quote:Originally posted by OILDOG: Should hit a buck. Has not been as strong in its moves lately,but still a good trader. Glass,didnt you bring this to the board in '05?
i don't recall if it was me that first posted it, but i did buy in at .08 in '05
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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I referring to legal shorts covering. The amount of the Dividend itself is not the only motivation to cover. Since you are basically betting that the PPS will drop you want to cover at the lowest point possible. The PPS is going up and on top of it there is the Dividend. Remember that we are only talking about legal shorts covering. This just adds to the upward momo.
Now if there are any Naked shorts on the stock, which I really have no knowledge of it just creates that much more pressure to cover.
The whole short issue is just an added bonus. IMO, the Dividend and annoucing of biyearly dividend shows strength by the company. Not only do they have the cash to pay this dividend but are fully convinced that they will continue to obtain cash through the licensing of the portfolio to afford future dividends. NEC was a huge signing. There was once 6 Japanese companies willing to go to court and fight the patent 4 have settled. If the final 2 settle, which I believe they will, who is going to fight it.
I think we will be seeing more signings in the near future just like happened after the first Dividend was issued. This is just a precursor of what is to come.
If Trade was being facetious? I apologize and take it back.
GLTA Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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Alliacense Appoints Roy J. Maharaj Vice President, Licensing
(that is 2 appointments recently, sounds like they are gearing up to accelerate going after many more companies)
Last update: 2/23/2007 12:00:52 PMCUPERTINO, Calif., Feb 23, 2007 (BUSINESS WIRE) -- Alliacense today named Roy J. Maharaj Vice President, Licensing, reporting to Mike Davis, Senior Vice President, Licensing. With more than 15 years' experience managing business development, technology licensing and sales, Maharaj comes to Alliacense from Mistletoe Technologies where he served as VP of Business Development and Sales over the past two years. "Roy's cross-functional management experience within both large enterprise and startup environments has direct application to the expanding range of licensing programs that we are developing and directing for The TPL Group," said Davis. "We look forward to his contributions, especially as we continue winning notable licensees worldwide for the Moore Microprocessor Patent(TM) (MMP) Portfolio." MMP Portfolio patents encompass fundamental design techniques that enable higher performance and lower cost digital electronic systems ranging from cell phones and portable music players to communications infrastructure and medical equipment as well as automobiles, which today utilize dozens of microprocessors. Maharaj began accumulating extensive technology licensing experience with IBM Corporation where he served as Manager of Technology Licensing and Business Development from 1995 to 2000. He subsequently managed key business development and licensing programs for Cylink and Securalink, both later acquired by SafeNet Inc., where he then served as Vice President of Global Business Development and Sales from 2002-2005. At SafeNet, he was instrumental in completing IP licensing agreements with several major companies including AMD, Cisco, AMCC, Samsung and Texas Instruments, while tripling Silicon IP design wins and revenue year to year. Maharaj earned his Juris Doctor degree from the School of Law at Santa Clara University where he earlier received his Bachelor of Business Administration. He also holds an MBA from San Jose State University.
Alliacense is the arm of TPL(PTSC's partner) who goes after licensing of the MMP portfolio. Looks like they believe that they are going to get real busy very soon.
Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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Dear Shareholders and Friends of Patriot Scientific Corporation:
The following is a summary of significant activities and developments involving Patriot Scientific Corporation during calendar year 2006, including some recent events of interest.
Share Price. 677%! That's the dramatic increase in the price of Patriot Scientific shares in calendar year 2006, as highlighted in a recent article in the San Diego Business Journal singling out our stock price performance as the leader among San Diego companies in our market cap category. The closing price on January 3, 2006 was $0.09 per share, and on December 29, 2006 our stock closed at $0.61 per share. The market price for PTSC shares experienced some exciting ups and perplexing downs during the year, but overall it was an impressive increase. One of the principal goals of our business plan is to get our stock listed on a national exchange as soon as possible, although that remains dependent on our share price moving to a significantly higher plateau.
Patent Portfolio Licenses. Twelve new licenses were signed during the period from January through December, 2006. They were a result of the joint venture that Patriot Scientific entered into with The TPL Group in June, 2005 to commercialize the jointly owned patent portfolio. Licensees included leading electronics manufacturers with such well-known names as HP, Fujitsu, Casio, Sony, Seiko Epson, Nikon, Pentax, Olympus, Kenwood, Agilent, Lexmark, and Schneider Electric. By the end of the year, over 400 companies had been placed on written notice that they were likely infringers on one or more patents in the portfolio. Each of those companies is a candidate for licensing, and over 200 of them have already engaged in further communications with the licensing team.
