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