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They are recieving royalty payments from AMD on the inflame/ignite. Early licensee's have been given sweetheart deals that don't include recurring royalty payments. Each company does have to pay yearly maintanence fees of $100,000 dollars for a period of 4 years. You have to go back and read the AMD, Intel and HP 8K's.
These early settlements are just to get the ball rolling and establish some validity to patent infringement claims. Things will change as we progress.
Expect to see announcements of a signing or two prior to or at the Shareholders meeting. This 10Q was very positive.
I'm not worried about the Fish suit. I believe that stemmed from a time when PTSC had sole ownership of the patents, which Fish had sold to Nanotech who in turn sold them to PTSC. I believe this agreement was done in order to have Fish testify in a pending case VS TPL and Moore. It didn't happen and TPL(MOORE) and PTSC are now partners.
On another note, with the Shareholders Meeting just around the corner I think TPTB at PTSC will do something to insure the PPS is in good shape for the SHM.
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I rode this horse right into the grease again. I got out with third degree burns. I'll get back in at 70 cents tommorrow or Monday. They will probably announce another settlement in the middle of next week to stop the bleeding, but I don't see this thing staying north of $1 very long in the a.m. Good Luck
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Is there any reasonable possibility that this can rise above where it is now on Friday or is it headed south? I'm debating just cutting my losses and protecting what I have left. I'm sure it will do the exact opposite of what I decide.
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quote:Originally posted by black3: Is there any reasonable possibility that this can rise above where it is now on Friday or is it headed south? I'm debating just cutting my losses and protecting what I have left. I'm sure it will do the exact opposite of what I decide.
I wouldn't hold any longer than thirty minutes in the a.m. f there is no news and it is heading south. I would dump it and perhaps get back in late in the day or early next week. The problem with holding it thirty minutes after the market opens is, by then, it may very well be trading below 90 cents. But then again, I thought it would close in the mid 1.30's today after the earnings release. JMHO
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quote:Originally posted by black3: Is there any reasonable possibility that this can rise above where it is now on Friday or is it headed south? I'm debating just cutting my losses and protecting what I have left. I'm sure it will do the exact opposite of what I decide.
As with everything else. this depends upon your trading style. If you are day trading or usually hold for a day or 2 then you might sell. Just remember it's only a true loss when you sell. Until then it's a paper loss.
There are many people who have been holding this stock for the long term. They will be getting their .04 per share dividend on Monday/some Tuesday. Look for a lot of them to reinvest their divy money back into the stock. IMHO, we hover in this area .98 to $1.20 until we get more news. Monday and Tuesday will probably be in the $1.15 to 1.25 region with the reinvestment happening.
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Thanks for the input Wally and Boomer. I've only been trading stocks for a few months and am still finding my tolerance levels. I may sell off a portion and let the rest ride for a while and see what happens.
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Monday is the SHM, hopefully we will see some gains from good news. I agree with repo on the subject of reoccurring royalty payments. One time payments will only make this stock spike, then slowly decline. They need to get some reoccurring payments to hold onto our gains. If they keep this trend of one time payment agreements I'll start trading this stcok again, no point in holing long if PTSC can't hold the gains. JMHO. Time will tell
[ April 21, 2006, 11:05: Message edited by: just_25 ]
-------------------- Success is having the time and money to enjoy all of life's wonders...
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My guess is the 'one time' agreements do include royalty payments. PAST royalty payments, with a negotiated better deal for early comers, (i.e. less royalty percentage for past enfringements). I can't imagine PTSC, once receiving a payment for past enfringements would give up all future royalties forever regardless of the gross sales of a licensed company. I may be wrong but if this is what they're doing they need new patent attorneys.
-------------------- "Whether you think that you can, or that you can't, you are usually right." - Henry Ford
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I like your guess stockv. My only concern is that the 2 big players Intel and AMD have already signed. Their attorneys had better up the ante in these court cases.
-------------------- Success is having the time and money to enjoy all of life's wonders...
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Patriot Scientific Corporation Announces Share Repurchase Plan, Strong Q3 Revenues; Portion of Future Revenues Allocated for Stock Buyback
CARLSBAD, Calif.--(BUSINESS WIRE)--April 24, 2006--Patriot Scientific Corporation (OTC Bulletin Board: PTSC) today announced a plan under which it would utilize 10 percent or more of future licensing revenues to buy back corporate stock. The Company also announced significant earnings results for its third fiscal quarter, as contained in its Form 10Q filed last Thursday, and confirmed that the previously announced cash dividend of $.04 per share is being issued today.
"The stock buyback plan adopted by the Board of Directors calls for management to use not less than 10 percent of future licensing revenue distributions received by the Company to purchase shares of our stock on the open market in a manner consistent with applicable securities laws and regulations," said David H. Pohl, Chairman and CEO of Patriot Scientific. "These buybacks are, of course, subject to the Company determining at the time licensing revenue distributions are received that such action is prudent based upon market conditions and sound financial management considerations. Repurchased shares will be placed in our treasury as a resource available for possible future use," Pohl explained.
