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Gapped up this morning- I would get in before financials( due * the end of August ). Currently .94
Posts: 292 | Registered: Mar 2006
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I agree, they will announce the value of the deals they have made over the last few months, I suspect in the tens of millions total, and may announce another dividend.
Posts: 35 | Registered: May 2006
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They announced 10K late filing today but they always file a few days to a week after extension --- The reason for extension was CD's no longer owing on, and how to classify the financials from a company acquired within the quarter.
PPS may drop a bit till quarterly, but I would radar this!
Posts: 292 | Registered: Mar 2006
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Patriot Scientific Confirms PENTAX Joins Growing Roster of Global Manufacturers Licensed to Use the Moore Microprocessor Patent(TM) Portfolio Thursday June 29, 8:48 am ET PENTAX Becomes Seventh Major System Manufacturer During 2006 to Purchase Rights to Use Fundamental MMP Portfolio Technologies
CARLSBAD, Calif., - Patriot Scientific Corporation (OTC Bulletin Board: PTSC - News) confirmed today that PENTAX Corporation has agreed to purchase, pending approval by its board, a license to use the Moore Microprocessor Patent(TM) (MMP) Portfolio. Six other major system manufacturers have purchased MMP licenses this year. Prior licensees include HP, Casio, Fujitsu, Sony and Nikon as well as Seiko Epson, whose board approved this week its earlier-announced agreement to purchase an MMP license.
Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense(TM), a TPL Group enterprise, exclusively manages. The MMP Portfolio patents, filed in the 1980s, cover techniques that have become essential to consumer and commercial digital systems ranging from DVD players, cell phones and portable music players, to communications infrastructure, medical equipment and automobiles.
"We are delighted to confirm that PENTAX is the fourth global leader to agree to purchase an MMP license this month," said David Pohl, Patriot Scientific chairman and CEO. "This further demonstrates that our MMP licensing program is strong and gaining momentum as well as increasing the mounting evidence of the strength of our jointly owned patent portfolio." He confirmed that latest reports from the licensing team indicate that now some 300 companies have been put on notice of likely infringement of one or more patents included in the MMP portfolio.
"Our roster of MMP Portfolio licensees is beginning to look like the 'Who's Who' in the world of Intellectual Property," said Mac Leckrone, Alliacense president. "PENTAX along with prior licensees are each in their own right leading developers of intellectual property; and it is therefore gratifying to have them quickly recognize the import of the fundamental technologies protected by the MMP Portfolio." Leckrone announced that as the first-round MMP Portfolio licensing berths in many industry sectors are being captured, license rates are increasing according to plan. At this stage of the licensing program, the licensing group is continuing to focus on industry leaders whose management is empowered to make quick strategic business decisions.
"This is another event demonstrating that Patriot Scientific has successfully completed its exciting transition within the past year to become a profitable company whose primary revenues are currently based upon licenses of our valuable intellectual property," said Pohl. "In this remarkable period, we not only retired our last remaining convertible debentures to eliminate long-term debt, but we also rocked the world of microcap companies during this past fiscal quarter by the virtually unprecedented action of paying a cash dividend to shareholders -- not just once, but twice within a period of six weeks." Pohl applauded the licensing team for having produced seven licensing agreements in the first six months of 2006. He noted that this remarkable level of success has produced advice from Patriot's attorneys and independent accountants that licenses are no longer extraordinary events for the company for which notice and information on Form 8-K must be filed with the SEC each time a license agreement is signed. Now that, in most instances, the requirements to file notices of license events with the SEC no longer apply, the result is that various contractual confidentiality clauses are now fully applicable and that exceptions to such agreements that were related to the SEC filing requirements are no longer available to the company.
"This means that the company finds itself in the difficult position of wanting to share the exciting details of license revenues at the time the licenses are announced, yet we are legally prevented from doing so," Pohl stated. "As a result, investors expecting to learn the dollar amounts of revenues received by Patriot Scientific in connection with recent and future licenses will find that such information will be available only as included in regular quarterly financial statements filed by Patriot with the SEC." The Patriot Scientific Board of Directors is considering additional strategic moves intended to enhance the strength and profitability of the company for the benefit of its shareholders, Pohl added. "As we accumulate capital resulting from licensing revenues, we are evaluating possible opportunities to diversify our revenue stream by engaging in joint ventures or acquiring other companies or technologies compatible with our business focus -- all depending, of course, upon future revenue and the board's determination of prudent, feasible action in light of available capital and market conditions at the time," he concluded.
About Patriot Scientific
Patriot Scientific is a leading intellectual property licensing company that develops, markets and enables innovative technologies to address the demands in fast-growing markets such as wireless devices, smart cards, home appliances and gateways, set-top boxes, entertainment technology, automotive telematics, biomedical devices and industrial controllers. Headquartered in Carlsbad, Calif., information about the company can be found at http://www.ptsc.com .
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
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Olympus Purchases Moore Microprocessor Patent(TM) Portfolio License Friday September 1, 4:05 pm ET Olympus Becomes Eighth Major System Manufacturer This Year to Purchase Rights to Use Fundamental MMP Portfolio Technologies
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Patriot Scientific Gaining Momentum as Olympus Signs Eighth Licensing Deal in Eight Months PR Newswire - September 05, 2006 08:56 Board Member Jim Turley Increases Strategic Role
CARLSBAD, Calif., Sept 05, 2006 /PRNewswire-FirstCall via COMTEX/ -- Patriot Scientific Corporation (OTC Bulletin Board: PTSC) confirmed today that Olympus Corporation has purchased a license to use the Moore Microprocessor Patent(TM) (MMP) Portfolio. Seven other major system manufacturers have purchased MMP licenses this year, including Casio, Fujitsu, HP, Seiko Epson, Sony, Nikon and Pentax. In addition, AMD and Intel are also licensees.
