Finjan Holdings Inc. (FNJN), the patent licensing company run by CEO Phil Hartstein, posted a wider net loss in the second quarter of 2016 because of a $5.48 million accretion of series A preferred convertible shares.

East Palo Alto, California-based Finjan said its net loss was $4.58 million, or 20 cents a share, versus $2.64 million, or 12 cents a share, a year earlier. The company was expected to post a loss of 16 cents, according to the average analyst estimate.

Revenue increased to $6.5 million from $700,000. Finjan was expected to post revenue of just $150,000, according tp the average analyst estimate. Cost of revenue increased to $2.2 million from $60,000.

Selling, general and administrative expenses fell to $3.3 million from $4.6 million, helped by the end of the end of the trial in Finjan's enforcement action against Blue Coat Systems Inc. Finjan won a $39.5 million award from Blue Coat, which recently was upheld by the U.S. District Court in the Northern District of California.

Hartstein said in a statement that Finjan "successfully navigated through a very active quarter in our licensing and enforcement program."

For instance he noted that Finjan "secured -- for a third time from the Court -- an order upholding the $39.5 million judgment (plus pre and post judgment interest) against Blue Coat Systems."

Finjan also granted a license and settled its litigation with Proofpoint for $10.9 million, and signed a license -- outside of litigation -- with a European cloud-based networking company.

The company also filed a series of new cases against ESET and its affiliates in the U.S. and Germany.

Last week, Finjan filed for a preliminary injunction seeking to bar Blue Coat from selling its infringing WebPulse products in the U.S.

Hartstein also noted that Finjan's patents have been recognized as durable by the District Court in Blue Coat, the U.S. Patent and Trademark Office's Patent Trial and Appeal Board, where to date, 88% of inter partes review challenges have been denied or rescinded and only 12% have been instituted against only four of our patents."

"This quarter reflects an intersection in the company's efforts where the investment of time and effort to license and enforce our patents are beginning to produce recurring results," Hartstein said. "Looking ahead we continue to make strides towards diversifying our revenue through the launch of our emerging businesses as we build upon the Finjan brand, protect our IP built through our 20 year history in cybersecurity and ultimately deliver the greatest value to our licensees and our shareholders."

Finjan ended the quarter with cash and cash equivalents of $17.2 million, up from $6.1 million at year end 2015.

--To reach the reporter responsible for this story, please contact Dan Lonkevich at 707 318-7899 or dan@thepatentinvestor.com