ITUS Corp. (ITUS), the patent assertion company run by CEO Rob Berman, said its net loss in the fiscal fourth quarter ended Oct. 31, 2014 increased 7.8% as non-cash items outstripped revenue from patent assertion activities and licensing fees.
Los Angeles-based ITUS posted a net loss of $3.15 million, or 1 cent a share, in the fourth quarter, compared with a loss of $2.93 million, or 1 cent a share, a year ago.
Revenue from patent assertion and licensing rose to $1.38 million in the latest quarter, versus $388,850, a year ago. The revenue came from 22 licenses of its J-Channel window frame construction technology, Secure Web conference encryption technology and loyalty conversion plan patents. The licensing fees averaged $62,727.
ITUS spent about $700,000 in inventor royalties and litigation expenses to get that revenue.
For the fiscal year, ITUS posted a net loss of $9.6 million, or 4 cents, versus a net loss of $10.08 million, or 5 cents a year ago.
The company reported $3.67 million in revenue for the year including $2.48 million from 27 licenses of its J Channel window frame, Secure Web encryption and loyalty conversion plan patents in fiscal 2014. For the year, the licenses averaged $91,851. Nearly $2 million was spent on inventor royalties and litigation expenses to get that revenue.
Berman, who has run the company since October 2012, played down the net losses saying much had to do with non-cash charges.
He said the company reduced its operating costs during the year and reduced its cash used in operations by 25% to $2.38 million.
He also noted that the results don’t include a $9 million licensing settlement ITUS received from AU Optronics Corp., which occurred in December and will help the fiscal first quarter.
He declined to comment on the outlook for the first quarter.
The company had cash and cash equivalents of $5.86 million as of Oct. 31, 2014 and working capital of $4.5 million. The company said it believes based on available information today it has enough cash to last 12 months.
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