"This stock buyback program reflects our confidence in both the near- and long-term prospects for Patriot Scientific," Pohl stated. "We are committed to returning value to stockholders in various ways, including through our growth strategy as well as our focus on operational excellence and ability to generate and manage strong cash flow. As we receive and accumulate cash in the future from anticipated licensing revenues, our Board will be continuing to review and update our business and strategic plans," he continued. "These considerations currently include payment of dividends, buying back some of our outstanding shares and warrants, and contemplation of other prudent and feasible ways in which we might put future cash to work to create additional streams of revenue for the benefit of the Company and our shareholders."
In actions extremely rare for micro-cap corporations, Patriot will have issued two cash dividends within the past two months. The second of these two dividends is being distributed today to qualified shareholders and warrant holders of record as of March 31, 2006. Upon completion of this dividend payment, the total dividends paid by Patriot so far this calendar year will be almost $25 million. Earlier this year, Patriot also entered into a warrant buyback plan, and in February it exercised one of its monthly options to repurchase 2 million outstanding warrants from a warrant holder.
These cash dividends and buyback plans are especially significant because - until Q3 of 2005 - Patriot had never shown a quarterly profit, and had never realized significant revenue from its 10-patent portfolio of seminal microprocessor innovations. Since February of last year, the Company's jointly owned patent portfolio - marketed as the Moore Microprocessor Patent(TM) (MMP) Portfolio - has been successfully licensed to Intel, AMD, HP, Fujitsu and Casio, generating millions in revenue for Patriot.
The information just released by Patriot - as reported on its Form 10QSB filed with the SEC - includes among other things that in the three months ending February 28, 2006, Patriot Scientific booked some $60 million in revenue from license transactions. As explained in notes to the financial statements, that amount includes revenues of a joint venture licensing entity that are not available to the Company, but which - due to the need to comply with a complex rule of accounting standards - Patriot is required by its independent auditors to consolidate and include with its own figures. The same accounting rule and explanation applies to income figures included in the report.
The Company also completed the previously announced conversion and retirement of all remaining convertible debentures that had been on the books, freeing the Company from the liability as well as certain restrictions and contingencies that had been contained in those debt agreements.
"The very favorable quarterly revenue and income figures, even after allowing for the inclusion of figures for the consolidated joint venture entity, show Patriot Scientific Corporation to be a strong growth company in excellent financial health," Pohl said. "Although past performance does not guarantee future success, we are confident that Patriot will receive additional licensing distributions based on our core patent technologies that are at the heart of virtually every microprocessor produced since 1994. With the precedent of the licensing agreements already entered into with major computer chip and electronic equipment manufacturers, we have every reason to expect that other firms will choose to honor our patents by obtaining licenses."
"Our recent quarterly report also includes information about some litigation or disputes in which the Company is engaged that do not involve patent infringement," Pohl commented. "It should not be surprising for a company like Patriot that has undergone such a dramatic transition in the past year to be dealing with some conflicted matters from the past that need to be resolved. These matters are not distracting us from the normal course of business, and we rely upon the experienced and skillful attorneys who are advising and representing us to help bring these matters to a satisfactory conclusion."
Through the Company's marketing alliance with The TPL Group's Alliacense division, active license negotiations are ongoing with other U.S. and foreign companies whose digital products include fundamental design techniques covered by the Company's patent portfolio. More than 150 of these companies - and that includes practically every high-tech consumer electronics manufacturer and systems integrator in the global marketplace - have been put on notice of likely infringement and the opportunity to obtain licenses.
"Q3 of 2006 has proven remarkably successful for Patriot Scientific," Pohl said, "and our Board of Directors has seen fit to share this success directly with our shareholders through two unprecedented dividends. Now, in addition, our Board has adopted a strategic long-range stock buyback plan to demonstrate our belief in the future of Patriot and the long-term value of our stock."
About Patriot Scientific
Patriot Scientific (OTC Bulletin Board: PTSC.OB) has emerged as an effective and dynamic intellectual property licensing Company, developing and marketing innovative and proprietary semiconductor technologies. The Company's portfolio of proprietary designs encompasses what is believed to be fundamental ultra-low-power array microprocessor technology, as well as pending patents designed to protect Patriot's proprietary technology.
The patent portfolio, marketed as the Moore Microprocessor Patent(TM) Portfolio, contains intellectual property that is jointly owned by 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 Processor (DSPs), embedded processors and System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively managed by Alliacense, a TPL Group enterprise.
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.
Alliacense, Moore Microprocessor Patent, and MMP are trademarks of Technology Properties Limited (TPL). All other trademarks belong to their respective owners.
CONTACT: Patriot Media Relations Attention GroupDaryl Toor, 770-777-9489 dtoor*attentiongroup.com or Patriot Investor Relations Hawk Associates Frank Hawkins/Ken AuYeung, 305-451-1888 info*hawkassociates.com
SOURCE: Patriot Scientific Corporation
-------------------- Success is having the time and money to enjoy all of life's wonders...
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