Finjan Holdings, Inc. (NASDAQ:FNJN), a cybersecurity company, is
providing shareholders with a financial update and highlight key
accomplishments for the fiscal year ended December 31, 2017.
Additional updates across Finjan’s operating subsidiaries and
investments are also highlighted and will be discussed during the
conference call to be held on January 23rd at 1:30 p.m. PT.
Unaudited Financial Highlights for the Full Year Fiscal
2017:
- 175% year-over-year increase in revenue to over $50.0
million
- Ended the year with approximately $41.0 million in cash or
$1.48 per share as compared to $13.7 million for the same period a
year ago
- Net income from operations was approximately $15.0 million or
$0.50 per share
- As a result of record performance in 2017 the Company redeemed
and retired $6.2 million or approximately 48,000 of Preferred
Series A-1 Shares in early January, 2018
Unaudited Financial Highlights for the Fourth Quarter of
2017:
- Nearly 180% year-over-year increase in fourth quarter revenues
to $23.4 million
“We nearly tripled our revenues to more than $50 million in 2017
fueled by a number of successful licensing and settlement
agreements and ended the year with a strong cash position,” said
Phil Hartstein, President and CEO of Finjan Holdings. “We closed
patent license agreements and cross licenses with both FireEye and
Sophos and ended a dispute with Avast resulting in an amicable
resolution. We signed new licenses with Veracode and Avira with
whom we also entered into a development relationship and cross
license to Finjan Mobile.”
IP Licensing and Settlement Updates:
- Actively engaged with more than 25 negotiations with
prospective licensees
- Transitioned four protracted licensing negotiations to
litigation in 2017, actively engaged in settlement discussions with
a number of defendants
- 1Q: Finjan and Sophos complete licensing and settlement
agreement including a cross license to Finjan Mobile
- 1Q: Finjan and Avast extend licensing deal to include newly
acquired AVG Technologies
- 1Q: Completed a license to Veracode prior to acquisition by
Computer Associates
- 2Q: Completed licensing and partnership agreements with Avira
resulting in joint development of Finjan Mobile’s Gen4
VitalSecurity VPN Browser
- 4Q: Finjan and FireEye complete a licensing and settlement
agreement including cross license to Finjan Mobile
Enforcement Update and Schedule:
January 2018
- Blue Coat I (5:13-cv-03999-BLF) the U.S. Court of Appeals for
the Federal Circuit (Case No. 2016-2520, “Federal Circuit”) issued
its decision on January 10 and is summarized as follows
- Finjan’s U.S. Patent No. 6,154,844 (the "'844 Patent")
confirmed valid and infringed, concluding Finjan “pioneered”
behavior blocking technology, damages remanded back to District
Court
- Finjan’s U.S. Patent Nos. 6,804,780 (the "'780 Patent"),
7,418,731 (the "'731 Patent") and 7,647,633 (the "'633 Patent")
confirmed valid and infringed, damages totaling $7.8M
unchanged
- Finjan’s U.S. Patent No. 6,965,968 (the "'968 Patent")
overturned infringement and $7.8M in related damages
“The new licenses and settlements we achieved coupled with our
continued IPR wins offer us even more affirmation. The recent
decision from the Federal Circuit indicates that Finjan ‘pioneered’
the technology we are licensing throughout the industry. This is
very promising for both our current cases and future litigation
ahead,” continued Mr. Hartstein. “We enter 2018 in the strongest
position ever with more than $40 million in cash, an upcoming Blue
Coat re-trial in February which will likely be followed by a
damages case in December and our long-awaited Symantec trial
getting underway in July. With numerous settlements, a strong
licensing pipeline, and a number of near-term catalysts we believe
we are ideally positioned to see revenue growth in this segment of
our business."
February 2018
- Blue Coat II (5:15-cv-03295-BLF) will convene a re-trial on
February 12, with a new Jury, on additional infringement issues
related to Finjan’s '844 Patent not included in the first case, and
new infringement issues related to Finjan’s U.S. Patent No.
8,677,494 (the "494 Patent")
June 2018
- Cisco (5:17-cv-00072-BLF) has a claim construction (“Markman”)
hearing scheduled for June 15, also expect a CMC in August after
the Courts decision on key claim terms
July 2018
- Symantec (3:14-cv-02998-HSG) has a trial date set to begin July
9 and last approximately two weeks
October 2018
- SonicWall (5:17-cv-04467-BLF) has a claim construction
(“Markman”) hearing scheduled for October 12
November 2018
- Germany Nullity (i.e. validity) Action will be heard, combined
by the German Court for both Blue Coat and ESET cases currently
pending
December 2018
- Blue Coat I & II; New Jury trial on damages and willfulness
set to begin December 10 related to the original ‘844 infringement
from Blue Coat I and any additional liability issues relating from
the February 2018 re-trial in Blue Coat II
- ESET (3:17-cv-00183-CAB) the Court expects trial “no later
than December 2018” per recent Court Order
Finjan has pending infringement lawsuits against Symantec Corp.,
Palo Alto Networks, Blue Coat Systems, Inc., ESET and its
affiliates, Cisco Systems, Inc., Sonicwall, Inc., Bitdefender and
its affiliates, Juniper Networks and Zscaler, Inc. relating
to, collectively, more than 20 patents in the Finjan portfolio. The
court dockets for the foregoing cases are publicly available on the
Public Access to Court Electronic Records (PACER)
website, www.pacer.gov, which is operated by the
Administrative Office of the U.S. Courts.