Olympus Corporation is a precision technology leader, designing and delivering innovative solutions in healthcare and consumer electronics worldwide. Olympus works collaboratively with its customers to leverage R&D investment in precision technology and manufacturing processes across diverse business lines. These include: gastrointestinal endoscopes, accessories and minimally invasive surgical products; advanced clinical and research microscopes; lab automation systems, chemistry-immuno and blood analyzers and reagents; and digital and film cameras, plus digital voice recorders.
Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense, a TPL Group enterprise, exclusively manages. The MMP Portfolio patents, filed in the 1980s, cover techniques that have become essential to consumer and commercial digital systems ranging from DVD players, cell phones and portable music players, to communications infrastructure, medical equipment and automobiles.
"The addition of Olympus marks our eighth MMP licensing agreement this year," said David Pohl, Patriot Scientific chairman and CEO. "With five license agreements signed in the past three months, our MMP licensing program continues to gain considerable momentum, and we have only scratched the surface of the opportunities available with hundreds of licensing candidates."
Patriot Scientific also announced today that board of directors member Jim Turley will be devoting increased attention to technology matters for the company. Turley, formerly editor-in-chief of Embedded Systems Design and currently the editor of Silicon Insider, is the author of seven books and has been editor of the prestigious industry journal Microprocessor Report, where he was three-time winner of the Computer Press Award. He is a frequent speaker at industry events and is often quoted in The Wall Street Journal, The New York Times and the San Jose Mercury News.
A former senior executive at ARC International, where he was responsible for three high-tech acquisitions and a successful IPO, Turley currently serves on several technical advisory boards for high-tech companies in the United States and Europe as well as on the advisory board for the Embedded Systems Conference and The Microprocessor Report. His areas of technology expertise include microprocessor chips, intellectual property, silicon/semiconductor technology, consumer electronics, automotive electronics, video games and consoles, and home/household electronics.
"Jim's increased availability to provide input and assistance based upon his industry experience and expertise will be extremely helpful as we consider additional strategic moves intended to enhance the strength and profitability of our company," Pohl stated.
As Patriot Scientific accumulates capital resulting from licensing revenues, the company is ready to implement the next phase of its strategic plan and is now evaluating possible opportunities to diversify its revenue stream by entering into joint ventures or by acquiring other companies and technologies.
About Patriot Scientific
Patriot Scientific is a leading intellectual property licensing company that develops, markets and enables innovative technologies to address the demands in fast-growing markets such as wireless devices, smart cards, home appliances and gateways, set-top boxes, entertainment technology, automotive telematics, biomedical devices and industrial controllers. Headquartered in Carlsbad, Calif., information about the company can be found at http://www.ptsc.com.
The patent portfolio, marketed as the Moore Microprocessor Patent Portfolio, contains intellectual property that is jointly owned by the publicly held Patriot Scientific Corporation and the privately held TPL Group. The portfolio encompasses seven U.S. patents as well as their European and Japanese counterparts. Both TPL and Patriot assert that their jointly owned patents protect techniques used in designing microprocessors, microcontrollers, Digital Signal Processors (DSPs), embedded processors and System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively managed by Alliacense, a TPL Group Enterprise.
About Alliacense
Alliacense is a TPL Group Enterprise executing best-in-class design and implementation of intellectual property licensing programs. As a cadre of IP licensing strategists, technology experts and experienced business development/management executives, Alliacense focuses on expanding the awareness and value of TPL's intellectual property portfolios. For more information, visit http://www.alliacense.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings.
Moore Microprocessor Patent, MMP and Alliacense are trademarks of Technology Properties Limited (TPL). All other trademarks belong to their respective owners.
CONTACTS: Patriot Media Relations The Hoffman Agency David Friedman (303) 868-9641 dfriedman*hoffman.com
Patriot Investor Relations Hawk Associates Frank Hawkins or Ken AuYeung (305) 451-1888 info*hawkassociates.com
Alliacense Media Relations TPL Group Tom Rigoli (650) 969-5986 rigoli*mindpik.com
SOURCE Patriot Scientific Corporation
Patriot Media Relations, David Friedman of The Hoffman Agency, +1-303-868-9641, or dfriedman*hoffman.com; or Patriot Investor Relations, Frank Hawkins or Ken AuYeung of Hawk Associates, +1-305-451-1888, or info*hawkassociates.com; or Alliacense Media Relations, Tom Rigoli of TPL Group, +1-650-969-5986, or rigoli*mindpik.com
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-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!? Posts: 7800 | From: Virginia | Registered: May 2006
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when is PTSC going to post their financial report??? they still havent published the revenue from the last several signings. assuming it is significant, and that they possibly put out another dividend, the PPS could go up substancially
Posts: 35 | Registered: May 2006
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Uh oh another potential 30 day wait till financials...
PATRIOT SCIENTIFIC CORP: 8-K, Sub-Doc 1
ITEM 4.02 NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW.