So far in the month of February 2007, we have been pleased to announce that two more names have been added to the roster, as licenses have been purchased by NEC Corporation and by Funai Electric Co., Ltd.
Commercialization of the portfolio is being exclusively handled by The TPL Group through Alliacense, their licensing enterprise. Alliacense has continued to expand its activities on behalf of the patent portfolio during the past year while adding to its team of licensing professionals as well as technical and support personnel. The growing worldwide pipeline of licensing candidates that are in various stages of dialogues with the Alliacense team includes the names of many well-known global manufacturing companies and product brands.
All fees from new licensees are paid directly to Phoenix Digital Services (PDS), the joint venture entity owned 50% by Patriot Scientific Corporation and 50% by The TPL Group. PDS collected over $108 million in total license fees for licenses signed in 2006. After allocation for expenses, the distributive share received by Patriot Scientific from PDS was over $48 million. Although most of the companies that have signed license agreements so far have qualified for discounted license fees for being early movers in their market segments, Alliacense has stated that future licensees in segments where early tiers have been captured are subject to progressively higher royalty rates.
Dividends. In the spring of 2006, Patriot Scientific caught the attention of the investment community when our Board of Directors took dramatic action for a company of our size. The company paid two cash dividends within a period of approximately 6 weeks in a move to reward loyal shareholders. Prior to that time, it was practically unheard of for a microcap company to pay dividends. The board later announced that capital subsequently accumulated from license fee distributions might be put to one or more alternative uses based upon financial considerations. While leaving open the possibility of paying future dividends, the Board indicated the company would also consider alternatives that could include investing in acquisitions or joint ventures intended to create revenue that would be in addition to the revenue that flows from licensing.
On February 22, 2007 we were pleased to announce that the Board of Directors repeated its precedent-setting action of a year ago and declared a dividend of $.02 per share for qualifying shareholders and warrant holders as the March 6, 2007. The dividend is to be paid April 09, 2007.
Board Members. In February, 2006, Jim Turley became a member of the Patriot Scientific Board of Directors and was named chairman of the Technology Committee of the Board. Mr. Turley is a recognized analyst, writer and consultant on intellectual property and microprocessor technology. He was reelected to the Board at the annual meeting last April along with Dr. Helmut Falk, Gloria Felcyn, CPA, Attorney Carlton Johnson, Jr., and me. The Board is currently seeking to fill an available Board seat by adding someone having significant investment banking credentials.
Financial Statements. In September, 2006, we learned that we were among several hundred companies that needed to file restated financial information covering a period of several years. The reason related to increased emphasis by the SEC on compliance with guidance the agency had issued in years past, but which had received little attention from either the agency or many accountants and auditors. It required going back over the applicable years to calculate reallocations of debt and equity for each financial reporting period, based on re-pricing terms found in convertible debentures.
The result was that although the restatements did not result in any material changes to the financial position of our company, those circumstances beyond our control forced us to delay the filing of our annual report on Form 10-K. We had retired the last of our convertible debentures in March, 2006, but nevertheless, we had to comply with the applicable SEC accounting regulations and restated our financials for each of the fiscal years since 2002 that such debt instruments had existed.
Our books and records for fiscal years prior to 2006 had been audited by our previous independent accountants, but in the restatement process, our records for each of the fiscal years 2002 through 2006 were re-audited by our current independent accountants who were retained in November, 2005. We had 30 days to meet a deadline for filing the restated financials. It was a daunting, time-consuming task that was accomplished through concerted efforts involving many late nights and weekends by our dedicated Patriot Scientific team working in conjunction with our auditors.
First and Second Quarter Fiscal Year 2007 Results. Our financial results for the first two quarters of our fiscal year 2007, which ended November 30, 2006, were reported and filed with the SEC on Form 10-Q on the due date of January 16, 2007. A copy is available on our website at www.PTSC.com.
In another 2006 development, we retained J. M. Dutton Associates to produce a research report on Patriot Scientific. The report was issued early in November after having been delayed to wait for our restated financials. Although the analyst who wrote the report reached share price conclusions and projections that were more conservative than we had expected, publication of the report helped Patriot Scientific achieve wider attention in the investment world.
