CAMPBELL, CA — (Marketwired) — 04/04/16 — Inventergy Global, Inc. (NASDAQ: INVT) (“Inventergy”), today reported highlights from its financial results for the full year 2015 as well as operational highlights and achievements in 2015.
Revenue of $4,888,302 for the twelve months ended December 31, 2015, up 580% compared to the same period in the prior year. The increase was due to the Company–s successful sale of two patent families for $4 million, patent licensing and litigation settlement contracts which totaled $603,571 and access control security product/service lines acquired in the merger of $284,731.
Gross profit of $3,743,311 for the twelve months ended December 31, 2015, compared to negative gross profit of $(12,946) for the same period in the prior year. Gross profit margin was 77% for the full year 2015 as compared to a negative gross margin of -2% for full year 2014.
General and administrative expenses for the twelve months ended December 31, 2015 were $7,532,240, a 36% decrease compared to $11,728,973 for the same period in the prior year. The decrease was primarily a result of cost containment and prudent oversight of operational expenses such as patent costs and consulting fees, legal fees, business travel, and other general expense savings.
A 42% decrease in net loss to $11,733,549 for the twelve months ended December 31, 2015 compared to a net loss of $20,084,554 for the same period in the prior year.
An 81% decrease in net cash used in operating activities to $1,603,693 for the twelve months ended December 31, 2015 compared to net cash used in operating activities of $8,371,167 for the same period in the prior year.
Cash and cash equivalents of $554,556 as of December 31, 2015. The Company raised gross proceeds of $2,500,000 on January 26, 2016 for the sale of Series C Convertible Preferred Stock and warrants.
The Company owns approximately 742 currently active patents and patent applications as of December 31, 2015.
During Q1 of 2015, the Company entered into its first license agreement for a $2 million, 5-year license to its Huawei and Nokia Internet Multimedia Systems (IMS) patent portfolios. The license was granted to a mid-tier IMS telecommunications equipment supplier, at essentially the same effective royalty rate being offered in discussions with other IMS-related supplier companies.
In Q2 of 2015, Inventergy completed a $4 million transaction for the sale of two patent families from its Panasonic mobility portfolio.
In Q3 of 2015, Inventergy settled the litigation against Genband, a mid-tier IMS telecommunications equipment supplier, for an undisclosed amount.
In October 2015, the Company was granted ten newly issued patents in the US, Europe and Asia, which strengthened its presence in the global telecommunications industry.
In October 2015, the Company converted the Series A-1, A-2 and B Preferred Stock to common eliminating all of the redemption, anti-dilution, right of first refusal and similar rights from the original investments that were part of the formation of the Company.
In December 2015, the Company completed a 1 for 10 reverse stock split and regained Nasdaq compliance for the minimum $1 stock price requirement.
Inventergy–s Chief Executive Officer Joe Beyers commented, “2015 was an intense year for us as we executed on our corporate strategy and started to monetize our IP portfolio and successfully closed three transactions worth over $6 million. More recently we secured $2.5 million through the sale of our Series C Convertible Preferred Stock and warrants which is intended to help propel our corporate trajectory towards what we view as a strong pipeline of potential revenue. We also reached an agreement with one of our patent partners to amend the parties– patent purchase agreement resulting in a reduction in our liabilities of $17.3 million, including the elimination of $1.0 million of accrued interest expense, thereby significantly strengthening our balance sheet. Lastly, we obtained significant flexibility from our debt holder, Fortress, who agreed to defer certain debt amortization payments until July 1, 2016 which were previously scheduled to begin October 1, 2015. We remain committed to focusing our efforts on our robust pipeline of additional value-creation opportunities and to pursuing our efforts to drive significant larger revenue opportunities in 2016.”
Date: Monday, April 4, 2016
Time: 4:30 P.M. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers: (877) 407-8289
Dial in Number for International Callers (Outside of the U.S. & Canada): (201) 689-8341
The conference call will be hosted by Inventergy–s Chief Executive Officer Joe Beyers and Chief Financial Officer John Niedermaier, who will provide a financial and operational summary of the fourth quarter and full year 2015. To join the live conference call, please dial into one of the above referenced telephone numbers ten minutes prior to the scheduled conference call time.
If you are unable to participate in the call at this time, a replay will be available for 14 days starting on April 4, 2016 at approximately 10:30 P.M. ET. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 13633735.
Inventergy Global, Inc. (NASDAQ: INVT) is a Silicon Valley-based intellectual property company dedicated to identifying, acquiring and licensing the patented technologies of market-significant technology leaders. Led by IP industry pioneer and veteran Joe Beyers, the Company leverages decades of corporate experience, market and technology expertise, and industry connections to assist Fortune 500 companies in leveraging the value of their innovations to achieve greater returns. For more information about Inventergy Global, visit .
This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. These statements may be identified by the use of words like “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “will”, “should”, “seek” and similar expressions and include any projections or estimates set forth herein. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Inventergy and our management team, are inherently uncertain. A more complete description of these risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
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