SAN FRANCISCO, May 1, 2018
/PRNewswire/ -- RPX Corporation (NASDAQ: RPXC), the leading
provider of patent risk and discovery management solutions, today
announced its financial results for the first quarter ended
March 31, 2018.
Highlights
- Cash provided by operating activities in the first quarter
ended March 31, 2018 was $33.2
million.
- The Company generated $15.1
million of free cash flow in the quarter.
- Total revenue for the quarter was $67.1
million compared to $75.4
million in the prior year period.
- Subscription revenue from patent risk management
services—including insurance—was $40.5
million compared to $47.0
million in the prior year period.
- Discovery services revenue was $20.4
million compared to $18.0
million in the prior year period.
- This quarter's results and prior periods are presented under
the new revenue recognition standard, ASC 606.
Management noted that the quarter's discovery services revenue
included the positive impact from a few large European review
projects ramping down slower than anticipated.
Summary Results
Revenue for the first quarter of 2018 and 2017 was $67.1 million and $75.4
million, respectively.
GAAP net income for the first quarter was $0.1 million or $0.00 per diluted share, compared to $5.7 million or $0.11 per diluted share in the first quarter of
2017.
Non-GAAP net income for the first quarter, which excludes
stock-based compensation, the amortization of acquired intangibles
and their related tax effects, was $4.9
million or $0.10 per diluted
share, compared to $9.2 million or
$0.19 per diluted share in the first
quarter of 2017.
The Company generated free cash flow of $15.1 million of free cash flow in the first
quarter ended March 31, 2018, which it defines as cash flow
from operating activities less capital expenditures such as
property and equipment and patent assets. Non-GAAP adjusted EBITDA
was $37.1 million for the first
quarter of 2018, less net patent spend of $17.3 million, resulting in non-GAAP adjusted
EBITDA less net patent spend, of $19.8
million for the first quarter of 2018.
As of March 31, 2018, RPX's patent segment had
approximately 320 clients, consisting of patent risk management
network members and insurance clients.
Net patent acquisition spend during the quarter totaled
$17.3 million, and included 12 patent
transactions.
As of March 31, 2018, RPX had cash, cash equivalents and
short-term investments of $168.2
million.
New Accounting Standard
RPX adopted Accounting Standards Codification ("ASC") 606,
Revenue from Contracts with Customers ("ASC 606") as of
January 1, 2018 using the full
retrospective method. The prior periods presented here have been
adjusted to reflect the adoption of ASC 606.
Transaction Announcement
Separately, RPX today announced it has entered into a definitive
agreement to be acquired by HGGC, a leading middle market private
equity firm, in an all-cash transaction valued at approximately
$555 million. Due to the strategic
review process, the Company did not repurchase shares during the
first quarter. Further, as part of the announced agreement, the
Company will suspend its dividend.
Due to the announced transaction, RPX will not be hosting the
conference call and webcast previously scheduled for Tuesday, May 8, 2018 to discuss its first quarter
2018 financial results and will not be updating previously
disclosed guidance.
About RPX
RPX Corporation (NASDAQ: RPXC) is the leading provider of
patent risk and discovery management solutions. Since its founding
in 2008, RPX has introduced efficiency to the patent market by
providing a rational alternative to litigation. The San
Francisco-based company's pioneering approach combines principal
capital, deep patent expertise, and client contributions to
generate enhanced patent buying power. By acquiring patents and
patent rights, RPX helps to mitigate and manage patent risk for its
growing client network.
As of March 31, 2018, RPX had invested over $2.4
billion to acquire more than 26,000 US and international
patent assets and rights on behalf approximately 320 clients in
eight key sectors: automotive, consumer electronics and PCs,
E-commerce and software, financial services, media content and
distribution, mobile communications and devices, networking, and
semiconductors.
RPX subsidiary Inventus is a leading international
discovery management provider focused on reducing the costs and
risks associated with the discovery process through the effective
use of technology solutions. Inventus has been providing
litigation support services to corporate legal departments, law
firms and government agencies since 1991.