Finjan Mobile:
- VitalSecurity® VPN Secure Mobile Browser, leveraging
Finjan's existing patented inventions has had considerable traction
with more than 500,000 downloads to-date, over 900 reviews and a
4.5 out of 5-star rating
- Currently our mobile app is offered worldwide and is translated
into 11 different languages to expand addressable market in both
Android and IOS platforms
- VPN now offers the consumer the option to connect to over 30
locations around the world
“In 2017 we accomplished key milestones through our Finjan
Mobile subsidiary releasing our VitalSecurity VPN Mobile Browser in
September of 2017 and with more than 500,000 downloads to date,”
said Michael Noonan, CFO of Finjan Holdings. “We believe consumers
are taking note of Finjan’s enterprise-grade patented technology
being available on their mobile device to keep their data safe and
secure. We are actively moving forward with expanding our mobile
app worldwide and increasing the number of VPN locations to further
differentiate our offering. We look forward to reporting on our
future progress.”
CybeRisk:
- CybeRisk™ performed below expectations for the full year though
our investment in this subsidiary continues to be minimal
Finjan Blue:
- Although we are focused on the longer-term opportunities with
IBM through our Finjan Blue subsidiary, we have already recovered
our initial $2 million investment in a recent licensing deal
JVP Cyber Strategic Partners:
- Achieved its second early exit during 2017, fund sized has
increased considerably due to early exits
- Finjan currently has a $2.7 million outstanding capital
commitment to the fund which may be called at any time to finance
existing portfolio companies
Analyst and Investor Call with Management
A conference call to discuss full year 2017 results is scheduled
for 1:30 p.m. Pacific Time on January 23, 2018. Analysts,
investors, and other interested parties may access the conference
call by dialing 1-855-327-6837.
International callers can access the call by
dialing 1-778-327-3988.
An archived audio replay of the conference call will be
available for 2 weeks beginning at 4:30 pm Pacific Time on January
23, 2018 and can be accessed by
dialing 1-844-512-2921 and providing access code
10004172. International callers can access the replay by
dialing 1-412-317-6671. The call will also be archived on
Finjan's investor relations website.
ABOUT FINJANEstablished nearly 20
years ago, Finjan is a globally recognized leader in cybersecurity.
Finjan’s inventions are embedded within a strong portfolio of
patents focusing on software and hardware technologies capable of
proactively detecting previously unknown and emerging threats on a
real-time, behavior-based basis. Finjan continues to grow through
investments in innovation, strategic acquisitions, and partnerships
promoting economic advancement and job creation.
Finjan® is the registered trademark of Finjan Holdings,
Inc.; Finjan Mobile™, and VitalSecurity™ are the trademarks of
Finjan Holdings, Inc.
Follow Finjan Holdings, Inc.:
Twitter: @FinjanHoldings
LinkedIn: linkedin.com/company/finjan
Facebook: facebook.com/FinjanHoldings/
Cautionary Note Regarding Forward-Looking
StatementsExcept for historical information, the matters
set forth herein that are forward-looking statements involve
certain risks and uncertainties that could cause actual results to
differ. Potential risks and uncertainties include, but are not
limited to, Finjan’s expectations and beliefs regarding Finjan’s
licensing program, the outcome of pending or future enforcement
actions, the granting of Inter Partes Review (IPR) of our patents
or an unfavorable determination pursuant to an IPR or other
challenges at the USPTO of our patents, the enforceability of our
patents, the cost of litigation, timing of redemption of shares of
preferred stock, the unpredictability of our cash flows, our
ability to expand our technology and patent portfolio, the
continued use of our technologies in the market, our stock price,
changes in the trading market for our securities, regulatory
developments, general economic and market conditions, the market
acceptance and successful business, technical and economic
implementation of Finjan Holdings' intended operational plan; and
the other risk factors set forth from time to time in our filings
with the SEC, including our Annual Report on Form 10-K for the year
ended December 31, 2016, and the Company's periodic filings with
the SEC, copies of which are available free of charge at the SEC's
website at www.sec.gov or upon request from Finjan
Holdings, Inc. All forward-looking statements herein reflect our
opinions only as of the date of this release. These statements are
not guarantees of future performance and actual results could
differ materially from our current expectations. Finjan Holdings
undertakes no obligation, and expressly disclaims any obligation,
to update forward-looking statements herein in light of new
information or future events.
Investor Contact:Vanessa Winter
| Director of Investor Relations, Finjan HoldingsValter Pinto |
KCSA Strategic Communications(650) 282-3245 |
investors@finjan.com
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