On September 8, 2006, the Company reached a determination that the prior accounting treatment of (i) our previously outstanding non-conventional convertible notes which allowed note holders to convert the notes payable into shares of our common stock at prices that were variable and potentially based upon several factors including the market price of our common stock at the time of conversion, and (ii) our accounting treatment of our interest in Phoenix Digital Solutions, LLC should be reassessed. The Company has also determined that the adjustments required as a result of our reassessments are material to certain of our previously issued financial statements and, therefore, will require us to restate our financial statements for the year ended May 31, 2005, and restate our quarterly reports for the quarters ended August 31, 2005, November 30, 2005 and February 28, 2006.
The Company's consolidation of the financial results of Phoenix Digital Solutions, LLC was based on advice from the Company's prior auditors. Following discussions with the Company's current auditors, the Company has reassessed its accounting for its interest in Phoenix Digital Solutions, LLC and, after further consideration of FIN 46R, has determined that, rather than consolidating the financial results of Phoenix Digital Solutions, LLC, it should have accounted for its interest in Phoenix Digital Solutions in accordance with the equity method of accounting for investments. The change in accounting was the result of the Company concluding that it did not have a controlling financial interest in Phoenix Digital Solutions, LLC and was not the primary beneficiary of the relationship.
Based on recent SEC guidance, the Company re-evaluated its accounting for its previously outstanding convertible debentures to determine whether the embedded conversion options required bifurcation and fair value accounting in accordance with FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities," and EITF 00-19, "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in a Company's Own Stock." The Company concluded that bifurcation of the embedded derivative from the host instrument was required and that the embedded derivative should be accounted for as a derivative at fair value with changes in fair value recorded in earnings. Therefore, a restatement of the Company's above-referenced financial statements was required. The Company's prior auditors required that the fair value of the embedded derivatives be determined by an independent study, which was commissioned by the Company and provided to the prior auditors at various stages of completion with the final completion on September 11, 2006. On September 12, 2006, the Company's prior auditors informed the Company that a different methodology than that applied in the independent study should be used to value the embedded derivatives. The Company has arranged for a second valuation based on the methodology now required by its prior auditors. The Company expects that its financial statements will be restated, and its Report on Form 10-KSB for the year ended May 31, 2006 will be filed, shortly after the second independent valuation of its embedded derivatives is completed.
The Company also considered the guidance issued by the SEC's Division of Corporation Finance with respect to the variable nature of the conversion price of its convertible debentures, noting that there is no explicit limit on the number of shares that are to be delivered upon exercise of the conversion feature, and EITF No. 00-19 which states that "if the number of shares that could be required to be delivered to net-share settle the contract is indeterminate, a company will be unable to conclude that it has sufficient available authorized and unissued shares, and therefore, net-share settlement is not within the control of the Company." Because this condition under EITF No. 00-19 was not met, the Company determined that it was precluded from classifying the embedded derivative instrument as equity. Accordingly, the feature should have been accounted for as a derivative liability at fair value, with changes in fair value recorded in earnings. The Company has determined that it should have classified all of its non-employee warrants as a liability as it is presumed under EITF No. 00-19 that the Company will not have a sufficient number of authorized shares to settle its other commitments that may require the issuance of stock during the period the derivative contract could remain outstanding. The Company did not previously apply the aforementioned guidance in accounting for the variable nature of the conversion price and therefore, a restatement of the Company's financial statements is required.
The decision by the Company to account for its interest in Phoenix Digital Solutions, LLC in accordance with the equity method of accounting for investments and its decision to bifurcate the embedded derivatives in its previously outstanding convertible debentures will not have a material effect on the Company's financial condition.
These determinations with regard to our previously issued financial statements were made by us on September 8, 2006. Our authorized officers and the Audit Committee of our Board of Directors have discussed with our independent registered public accounting firm the matters disclosed in this report. Due to all the circumstances discussed above in this document, the Company will be working diligently with our professional advisors to file our Report on Form 10-KSB within the next thirty days.
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Letter from David Pohl, Chairman and CEO of Patriot Corporation
September 20, 2006
Dear Shareholders,
In the last shareholder letter, I used the phrase "dramatic transition" to describe this exciting time in the history of Patriot Corporation ("Patriot") that began in mid-June 2005 when we shifted our primary business focus from developing and marketing chips to licensing other companies to use our valuable intellectual property. In the spring of 2006, we pointed with pride to the fact that during January and February of this year, three major electronics systems manufacturers - HP, Fujitsu and Casio - had signed license agreements for rights to utilize our valuable technology covered by patents in the portfolio jointly owned by Patriot and the TPL Group. License agreements had previously been signed with AMD and Intel Corp.
Patriot's Board of Directors startled the world of microcap companies last spring by having the Company declare and pay two cash dividends within approximately six weeks. Some shareholders questioned why we chose to pay two dividends during that time period as opposed to doing other things with that money. The Board of Directors carefully considered a number of different options, including discussions with our SEC attorneys about a possible stock buyback program, and finally concluded that the dividend payout was the most prudent thing to do at that time. We were delighted in finally having sufficient cash resources to give something back to our shareholders as dividends.
The continuation of our dramatic transition to our current focus on our patent portfolio licensing program was validated by the good news that five more well-known electronics companies signed license agreements during the period of June through September 1, 2006 - Sony, Nikon, Seiko-Epson, Pentax and Olympus.