Use of Non-GAAP Financial Information
This news release dated May 1, 2018 contains non-GAAP
financial measures. Tables are provided in this news release that
reconcile the historical non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP). These non-GAAP
financial measures include non-GAAP cost of revenue, non-GAAP
selling, general and administrative expenses, non-GAAP provision
for income taxes, non-GAAP net income, non-GAAP adjusted EBITDA,
non-GAAP net income per share, non-GAAP adjusted EBITDA less net
patent spend, and free cash flow.
To supplement the Company's condensed consolidated financial
statements presented on a GAAP basis, management believes that
these non-GAAP measures provide useful information about the
Company's core operating results and thus are appropriate to
enhance the overall understanding of the Company's past financial
performance and its prospects for the future. Management is
excluding from some or all of its non-GAAP operating results (1)
stock-based compensation expenses (inclusive of related employer
payroll taxes), (2) the amortization of acquired intangible assets
(other than patents), and (3) the related tax effects of these
exclusions.
Management uses these non-GAAP measures to evaluate the
Company's financial results and trends, allocate internal
resources, prepare and approve our annual budget, develop short-
and long-term operating plans, assess the health of our business
and determine company-wide incentive compensation. Management
believes these non-GAAP measures may prove useful to investors who
wish to consider the impact of certain items when comparing the
Company's financial performance with that of other
companies. The adjustments to the Company's GAAP results are
made with the intent of providing both management and investors a
more complete understanding of the Company's underlying operational
results, trends and performance.
There are limitations in using non-GAAP financial measures
because non-GAAP financial measures are not prepared in accordance
with GAAP and may be different from non-GAAP financial measures
used by other companies. The non-GAAP financial measures are
limited in value because they exclude certain items that may have a
material impact on our reported financial results. In addition,
they are subject to inherent limitations as they reflect the
exercise of judgment by management about which items are adjusted
to calculate our non-GAAP financial measures. Management
compensates for these limitations by analyzing current and future
results on a GAAP basis as well as a non-GAAP basis and also by
providing GAAP measures in our public disclosures.
The presentation of additional information should not be
considered in isolation or as a substitute for or superior to
financial results determined in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measure and not to
rely on any single financial measure to evaluate our business.
Notice to Investors and Security Holders
The tender offer for the outstanding common stock of RPX
Corporation ("RPX") related to the acquisition of RPX referred to
in this communication has not yet commenced. This
communication is neither a recommendation, an offer to purchase nor
a solicitation of an offer to sell any securities. The
solicitation and the offer to buy the shares of RPX's common stock
will be made pursuant to an offer to purchase and related materials
that Riptide Parent, LLC ("Parent") and Riptide Purchaser, Inc.
("Purchaser") intend to file with the Securities and Exchange
Commission (the "SEC"). At the time the tender offer is
commenced, Purchaser will file a Tender Offer Statement on Schedule
TO with the SEC, and thereafter RPX will file a
Solicitation/Recommendation Statement on Schedule 14D-9 with
respect to the tender offer. The Tender Offer Statement
(including an offer to purchase, a related letter of transmittal
and other offer documents) and the Solicitation/Recommendation
Statement will contain important information that should be read
carefully and considered before any decision is made with respect
to the tender offer. RPX, Purchaser and Parent will file
other relevant materials in connection with the proposed
acquisition of RPX by Purchaser pursuant to the terms of the merger
agreement. RPX, Purchaser and Parent intend to mail these
documents to the stockholders of RPX. All of the tender offer
materials (and all other materials filed by RPX with the SEC) will
also be available free of charge from the SEC through its website
at www.sec.gov. INVESTORS AND STOCKHOLDERS OF RPX ARE ADVISED
TO READ THE SCHEDULE TO AND THE SCHEDULE 14D-9, INCLUDING THE
SOLICITATION/RECOMMENDATION STATEMENT OF RPX, AS EACH MAY BE
AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AS WELL AS ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE
CAREFULLY AND IN THEIR ENTIRETY PRIOR TO MAKING ANY DECISIONS WITH
RESPECT TO THE TENDER OFFER OR WHETHER TO TENDER THEIR SHARES OF
RPX COMMON STOCK PURSUANT TO THE OFFER, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION (INCLUDING THE
TERMS AND CONDITIONS OF THE TENDER OFFER) AND THE PARTIES
THERETO.
