Seeking Alpha

Vringo announces 2013 results; shares -4.9% AH

  • Vringo (VRNG) had 2013 revenue of $1.1M, and a net loss of $52.4M ($0.63/share). $41.7M of the net loss was from continuing ops, and the remainder from discontinued ops.
  • Legal costs totaled $20M, G&A and other expenses $6.3M, equity compensation $12M, and patent amortization costs $3.4M.
  • Vringo ended 2013 with $33.6M in cash/equivalents. Average 2013 operational cash burn was $2M/month, yielding full-year cash burn of $24M.
  • The company expects its burn rate to decrease in 2014, and thinks its year-end funds "will be sufficient" to support its 2014/2015 operations, even if there's no "significant revenue event."
  • Press release
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Comments (14)
  • mollysbuddy
    , contributor
    Comments (332) | Send Message
     
    The way V is acting after hours tells me that there are a lot of nuts out there that owned this stock that was expecting V to show a profit. They did state that they had enough cash on hand to last thru 2015, got to remember that folks........Just my thoughts......john
    10 Mar 2014, 07:15 PM Reply Like
  • Dean1111
    , contributor
    Comments (230) | Send Message
     
    Interesting, if they can maintain a 2 million per month burn that equates to 24 million per year. In GOOG award alone has been estimated by some to be worth near a billion. Do the math, that would allow 42 years of burning 2 mill per year. Again, VRNG is a steal and I'll keep adding shares.
    10 Mar 2014, 08:13 PM Reply Like
  • Robert K. Stuart
    , contributor
    Comments (156) | Send Message
     
    Nothing is going to move this stock until money is in the bank - face it, as far as investors are concerned, Google and ZTE are winning.
    10 Mar 2014, 09:05 PM Reply Like
  • Dean1111
    , contributor
    Comments (230) | Send Message
     
    You are right in that the stock isn't moving. This is partly due to its visibility that attracted a lot of novice investors who are nervous investors and it is trading like a penny stock. They don't seem to understand how valuable this stock is. Divide the number of share that are outstanding into the what the court judgments are at this point.
    I think that Google and ZTE are getting hammered. Every judgement has gone against them. I understand the bank isn't in the bank yet but once it is, the price of the stock will likely be $10 per share. Snooze and lose.
    11 Mar 2014, 12:11 AM Reply Like
  • eldongeb
    , contributor
    Comments (14) | Send Message
     
    I agree...the lack of money in the bank is a huge boat anchor to this stock. However there is a lot of good news as Justin Giles has pointed out.
    10 Mar 2014, 10:22 PM Reply Like
  • Dean1111
    , contributor
    Comments (230) | Send Message
     
    Eldongeb, I agree that there is a lot of good news, with their patents and success in litigation it is only a matter of time before the price of the stock doubles or triples. IMO, Vringo would be buying back shares now on the open market if they didn't need the cash for the next 12 months to get through the Google appeal, which might last that long. As soon as the court orders payment it would be quite impossible for the stock not to double because management will have the money to buy back shares if they are anywhere close to current levels.
    11 Mar 2014, 12:22 AM Reply Like
  • Jonathan Bluhm
    , contributor
    Comments (402) | Send Message
     
    This stock is a joke. If you were smart you sold your shares on the recent pop to the $5 range. Good luck longs. For now, I'm short. I may switch positions in the future, but as long as the appeals process is dragging on, VRNG will be burning through so much cash - the share price is headed to $3 sooner than it is headed to new highs.
    11 Mar 2014, 03:51 AM Reply Like
  • Covingtonium
    , contributor
    Comments (464) | Send Message
     
    Jonathan, I disagree. VRNG is burning through cash at the rate they have previously stated. If you are short, you had better have a very tight stop order in. This stock is going to explode at some point in time in 2014.
    11 Mar 2014, 02:59 PM Reply Like
  • Yorick
    , contributor
    Comments (596) | Send Message
     