Today we enthusiastically announced that Kenwood Corporation has become the ninth major manufacturer to purchase a license in as many months. Kenwood is a major manufacturer simultaneously doing business in automotive electronics, communications equipment, and home electronics. As I write this, negotiations with other potential licensees are underway. More than 300 companies have been contacted regarding licensing opportunities, and the list of possible candidates is well beyond that number.
We remain very confident that the patent portfolio licensing program is in extremely good hands with the very active Alliacense licensing team, who continually demonstrate their professionalism and tireless commitment to the success of this program.
License Information
The licensing successes to date triggered the need to comply with various confidentiality agreements that now apply to Patriot. This prevents us from announcing the dollar amounts of revenues related to individual license agreements except to report revenues in our quarterly financial statements filed with the SEC. As a general rule, our portfolio license fees - whether or not discounted as a result of negotiation strategy - are related to the relevant revenues generated for a licensee by products associated with the licensed technology, rather than the overall size and revenue of the company purchasing a license.
We are very aware that our shareholders and the investment community have been waiting for news that will reveal the revenue realized by Patriot from the licenses that have been signed since June 1, 2006. We expect to release this information in October, 2006. Financial results for the fiscal year ending May 31, 2006 will be reported on the Form 10-KSB, which is expected to be filed by October 13, 2006. Financial results for the first quarter of the new fiscal year, covering the period from June 1 through August 31, 2006, will be reported on our Form 10-Q, which is due to be filed by October 15, 2006.
Annual Financial Report Temporarily Delayed
The recently announced temporary delay in filing the 2006 Form 10-KSB in a timely manner is extremely frustrating for the directors and officers of the Company. We take responsibility for the delay. The explanation includes many weeks of concentrated effort and attention by our financial team in dealing with complex accounting issues that included ongoing consultations with our professional advisors.
The initial notice of the possible need to restate our financials was raised by our current auditors while the annual audit and preparation of the 2006 Form 10-KSB was in progress. During a careful review of that matter, we learned that the Company's prior auditors required certain calculations involved in considering a restatement of the Company's financials-for periods with which the prior auditors had been involved-to be determined by an independent study. A study was commissioned by the Company and the methodology and progress was provided to the prior auditors at various stages through the final completion on September 11, 2006. The next day, which was the day before the deadline for timely filing of the Form 10-KSB, the Company's prior auditors informed the Company of their decision that a different methodology than that which was applied in the independent study should be used. They informed us that without our using this new methodology, they would not be prepared to issue their opinion. The methodology was one that would have taken two weeks to complete. The result was that the Company was unable to file the Form 10-KSB on time.
Patriot filed documents with the SEC on September 13 and 15, 2006, summarizing reasons for the delay in filing the Annual Report on Form 10-KSB. On September 13, 2006, the Company filed a Form 8-K, in which Patriot reported that it will restate its financial statements for the year ended May 31, 2005, and the related quarterly reports for the quarters ended August 31, 2005, November 30, 2005 and February 28, 2006. The issue pertaining to the embedded derivatives as described in that 8-K also relates to the previous fiscal years ended May 31, 2004, May 31, 2003 and May 31, 2002. Please refer to a copy of that public document for a more technical explanation. Two days later, on September 15, 2006, after further deliberation, the Company filed a Form 8-KA announcing in part that we will rely solely upon our current principal independent auditors as we prepare for and file all these financial restatements - meaning without further participation from our former auditors.
A non-technical description of the situation is that, after extensive consultation with our professional advisors during the period leading up to September 8, 2006, it was determined that we should reassess the prior accounting treatment of (1) our interest in Phoenix Digital Solutions, LLC and (2) our previously outstanding non-conventional convertible notes - the last of which were paid off in March 2006 - which allowed note holders to convert the notes payable into shares of our common stock at prices that were variable and potentially based upon several factors, including the market price of our common stock at the time of conversion. The result is that we must restate our financial statements.
As part of the positive transition Patriot has experienced during the past year, we have had to address and resolve a number of matters left over from the past. We anticipate that the restatement of our prior year financial statements will be a significant step toward finally concluding such cleanup matters.
No Material Effect on Financial Condition of the Company
As stated in our recent filings with the SEC, there will be no material effect on the Company's financial condition by either (1) the decision by the Company to account for its interest in Phoenix Digital Solutions, LLC in accordance with the equity method of accounting for investments (with the result that the financials of the LLC will no longer be consolidated with those of Patriot for reporting purposes) or (2) our decision to bifurcate the embedded derivatives in Patriot's previously outstanding convertible notes in accordance with applicable SEC guidance and accounting standards. As soon as we complete the filing of the Form 10-KSB on or before October 13, 2006, the "E" designation next to our trading symbol will be removed.
Annual Meeting
The fact that the information from our Form 10-KSB will not be available until mid-October will prevent us from being able to prepare and mail proxy statements in time for holding a shareholders meeting in October as previously indicated. We are now looking forward to holding the annual shareholder meeting early in 2007. Shortly after the filing of our 2006 Form 10-KSB, the Board of Directors will set the meeting date and we will be preparing and mailing out the proxy statements for that meeting.