Forward-Looking Statements
Certain statements in this communication are forward-looking
statements, including, without limitation, the statements made
concerning the pending acquisition of RPX by Purchaser. In some
cases, you can identify forward-looking statements by the following
words: "may," "will," "could," "would," "should," "expect,"
"intend," "plan," "anticipate," "believe," "estimate," "predict,"
"project," "aim," "potential," "continue," "ongoing," "goal,"
"can," "seek," "target" or the negative of these terms or other
similar expressions, although not all forward-looking statements
contain these words. These statements reflect RPX's current views
concerning future events, including the planned completion of the
tender offer and the anticipated merger, and are based on a number
of assumptions that could ultimately prove inaccurate. As a general
matter, forward-looking statements are those focused upon
anticipated events or trends, expectations, and beliefs relating to
matters that are not historical in nature. Such forward-looking
statements are subject to uncertainties and factors relating to
RPX's operations and business environment, all of which are
difficult to predict and many of which are beyond the control of
RPX. Among others, the following factors could cause actual results
to differ materially from those set forth in the forward-looking
statements: (i) uncertainties as to the timing of the tender offer
and the anticipated merger; (ii) uncertainties as to how many RPX
stockholders will tender their shares of RPX common stock in the
anticipated merger; (iii) the possibility that competing offers
will be made, (iv) the possibility that various closing conditions
for the transaction may not be satisfied or waived; (v) the risk
that the merger agreement may be terminated in circumstances
requiring RPX to pay a termination fee; (vi) risks related to
obtaining the requisite consents to the tender offer and the
anticipated merger, including, without limitation, the risk that a
regulatory approval that may be required for the proposed
transaction, including under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 (HSR Act) and the German Act of Restraints
of Competition 1957, as amended (GWB), is delayed, is not obtained,
or is obtained subject to conditions that are not anticipated;
(vii) the possibility that the transaction may not be timely
completed, if at all; (viii) the risk that, prior to the completion
of the transaction, if at all, RPX's business and its relationships
with employees, collaborators, vendors and other business partners
could experience significant disruption due to transaction-related
uncertainty; (ix) the risk that stockholder litigation in
connection with the tender offer or the anticipated merger may
result in significant costs of defense, indemnification and
liability; and (x) the risks and uncertainties pertaining to RPX's
business, including those detailed under "Risk Factors" and
elsewhere in RPX's public periodic filings with the SEC, as well as
the tender offer materials to be filed by Purchaser and the
Solicitation/Recommendation Statement to be filed by RPX in
connection with the tender offer. Other factors that could cause
actual results to differ materially include those set forth in
RPX's SEC reports, including, without limitation, the risks
described in RPX's Annual Report on Form 10-K for its fiscal year
ended December 31, 2017, which is on
file with the SEC. The reader is cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. All forward-looking statements are qualified in
their entirety by this cautionary statement and RPX undertakes no
obligation to revise or update this report to reflect events or
circumstances after the date hereof, except as required by law.
