ALEXANDRIA, VA--(Marketwired - Mar 31, 2014) - Marathon Patent Group, Inc. (
2013 Financial Results
Revenue was $3.4 million in 2013 compared with none in 2012. The Company commenced its business of patent acquisition and monetization with the acquisition of Sampo IP LLC in November 2012.
Loss from continuing operations decreased in 2013 to $3.7 million compared with $5.5 million in 2012. The reduction in the loss from continuing operations reflects the combined benefits of the increase in revenue for the year plus a reduction in other operating expenses more than offsetting increases in the direct cost of revenue and increased amortization from the Company's patent portfolio. Net cash used in operating activities for 2013 was $1.5 million.
During 2013, the Company realized $263,000 of income from its discontinued operations compared with a loss of $1.4 million in 2012, when the decision to discontinue the Company's prior business was made. During 2013, the Company completed the disposition of its discontinued operations.
Net loss for 2013 was $3.5 million compared with a net loss of $6.9 million in 2012. Loss per share from continuing operations was $0.81 in 2013, compared to $1.98 in 2012. Income per share from discontinued operations in 2013 was $.06 compared with a loss per share in 2012 of $.51. Total loss per share in 2013 was $.75 compared to a total loss per share of $2.49 in 2012.
The Company ended 2013 with a cash balance of $3.6 million and no debt.
CEO's Summary of 2013 Accomplishments and Portfolio Enforcement Activities
Doug Croxall CEO summed up the 2013 year as one of establishing the Company's operating foundation and setting the stage for growth in 2014 and beyond. Croxall commented that "2013 was a particularly important and successful year for Marathon in proving our revenue and business model and laying the groundwork for growth in 2014 and beyond. We accomplished a great deal during 2013, including generating $3.4 million in revenue; adding eight new patent portfolios to our patent asset base; expanding our flow of acquisition opportunities; improving our processes for evaluating and executing acquisition opportunities; raising new capital; and bringing in new shareholders. We launched our first patent licensing campaign in March 2013 and currently have eight different licensing campaigns underway that encompass 87 different defendants. We have now acquired nine patent portfolios with a total of 119 patents having claims that read across diversified technologies and subject matter. From our current patent portfolio, we expect to generate revenue in excess of $100 million over the next three to five years."
Mr. Croxall continued, "Having already generated over $3.4 million of revenue from settlements in our first year of operation is a testament to both the quality of our patents and our effectiveness of patent enforcement programs. Together with our strategic partner, IP Nav, we have now built a robust, highly scalable, proprietary patent monetization platform that gives us the capability to prosecute multiple concurrent licensing campaigns without substantial additions to overhead. I believe we have developed the base not only for substantial growth in 2014, but also the wherewithal to become one of the most successful patent acquisition and monetization companies in the world."
Following is a description of the patent enforcement activities of the various patent portfolios owned by the Company.
CyberFone Systems, LLC's portfolio includes patents that cover specific transactional data processing, telecommunications, network and database inventions, including financial transactions. During 2013, 9 settlements were completed. CyberFone currently has lawsuits outstanding against 11 defendants.
Relay IP, Inc.'s portfolio includes patents that enable multicasting on Internet protocol networks. During 2013, Relay filed 28 lawsuits. Three settlements were completed in 2013. IP Relay currently has lawsuits outstanding against 24 defendants.
Sampo IP, LLC's portfolio includes patents describing collaborative systems that entail centralized communication methods for storing information and pushing notifications to group participants. During 2013, Sampo filed 5 lawsuits. Three settlements were completed in 2013. Sampo currently has lawsuits outstanding against 7 defendants.
Vantage Point Technology, Inc.'s portfolio includes patents relating to a wide range of technologies including processor architecture in the mobile device marketplace. During 2013, Vantage Point filed 27 lawsuits. Vantage Point currently has lawsuits outstanding against 24 defendants.
Bismarck IP's portfolio includes patents relating to performance enhancement features and enabling technology within switching communication terminal equipment and in Private Branch Exchanges (PBX's) in a communication network.
CRFD Research, Inc.'s portfolio includes patents that cover key enabling wireless technologies including the transfer of active session among devices and web content transformation into formats compatible with destination devices. During 2014, CRFD has filed against 17 defendants.
Loopback Technologies, Inc.'s portfolio includes patents cover the automotive and related industries in the areas of occupant restraint and safety systems as well as automotive centric communications methodologies including sensing and detection technologies.
E2E Processing, Inc.'s portfolio includes patents relating to process automation in the production and enterprise resource planning space (ERP). During 2014, E2E has filed against 4 defendants.
Hybrid Sequence, Inc.'s portfolio includes patents related to frame relay technologies, a standardized wide area network technology that specifies the physical and logical link layers of digital telecommunications channels using a packet switching methodology.
In conclusion, Croxall wanted the Company's shareholders to be assured that management is focused and fully committed to continuing to build a portfolio of valuable assets and to continuing to strengthen and execute effective monetization activities.
About Marathon Patent Group:
Marathon Patent Group is a patent and patent rights acquisition and monetization company. We acquire patents and patent rights from owners ranging from individual inventors to Fortune 500 companies. Our strategy of acquiring patents that cover a varied scope of subject matter allows us to achieve diversity within our patent asset portfolio. We generate revenue with our diversified portfolio through actively managed concurrent monetization campaigns. This approach is expected to result in a long-term, diversified revenue stream.
Forward Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), not limited to Risk Factors relating to its patent business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.