Analyst and Media Promotional Activities
During the past few months, we have stepped up efforts to increase public and industry awareness and coverage of Patriot:
* Board member Jim Turley and I have separately been involved in various interviews with reporters and analysts, some intended for publication and some for background information about Patriot to lay the foundation for future coverage. Arrangements for other panel and Web appearances are underway. * Patriot has recently engaged the firm of JM Dutton & Co. to prepare a report and analysis, which is expected to be completed and published near the end of October. * In addition to the ongoing services of The Hoffman Agency for public relations and Hawk Associates for investor relations, we have recently retained the services of Shareholder Development Group, a firm that will provide continuing information about Patriot via e-mail to a list of over 750,000 subscribers.
Continued Confidence
The officers and directors continue to have great confidence in the strength of Patriot and its business strategy. As we accumulate cash from licensing revenues, we are evaluating prudent allocation of this valuable resource with the goal of increasing shareholder value.
Earlier this year, we announced a program in which the Patriot may purchase shares of its stock on the open market from time to time. We have been implementing that program in the past few months, and we will continue to do so at times when we deem it appropriate and prudent.
Consistent with our business plan, we are also evaluating potential acquisition opportunities that would provide value and an additional revenue stream. The mention of these alternative uses of cash does not preclude us from declaring future cash dividends to shareholders. Lastly, we continue to work toward the goal of getting Patriot listed and traded on a national exchange such as the NASDAQ, AMEX or NYSE.
We appreciate your continued loyalty and patience.
Sincerely,
David H. Pohl Chairman and CEO
Posts: 45 | Registered: Oct 2005
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Alliacense Expands Executive Staff to Manage Global Licensing of Technology Patent Portfolios
CUPERTINO, Calif.--(BUSINESS WIRE)--Alliacense today announced the further expansion of its executive staff to manage both current and emerging patent portfolios owned by The TPL Group. Bruce Sanderson, the newest addition to the Alliacense team, has been appointed VP, Licensing. Sanderson follows the appointment of Rich Schuette who was appointed VP, Intellectual Property in April. Collectively, both VPs add more than 40 years of collective experience in global patent licensing.
“With more and more system manufacturers expressing interest in the Moore Microprocessor Patent™ (MMP) Portfolio, our licensing activity is growing rapidly,” said Mac Leckrone, Alliacense president. “Adding high-caliber executives such as Rick and Bruce is critical to our continued success in commercializing and licensing the MMP Portfolio as well as other IP assets being developed by The TPL Group.” Leckrone noted that the MMP Portfolio patents, filed by The TPL Group in the 1980s, are fundamental to consumer and commercial digital systems ranging from DVD players, cell phones and portable music players to computers, communications infrastructure, medical equipment and automotive electronics.
About Bruce Sanderson
Sanderson formerly served as Sr. VP of Licensing for IPVALUE Management, a private equity firm funded by Goldman Sachs, General Atlantic Partners and Boston Consulting Group. During his four-year tenure, he led efforts to close over 20 deals generating more than $100 million revenue. During his four-year tenure at Lucent Technologies, most recently serving as subsidiary president of the Licensing Division, he generated several hundred million dollars in revenue from the technology assets of Bell Labs including a portfolio of 26,000 patents. Over the course of his 13-year tenure with AT&T, he led a corporate-wide multifunctional team to establish a holding company subsidiary and the transfer of IP assets valued at $30 billion, which resulted in $25 million tax savings annually. While at AT&T, he evaluated 40 technologies and implemented licensing programs resulting in tens of millions of dollars in royalties. Sanderson holds an MBA from the University of Miami and a BA in Psychology from Tulane University.
About Rick Schuette
Schuette previously worked for Hewlett-Packard in Fort Collins, Colorado where for the last seven years of his 18-year tenure he served as Senior Counsel. His most current responsibilities at HP included house counsel for numerous microprocessor based litigations, the drafting and negotiation of joint development and licensing agreements for the company’s PA-RISC and IPF microprocessor and chipset development labs, as well as providing IP support for the Open Source and Linux Operation, the Software Global Business Unit (Open View) and America’s Marketing Organization. Before joining HP in 1988, he served as a regional attorney over a three-year tenure with Digital Equipment Corporation where he provided IP support for computer and peripherals products. Schuette holds an MA in Financial Management from Catholic University and a Juris Doctorate degree from the College of William and Mary. He earned his BSEE from Catholic University of America where he was also a member of Tau Beta Pi, the National Engineering Honor Society.
About Alliacense
Alliacense is a TPL Group Enterprise executing best-in-class design and implementation of intellectual property licensing programs. As a cadre of IP licensing strategists, technology experts, and experienced business development /management executives, Alliacense focuses on expanding the awareness and value of TPL’s intellectual property portfolios. For more information, visit www.alliacense.com.
Alliacense and Moore Microprocessor Patent (MMP) are trademarks of Technology Properties Limited (TPL). All other trademarks belong to their respective owners.
Posts: 45 | Registered: Oct 2005
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TWST: Would you give us a brief historical sketch of the company and a picture of the things you are doing at the present time?
Mr. Pohl: Patriot Scientific Corporation is a publicly held company. It is a Delaware corporation that has been public since 1992. At the present time, we estimate that we probably have about 16,000 or more shareholders. We are an intellectual property licensing company that develops, markets and enables innovative technologies for applications. Since the company’s founding in 1987, Patriot applied for and was granted several patents on its own inventions. The company’s portfolio of IP encompasses fundamental microprocessor design technology that is included in the company’s microprocessor chip. This valuable portfolio of intellectual property essentially covers the fundamental design of what we believe to be virtually every microprocessor in use around the globe today.
TWST: Would you go into some detail there?