|
Contacts:
|
|
|
Investor
Relations
|
Media
Relations
|
JoAnn
Horne
|
Jen Costa
|
Market Street
Partners
|
RPX
Corporation
|
+1
415-445-3233
|
+1
415-852-3180
|
ir@rpxcorp.com
|
media@rpxcorp.com
|
|
|
|
|
|
|
RPX
Corporation
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Revenue
|
$
|
67,121
|
|
|
$
|
75,415
|
|
Cost of
revenue
|
42,230
|
|
|
44,130
|
|
Selling, general and
administrative expenses
|
24,252
|
|
|
21,728
|
|
Operating
income
|
639
|
|
|
9,557
|
|
Interest and other
income (expense), net:
|
|
|
|
Interest
income
|
327
|
|
|
165
|
|
Interest
expense
|
(11)
|
|
|
(908)
|
|
Other income
(expense), net
|
546
|
|
|
210
|
|
Total interest and
other income (expense), net
|
862
|
|
|
(533)
|
|
Income before
provision for income taxes
|
1,501
|
|
|
9,024
|
|
Provision for income
taxes
|
1,421
|
|
|
3,369
|
|
Net income
|
$
|
80
|
|
|
$
|
5,655
|
|
|
|
|
|
Net income per
share:
|
|
|
|
Basic
|
$
|
—
|
|
|
$
|
0.12
|
|
Diluted
|
$
|
—
|
|
|
$
|
0.11
|
|
Weighted-average
shares used in computing net income per share:
|
|
|
|
Basic
|
49,755
|
|
|
48,676
|
|
Diluted
|
50,267
|
|
|
49,305
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.05
|
|
|
$
|
—
|
|
|
|
|
RPX
Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
159,220
|
|
|
$
|
138,710
|
|
Short-term
investments
|
9,027
|
|
|
18,455
|
|
Restricted
cash
|
192
|
|
|
249
|
|
Accounts receivable,
net
|
77,485
|
|
|
63,860
|
|
Prepaid expenses and
other current assets
|
26,228
|
|
|
34,398
|
|
Total current
assets
|
272,152
|
|
|
255,672
|
|
Patent assets,
net
|
119,619
|
|
|
131,888
|
|
Property and
equipment, net
|
5,025
|
|
|
5,090
|
|
Intangible assets,
net
|
47,716
|
|
|
49,087
|
|
Goodwill
|
72,511
|
|
|
70,756
|
|
Restricted cash, less
current portion
|
968
|
|
|
968
|
|
Deferred tax
assets
|
27,257
|
|
|
27,939
|
|
Other
assets
|
18,985
|
|
|
20,233
|
|
Total
assets
|
$
|
564,233
|
|
|
$
|
561,633
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
3,610
|
|
|
$
|
2,225
|
|
Accrued
liabilities
|
11,011
|
|
|
15,736
|
|
Deferred
revenue
|
89,246
|
|
|
85,790
|
|
Other current
liabilities
|
2,115
|
|
|
1,485
|
|
Total current
liabilities
|
105,982
|
|
|
105,236
|
|
Deferred revenue, less current
portion
|
349
|
|
|
484
|
|
Deferred tax
liabilities
|
3,697
|
|
|
3,657
|
|
Other
liabilities
|
11,012
|
|
|
11,104
|
|
Total
liabilities
|
121,040
|
|
|
120,481
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
5
|
|
|
5
|
|
Additional paid-in
capital
|
378,748
|
|
|
376,793
|
|
Retained
earnings
|
68,390
|
|
|
70,808
|
|
Accumulated other
comprehensive loss
|
(3,950)
|
|
|
(6,454)
|
|
Total stockholders'
equity
|
443,193
|
|
|
441,152
|
|
Total liabilities and
stockholders' equity
|
$
|
564,233
|
|
|
$
|
561,633
|
|
|
|
|
RPX
Corporation
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Operating
activities
|
|
|
|
Net income
|
$
|
80
|
|
|
$
|
5,655
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
32,593
|
|
|
35,731
|
|
Stock-based
compensation
|
3,690
|
|
|
2,734
|
|
Amortization of
premium on investments
|
68
|
|
|
471
|
|
Deferred income
taxes
|
580
|
|
|
1,911
|
|
Unrealized foreign
currency gain