    ZTE will pop the stock to $5-$5.50 and then frustrated longs will again drip it down to $4. The pop only occurs if details are released as to the $$. If ZTE is successful in navigating around injunctions, the drip will continue down to $3.25 until money is put in the bank towards the end of the year where hopefully Google delays are exhausted. At that point, I would hope, disgusted managment would pull an Elon Musk and hit the stock hard with buybacks, dividends and hedge fund position PRs...the point of being a public company is to reward shareholders which after 2 years is getting old.
    11 Mar 2014, 09:13 AM Reply Like
  • Kuala Kaimi
    , contributor
    Comments (589) | Send Message
     
    I like vringo's prospects and to me those that sell the highs aren't frustrated longs, they are investors who made some good money and sold for a profit. A very good profit too. For example if I buy today @$3.70 and sell at $5.50, I would not like to be called a frustrated long. I would like to be characterized as a SATISFIED investor that just made 48 %.

     

    Not every investor has to be a buy and hold investor. Selling is a big part of how an investor can protect profits. If vringo trades differently than the typical equity, I would not argue with those who chose to sell the peaks. Seems to be the nature of the stock and probably with my 20/20 hindsight, a great way to play.

     

    I can't argue with Jonathon either, that shorts can make a buck too. Its all good. Thanks for the discussion everyone.

     

    11 Mar 2014, 12:36 PM Reply Like
  • Dean1111
    , contributor
    Comments (230) | Send Message
     
    Great point!! Buy now while the stock is at $3.65, sell your shares at $5.50 for a 50% gain.

     

    Better yet, sell only half your shares at a 50% gain, and hold the other half in case the stock keeps climbing. Worst case scenario, the stock retreats down to around $4, or under, buy again and hold when the VRNG eventually climbs and keep repeating the cycle.

     

    Look at a longer term chart of VRNG and with a little patience, it isn't hard to make money being in VRNG. The stock has never been stronger.
    12 Mar 2014, 12:52 PM Reply Like
  • Kuala Kaimi
    , contributor
    Comments (589) | Send Message
     
    Buy low, sell high....cheers! Somethings just never change ;p

     

    I am considering getting personalized licence plates for my truck that say VRINGO
    12 Mar 2014, 01:11 PM Reply Like
  • RK13
    , contributor
    Comments (10) | Send Message
     
    To be clear, I have been and remain long on VRNG with a moderately large investment, but was somewhat disturbed by the announcement yesterday. I certainly did not expect a good revenue or earnings report but was somewhat taken aback by the attorney fees of $20M and the executive compensation of $12M in a company with a market cap of $300M. If a normal forty hour work week is considered for computation purposes, the legal fees are the ridiculous amount of $10,000/hour. Management needs to clearly explain the future burn rate and not simply state that it will be less during the remainder of this year. Almost all current news about VRNG has been positive, especially concerning GOOG and ZTE and one would think that Vringo is undervalued and severely miss priced. I truly believe that the reasons the stock is not priced at 15+ are the shareholder concerns about corporate transparency, the fear of dilution, exorbitant legal fees and the present executive compensation. In my past comments I have strongly praised the executive management and would now greatly appreciate hearing good explanations regarding these shareholder concerns, which should serve to create a resurgence of the stock price. As mentioned, I plan on remaining long and have no intention of selling in the near future.
    11 Mar 2014, 11:30 PM Reply Like
  • Kuala Kaimi
    , contributor
    Comments (589) | Send Message
     
    I will take an uninformed stab at explaining the cost of fees and such.

     

    Most work far more than 40 hours a week. And you are not just paying for a lawyer, you are paying for a law office. And in this case you are paying for some of the finest lawyers in the field. Wilan has lost their recent case vs Apple for instance, so the value of good legal team is paramount to unlocking victory in court.
    12 Mar 2014, 09:39 AM Reply Like
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