Mr. Pohl: Patriot is a unique IP-licensing hybrid. The company has historically developed its own technology but recently agreed to unify its joint rights to a previously acquired patent portfolio as well. Patriot Scientific has been developing its own technology since its inception, including ground-penetrating radar intended for the military and industrial applications, microprocessor chips for consumer electronics, and other high-tech products. In June 2005, Patriot Scientific and The TPL Group, the other holder of equal rights to a portfolio of key microprocessor patents originally filed in 1989 and granted in 1998, announced an agreement to unify their respective interests in a joint venture. This valuable 10-patent portfolio contains core building blocks for microprocessor implementation and architecture currently used in many applications.
TWST: What are their principal applications?
Mr. Pohl: The principal applications are in cell phones and wireless devices, smart cards, home appliances, digital cameras, gateways, and virtually everything that touches the lives of consumers today, such as their new luxury automobile, the set-top box on their television set, the DVD player, microwaves and dishwashers — almost any consumer electronic device. Many medical devices have microprocessors, and there are various industrial applications as well. Aviation and aerospace technology also includes microprocessors.
TWST: What are some of the companies that you have been doing business with?
Mr. Pohl: Up until 2005, the company had been developing and marketing its own computer chip. Then in June of that year, the company entered into a joint venture to refine and refocus its business strategy with a group that had equal rights to the portfolio. We unified the patent portfolio, and as a result of that unification, we are now focused on licensing our technology to other companies as opposed to our actually manufacturing and selling our own chips. We came to realize that because our patent portfolio covers the fundamental design of virtually every microprocessor that is in use around the globe, hundreds of companies can license this technology. So to answer your question, AMD and Intel were the first to acquire licenses for the portfolio. Then, in calendar year 2006, we have had nine license deals signed so far, including HP, Fujitsu, Casio, Sony, PENTAX, Seiko Epson, Nikon, Olympus, and Kenwood. We are quite proud of the quality of the licensees so far, which is certainly an indication of the strength and validity of our patent portfolio.
TWST: Have you sued some companies for patent infringement?
Mr. Pohl: Yes, Patriot had originally sued some companies for patent infringement. The focus has shifted to Texas where infringement litigation initiated by the TPL Group on behalf of the jointly owned patent portfolio is now pending. Due to the sensitivity of that significant litigation, I would prefer not to discuss the topic further at this time without our attorneys present.
TWST: What makes your technology superior to that of your competition?
Mr. Pohl: The fundamental focus of our technology is that it is a microprocessor design with high speed, low power consumption, and a relatively low cost.
TWST: What would you be looking for in an acquisition?
Mr. Pohl: In an acquisition, we are looking for, first of all, a revenue stream that will be compatible with the company’s income and growth objectives, and with technology that would be compatible with our current focus. Certainly, it should be something that makes sense overall in terms of not diluting the resources that we will be accumulating as we go forward.
TWST: You are not doing much R&D at the present time?
Mr. Pohl: That is correct. We still have some valuable technology that, among other things, includes a computer chip that is identified as the IGNITE chip. That is the chip that the company spent a number of years researching and developing. We are considering whether we should go forward in some sort of a joint venture and perhaps find another company that would be interested in putting some of their own resources into further R&D and perhaps even marketing once some enhancements are made to the chip. But at the present time, the company itself is not engaging in any R&D.
TWST: What about challenges and problems? What are you worrying about these days?
Mr. Pohl: One of the challenges we are dealing with is the fact that lately the media have been picking up on and casting companies that are primarily engaged in licensing of patent portfolios in a pretty negative light. We really don’t fall into this category that tends to be described as patent trolls, which essentially are companies that,according to what I read in the newspapers, acquire patents to make a quick buck, and strictly for the opportunity to go out and prosecute infringers and collect money from them. Our focus is that we acquired our original technology for the purposes of developing a product. We spent a number of years and millions of dollars in research and development and marketing of that product, so we really don’t fit into that quick buck category, even though at the present time, we have stopped doing our R&D and we have decided to focus on the licensing.
TWST: What would you reasonably expect the company to look like in about three years? What might be some milestones along the way for potential investors to note?
Mr. Pohl: To date, over 300 companies have been put on notice for the fact that they are possibly infringing. That should give investors some sense of the size of the potential pipeline of licensing candidates that is out there, and we currently can point with pride to 10 licenses in total. That means there are a lot more to come. So the answer to your question is that three years from now, I picture this company as being one that has capitalized on the opportunity to accumulate some impressive amounts of cash in the form of licensing revenues. Milestones would possibly include that the Board of Directors might decide to pay some dividends to shareholders along the way. In addition to that, the company will definitely have taken a look at adding additional revenue streams through acquisition opportunities and perhaps the opportunity to acquire additional technology. So I would see this company three years from now, barring any unforeseen developments, as being a financially strong company, listed on a major stock exchange, and one with income and growth potential as a very attractive investment for shareholders.
TWST: How much cash do you have now and how rapidly are you burning it?
Mr. Pohl: At the present time, we are just about to the point of filing a 10-KSB, which is due around October 13, and our first quarter 10-Q is to be filed a few days after that.. I don’t think it would be useful for me to speak of stale information as of our last quarterly filing as of the end of February. You know the restrictions that we face in being a publicly held company. Our current cash position will soon be revealed in our public filings.