|
(751)
|
|
|
(169)
|
|
Other
|
81
|
|
|
55
|
|
Changes in assets and
liabilities, net of business acquired:
|
|
|
|
Accounts
receivable
|
(13,126)
|
|
|
32,303
|
|
Prepaid
expenses and other assets
|
9,543
|
|
|
(8,000)
|
|
Accounts
payable
|
1,348
|
|
|
(819)
|
|
Accrued and
other liabilities
|
(4,259)
|
|
|
(5,624)
|
|
Deferred
revenue
|
3,320
|
|
|
6,996
|
|
Net cash
provided by operating activities
|
33,167
|
|
|
71,244
|
|
Investing
activities
|
|
|
|
Purchases of
investments
|
(3,250)
|
|
|
(3,875)
|
|
Maturities of
investments
|
12,515
|
|
|
25,875
|
|
Purchases of property
and equipment
|
(731)
|
|
|
(362)
|
|
Acquisitions of
patent assets
|
(17,321)
|
|
|
(27,421)
|
|
Net cash used
in investing activities
|
(8,787)
|
|
|
(5,783)
|
|
Financing
activities
|
|
|
|
Repayment of
principal on term debt
|
—
|
|
|
(1,250)
|
|
Proceeds from
exercise of stock options
|
142
|
|
|
422
|
|
Taxes paid related to
net-share settlements of restricted stock units
|
(1,895)
|
|
|
(1,708)
|
|
Payments of capital
leases
|
(38)
|
|
|
(104)
|
|
Payments of dividends
to stockholders
|
(2,498)
|
|
|
—
|
|
Repurchase of common
stock
|
—
|
|
|
(4,491)
|
|
Net cash used
in financing activities
|
(4,289)
|
|
|
(7,131)
|
|
Foreign-currency
effect on cash, cash equivalents, and restricted cash
|
362
|
|
|
35
|
|
Net increase
in cash, cash equivalents, and restricted cash
|
20,453
|
|
|
58,365
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
139,927
|
|
|
101,576
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
160,380
|
|
|
$
|
159,941
|
|
|
|
|
RPX
Corporation
|
Reconciliation of
GAAP to Non-GAAP Net Income Per Share
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Net income
|
$
|
80
|
|
|
$
|
5,655
|
|
Stock-based
compensation[1]
|
3,868
|
|
|
2,875
|
|
Amortization of
acquired intangible assets[2]
|
2,172
|
|
|
2,348
|
|
Tax effects of
non-GAAP exclusions[3]
|
(1,226)
|
|
|
(1,639)
|
|
Non-GAAP net
income
|
$
|
4,894
|
|
|
$
|
9,239
|
|
|
|
|
|
Non-GAAP net income
per share:
|
|
|
|
Basic
|
$
|
0.10
|
|
|
$
|
0.19
|
|
Diluted
|
$
|
0.10
|
|
|
$
|
0.19
|
|
Weighted-average
shares used in computing non-GAAP net income per share:
|
|
|
|
Basic
|
49,755
|
|
|
48,676
|
|
Diluted
|
50,267
|
|
|
49,305
|
|
|
|
|
RPX
Corporation
|
Reconciliation of
GAAP to Non-GAAP Cost of Revenue
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Cost of
revenue
|
$
|
42,230
|
|
|
$
|
44,130
|
|
Stock-based
compensation[1]
|
(81)
|
|
|
(95)
|
|
Amortization of
acquired intangible assets[2]
|
(523)
|
|
|
(525)
|
|
Non-GAAP cost of
revenue
|
$
|
41,626
|
|
|
$
|
43,510
|
|
|
|
|
RPX
Corporation
|
Reconciliation of
GAAP to Non-GAAP Selling, General and Administrative
Expenses
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Selling, general and
administrative expenses
|
$
|
24,252
|
|
|
$
|
21,728
|
|
Stock-based
compensation[1]
|
(3,787)
|
|
|
(2,780)
|
|
Amortization of
acquired intangible assets[2]
|
(1,649)
|
|
|
(1,823)
|
|
Non-GAAP selling,
general and administrative expenses
|
$
|
18,816
|
|
|
$
|
17,125
|
|
|
|
|
RPX
Corporation
|
Reconciliation of
GAAP to Non-GAAP Provision for Income Taxes
