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NETWORK-1 REPORTS THIRD QUARTER RESULTS

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Network-1 Technologies, Inc. (NYSE American: NTIP) today announced financial results for the quarter ended September 30, 2018.  
Network-1 had revenue of $1,798,000 for the three months ended September 30, 2018 as compared to revenue of $3,237,000 for the three months ended September 30, 2017. The decline in revenue of $1,439,000 for the three months ended September 30, 2018 was primarily due to several of Network-1s largest licensees ceasing to make royalty payments beginning in late November 2017 and January 2018 as a result of the November 2017 jury verdict in Network-1s trial with Hewlett-Packard, which found certain claims of Network-1’s Remote Power Patent invalid and not infringed by Hewlett-Packard (the HP Jury Verdict).

Excluding revenue from fully-paid licenses, revenue from Network-1s royalty bearing licenses decreased $466,000 from $2,264,000 for the three months ended September 30, 2017 to $1,798,000 for the three months ended September 30, 2018. 

Network-1 had revenue of $21,732,000 for the nine months ended September 30, 2018 as compared to revenue of $14,320,000 for the nine months ended September 30, 2017. The increase in revenue of $7,412,000 for the nine months ended September 30, 2018 was primarily due to revenue from a fully-paid license with Juniper Networks, Inc. of $12,700,000, a license initiation installment payment of $1,000,000 from Polycom, Inc. in accordance with a royalty bearing license and $6,320,000 of revenue from sale of Network-1s Avaya unsecured claim. Excluding revenue from Network-1s fully-paid license with Juniper Networks and sale of its Avaya unsecured claim for the nine months ended September 30, 2018, revenue from Network-1s royalty bearing licenses decreased $8,335,000 from $11,047,000 for the nine months ended September 30, 2017 to $2,712,000 for the nine months ended September 30, 2018.

The decrease was due primarily to several of Network-1s largest licensees ceasing to make royalty payments as a result of the HP Jury Verdict. Network-1 reported net income of $246,000 or $0.01 per share (basic and diluted) for the three months ended September 30, 2018 compared with net income of $648,000 or $0.03 per share (basic) and $.02 per share (diluted) for the three months ended September 30, 2017. The decrease in net income of $402,000 for the three months ended September 30, 2018 was primarily due to the loss of net income associated with several of Network-1s largest licensees ceasing to make royalty payments as a result of the HP Jury Verdict. …

[Read on via official release]

Source: US SEC
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8-K_for_NETWORK_1_TECHNOLOGIES_INC_8-K-11-16-2018