TWST: The company has five people at the present time. Would you tell us about the backgrounds and expertise of several of those five people, yourself included?
Mr. Pohl: I am an experienced business lawyer and have been on the Board of Directors of Patriot Scientific since 2001. In addition to myself, we are pleased to have other Board members who contribute almost on a daily basis to the progress and growth of the company. One of our Directors is an experienced CPA, Gloria Felcyn, who serves as the Chairman of our Audit Committee. Another Director is an attorney, Carlton Johnson, who is quite experienced in legal matters. He helps us tremendously in that arena. We have, in the past year, added James Turley to our Board. Jim is a recognized industry authority on microprocessors and intellectual property, and so he is providing very valuable input in that regard. And then we also have Dr. Helmut Falk, who is an anesthesiologist, and who contributes concerned business and shareholder input as the son of the Founder of the company. That is our Board of Directors. In addition to myself as the Chairman and CEO, our CFO is Tom Sweeney. Tom is a CPA with a background in dealing with companies that are of an entrepreneurial nature and publicly held companies that have experienced rapid growth in the past. In addition to Tom and myself being here in the office as executives on a daily basis, we have a very good controller and two other assistants.
TWST: Do you expect to add some people as the company becomes more successful?
Mr. Pohl: Absolutely, we look forward to that. At the same time, we favor operating on a lean and mean basis, and that is the way that we are able to function very effectively. My objective has always been to minimize investments of the company in bricks and mortar and to focus more on the revenue, particularly recurring revenue.
TWST: What occupies your own attention most on a day-by-day basis?
Mr. Pohl: Certainly, attention to closely following the activities of the licensing strategy that we are pursuing in addition to a myriad of managerial activities associated with being the CEO of a small team running a public company with a large number of shareholders. Being a publicly held company, one of the things that I find very interesting these days are the challenges that go with operating a company in the era of Internet message boards. When you have a small company, a small staff such as ours, and a very large widespread shareholder group (as I indicated earlier, it’s probably around 16,000 in number), there are lots of ongoing promotional and investor relations duties that fall on the CEO’s desk in a situation of this sort, in addition to the daily tasks related to running a business.
TWST: What would be the two or three best reasons for a long-term investor to take a very good look at Patriot Scientific?
Mr. Pohl: First of all, the value and strength of the patent portfolio. If one considers simply the fact that we’ve put over 300 companies on notice so far, you can speculate that there are probably several hundred more companies that might be added to the list in the future. So the potential for licensing revenues is tremendous. One could do some calculations on their own as far as picking a hypothetical average revenue stream per individual license and then multiplying that by the number of licenses they expect to see the company have. In doing so, one can come up with some interesting numbers of projected future revenue. As we accumulate that revenue, investors can look at two things. Number one is that since we are a company that has a stock that is currently trading at a price in the range of near $0.80 a share and a market cap of almost $300 million, we should have tremendous prospects for appreciation in the value of the shares. In addition to that, because of the activities that I have described in the revenue stream, the potential for dividends along with the appreciation are great.
TWST: Would you give us some hypothesis about this potential revenue stream?
Mr. Pohl: At this point, it is a subject I would love to be able to talk about, but we are not in a position right now to be able to give much guidance. As I said, the best way to do it is to take the number of potential licensing candidates that are out there, and multiply that number by a projected average dollar amount per license. You come up with some pretty impressive prospects for what the projected revenue of this company can be on a one-year or a five-year basis. Our patents are good through the year 2015. So there is a tremendous future ahead for this company.
TWST: You said that you would shortly have more freedom regarding what you could say.
Mr. Pohl: That is because we will be filing our 10-K information, which will be for our fiscal year end that was May 31, 2006. Then shortly after that, we will be announcing our first quarter information. And in the first quarter of this year, five additional licenses were signed.
TWST: Are you going to take any steps to improve your capital structure?
Mr. Pohl: We have already taken some significant steps in that, when this company was struggling to keep the doors open a number of years ago, we had contracted for a line of credit — an equity line of credit financing that later shifted into convertible debentures. In March of this year, we paid off the last of the convertible debentures, which had the result of the company basically eliminating its long-term debt. So as far as strength is concerned, I would certainly point to that. In addition to the strong revenue stream that we have from licensing, we have a very small headcount and low overhead. We are really at a point where the capital structure is very favorable.
TWST: Is there anything that you would like to add, particularly regarding strategies, opportunities and long-term objectives?
Mr. Pohl: One of the things that we find that we are in a position to do is to offer a possible acquisition opportunity to some privately held companies that may be out there perhaps with good technology but in need of cash or working capital as in the position that Patriot used to be, or perhaps with owners seeking liquidity or an exit strategy. These are companies that might benefit from being associated with a publicly held company such as Patriot that has a good cash flow, and can present opportunities for a privately held company to back into a public company. We feel that that is one of the exciting prospects that we have, which is a strategy, an opportunity, and an objective.
TWST: What would you feel about your company being acquired by a much larger company?
Mr. Pohl: At the moment, we are not entertaining that thought. We feel that we have so much potential that we are not putting ourselves on the market.
TWST: Is there anything that you would like to add?