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Provision for income
taxes
|
$
|
1,421
|
|
|
$
|
3,369
|
|
Tax effects of
non-GAAP exclusions[4]
|
1,226
|
|
|
1,639
|
|
Non-GAAP provision
for income taxes
|
$
|
2,647
|
|
|
$
|
5,008
|
|
|
|
|
RPX
Corporation
|
Reconciliation of
Net Income to Non-GAAP Adjusted EBITDA Less Net Patent
Spend
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Net income
|
$
|
80
|
|
|
$
|
5,655
|
|
Provision for income
taxes
|
1,421
|
|
|
3,369
|
|
Interest and other
(income) expense, net
|
(862)
|
|
|
533
|
|
Stock-based
compensation[1]
|
3,868
|
|
|
2,875
|
|
Depreciation and
amortization
|
32,593
|
|
|
35,731
|
|
Non-GAAP adjusted
EBITDA[4]
|
37,100
|
|
|
48,163
|
|
Net patent
spend
|
(17,321)
|
|
|
(27,172)
|
|
Non-GAAP adjusted
EBITDA less net patent spend
|
$
|
19,779
|
|
|
$
|
20,991
|
|
|
|
|
RPX
Corporation
|
Reconciliation of
Cash Provided by Operating Activities to Free Cash
Flow
|
(in
thousands)
|
(unaudited)
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Net cash provided by
operating activities
|
$
|
33,167
|
|
|
$
|
71,244
|
|
Purchases of property
and equipment
|
(731)
|
|
|
(362)
|
|
Acquisitions of patent
assets
|
(17,321)
|
|
|
(27,421)
|
|
Free cash
flow[6]
|
$
|
15,115
|
|
|
$
|
43,461
|
|
|
|
|
|
|
|
RPX
Corporation
|
|
Additional
Metrics
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
Operating
Metrics
|
|
2018
|
|
2017
|
Gross patent
spend
|
|
$
|
19,464
|
|
|
$
|
62,795
|
|
Net patent
spend
|
|
17,321
|
|
|
27,172
|
|
|
|
|
|
|
|
|
As of and for the
Three Months
Ended March 31,
|
Financial
Metrics
|
|
2018
|
|
2017
|
Subscription
revenue[5]
|
|
$
|
40,540
|
|
|
$
|
47,046
|
|
Fee-related
revenue
|
|
6,202
|
|
|
10,343
|
|
Discovery
revenue
|
|
20,379
|
|
|
18,026
|
|
Total
revenue
|
|
$
|
67,121
|
|
|
$
|
75,415
|
|
Cash, cash
equivalents and short-term investments
|
|
$
|
168,247
|
|
|
$
|
226,606
|
|
Deferred revenue,
current and non-current
|
|
$
|
89,595
|
|
|
$
|
105,847
|
|
|
|
|
|
[1]
|
RPX excludes
stock-based compensation and related employer payroll taxes from
its non-GAAP financial measures.
|
[2]
|
RPX excludes
amortization expense related to intangible assets (other than
patents) acquired in conjunction with the acquisition of businesses
from its non-GAAP financial measures.
|
[3]
|
Amount reflects
income taxes associated with the above noted non-GAAP
exclusions.
|
[4]
|
RPX calculates
non-GAAP adjusted EBITDA as GAAP earnings before other income or
expenses, net, provision for income taxes, depreciation,
amortization, and stock-based compensation expenses (inclusive of
related employer payroll taxes).
|
[5]
|
Subscription revenue
is comprised of revenue generated from membership subscription
services, premiums earned, net of ceding commissions, from
insurance policies, and management fees related to its insurance
business.
|
[6]
|
Free cash flow is a
non-GAAP financial measure which the Company defines as cash flow
from operating activities less capital expenditures such as
property and equipment and patent assets.
|
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SOURCE RPX Corporation