Mr. Pohl: I am very positive in terms of the fact that we are a company that has gone through a dramatic, positive transition in the past year. We went from being an R&D and marketing company, making and marketing a chip, to a company that has now shifted to licensing a patent portfolio that has already proven its worth with the initial group of marquee-name industry companies that have purchased licenses. We have demonstrated that we have a very strong income and growth potential in terms of the pipeline of additional candidates for licenses that is already out there. We also have a really hands-on Board of Directors and management team that function as a tight-knit group to make quick decisions and to work in the best interests of the shareholders. I feel that Patriot Scientific should be on every investor’s radar screen.
posted
They are going to announce their financials (10-KSB) by next week. Stock has been started creeping up slowly and now It is closed to $1 range.
Posts: 45 | Registered: Oct 2005
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posted
everyone is accumulating, they are probably going to announce a dividend on Oct 13, it will scream up just like the last time they did that
Posts: 35 | Registered: May 2006
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posted
10-K for the fiscal year ending May 31 is to be filed any time prior to October 13. Then we lose the "E".
Then according to Pohl:
quote:Then shortly after that, we will be announcing our first quarter information. And in the first quarter of this year, five additional licenses were signed
Looking good.
Jo
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
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posted
Did you guys notice that he talked about recurring revenue in his last interview
quote: My objective has always been to minimize investments of the company in bricks and mortar and to focus more on the revenue, particularly recurring revenue.
Patriot Scientific Files Form 10-KSB for Fiscal Year 2006 Friday October 13, 5:31 pm ET
CARLSBAD, Calif., Oct. 13 /PRNewswire-FirstCall/ -- Patriot Scientific Corporation (OTC Bulletin Board: PTSC - News) today filed its 10-KSB annual report for its fiscal year ending May 31, 2006. The report, filed with the U.S. Securities and Exchange Commission, includes audited financial statements for its fiscal year and related disclosures concerning the company's results of operations and financial condition during that period. The company also announced that its new web site will be launched on Monday at www.ptsc.com, where a copy of the company's 10-KSB will be available.
Patriot Scientific's consolidated financial statements reflect net income of $28,672,688 for the fiscal year ending May 31, 2006, with revenue of $35,895,449 million as its share of distributions from licensing agreements related to the MMP Patent Portfolio. The report also disclosed that during the period from June 1, 2006 through October 3, 2006, Phoenix Digital Solutions, which is jointly owned by Patriot Scientific and the TPL Group, entered into MMP portfolio license agreements with third parties, pursuant to which Phoenix Digital received aggregate proceeds totaling $32,699,000. The dollar amount for each licensing deal varies. Each is dependent on the relevance of the patents to each licensee's revenue and the extent to which the patented technology is incorporated into specific products, rather than on the total revenue from all products of the licensee.
Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense(TM), a TPL Group enterprise, exclusively manages. The MMP Portfolio patents, filed in the 1980s, protect design techniques that have become essential to a myriad of consumer and commercial digital systems ranging from DVD players, cell phones and portable music players, to communications infrastructure, medical equipment and automobiles.
"Patriot Scientific has undergone tremendous positive change in the last year," said David Pohl, Patriot Scientific chairman and CEO. "The shift away from developing and marketing our own Ignite microprocessor to focus primarily on revenue from the licensing of our patent portfolio has bolstered the financial strength of the company. We are excited about the next phase of our plan that has already begun in which we are evaluating opportunities to diversify our revenue stream through possible joint ventures or acquisitions, all with the goal of increasing shareholder value."
Activities at Patriot Scientific that have occurred thus far in calendar year 2006, which includes the last six months of the fiscal year covered in the 10-KSB include:
- Nine MMP portfolio licenses have been sold in the first nine months of the year - Over 300 companies have been notified that they are licensing candidates - Unprecedented among microcap stocks, two cash dividends in 2006 - Announced open market buy-back program for shares - Conversion and retirement of all outstanding debentures
Due to activities related to preparation and filing of restated financials for fiscal 2002 through 2005 as previously announced, Patriot Scientific has filed a notice to take the allowable five-day extension to file the fiscal 2007 first quarter 10-Q financial report for the three month period ending August 30, 2006. That document will be filed October 23, 2006. Patriot Scientific has been advised that the character "E" that has been appended to the company's trading symbol pending the filing of the company's annual report will be removed today.
About Patriot Scientific
Patriot Scientific is a leading intellectual property licensing company that develops, markets and enables innovative technologies to address the demands in fast-growing markets such as wireless devices, smart cards, home appliances and gateways, set-top boxes, entertainment technology, automotive telematics, biomedical devices and industrial controllers. Headquartered in Carlsbad, Calif., information about the company can be found at http://www.ptsc.com.
The patent portfolio, marketed as the Moore Microprocessor Patent Portfolio, contains intellectual property that is jointly owned by the publicly held Patriot Scientific Corporation and the privately held TPL Group. The portfolio encompasses seven U.S. patents as well as their European and Japanese counterparts. Both TPL and Patriot assert that their jointly owned patents protect techniques used in designing microprocessors, microcontrollers, Digital Signal Processors (DSPs), embedded processors and System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively managed by Alliacense, a TPL Group Enterprise.
Moore Microprocessor Patent, MMP and Alliacense are trademarks of Technology Properties Limited (TPL). PTSC and Ignite are trademarks of Patriot Scientific Corporation. All other trademarks belong to their respective owners.
CONTACTS: Patriot Media Relations The Hoffman Agency David Friedman (303) 868-9641 dfriedman*hoffman.com
Patriot Investor Relations Hawk Associates Frank Hawkins or Ken AuYeung (305) 451-1888 info*hawkassociates.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings.
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