Annual Meeting. We had originally planned to hold an annual meeting of shareholders in early November, 2006. The meeting had to be postponed due to the wait necessary to produce our restated financials to be included in a proxy statement as well as necessary lead time for printing the proxy. That meant that arrangements for the time, as well as the location of the meeting, had to be revised, and part of the rescheduling challenge was due to limited availability of venues to handle the anticipated large attendance. Over 330 people attended our last annual meeting. The next Annual Meeting will now be held on April 27, 2007, with voting eligibility for shareholders of record as of March 13, 2007. The meeting will be held at the La Costa Resort and Spa in Carlsbad, California. Further details will be announced soon and proxy materials will be mailed to shareholders.
Shares Repurchased. In the months of July through November, 2006, management implemented a share repurchase plan as authorized and publicly announced by the Board of Directors and reported in our last quarterly filing. We continued to purchase shares during the months of December 2006 and January 2007. The Board and management believed that our stock was undervalued in the market and that it was a prudent use of corporate funds for the company to purchase more of its shares. As of this writing, we have purchased over 10 million shares of Patriot Scientific Corporation common stock in the open market. Future buybacks will depend upon market conditions and prudent asset and financial management considerations.
Acquisition and Joint Venture Activities. Beginning in October, 2006, we began and continued preliminary discussions toward possible acquisition of two different companies. We consulted a prominent investment banking firm when taking a preliminary look at a company that is on the verge of developing a revenue stream. The company on which we were focusing is beginning to market promising technology protected by an impressive patent portfolio in their market niche. We amicably ended discussions with the target company in late December.
The other company to which we were introduced at about the same time is Holocom Networks, Inc. (HNI), a privately-held company that was in financial difficulty. HNI had a revenue stream derived from production and sales of products and related services to the military for secured communications needs. These primarily involved a patented pathway system (Secure Communications Raceway) for enclosing cables used to transmit sensitive data and communications. In addition, HNI had a 60% interest in a limited liability company that has been developing and testing a multi-domain computer hardware unit intended to answer another need in the field of secured data and communications.
We extended a loan to HNI to provide them with funds to primarily meet payroll and limited expenses while we conducted due diligence on the company and its business. Our loan was secured by a first lien on all of HNI’s assets, including patents and licenses, except for certain factored accounts receivable. HNI later defaulted on its loan payments. The company’s debts included amounts owed to Patriot and another very large creditor, among others. After careful evaluation, as a protective measure, we foreclosed on our security interest and acquired substantially all of the assets of HNI at a foreclosure sale held February 2, 2007.
We recently entered into a joint venture to which we are transferring relevant portions of the patents and assets formerly held by HNI. That entity will engage in the secured pathway system business, using the Holocom trade name that was acquired as part of the foreclosure process. The major portion of the interest held by HNI in the multi-domain computer business, which is in the early stages of development under a license from the original inventor, is likely to be sold soon to a group that has expressed interest. It is anticipated that a 10% interest will be retained by our joint venture entity.
In another important step, we are in the process of engaging a business development executive or advisory group whose primary responsibility will be to identify and qualify other acquisition and joint venture opportunities for consideration. In addition, we have had preliminary discussions to be followed with meetings in the near future regarding a possible joint venture in China or Taiwan intended to update and adapt our Ignite microprocessor technology for various market applications.
Settlements. Litigation between Patriot Scientific and Russell Fish has been settled. The parties had each filed legal actions pertaining to a consulting agreement that had been signed by Mr. Fish and a family trust representative and a previous officer of Patriot Scientific in July, 2004.
In December 2006, the Fish lawsuit was settled in principle through mediation and on February 14, 2007 the settlement was finalized. Terms of the settlement require the Company to pay $3,400,000 in cash on February 14, 2007 (payment was made) and $3,000,000 on May 1, 2007, make a donation of $15,000 on February 14, 2007 on behalf of Russell H. Fish III to Maasai Power and Education Project, Inc., and pay Fish the equivalent of 4% of 50% of the next $100 million of gross license fees as they are collected by Phoenix Digital and as distributions are made to Patriot, after excluding the first $20 million collected by Phoenix Digital after December 1, 2006. Patriot's commitment to make payments to Fish related to such future license revenues will not exceed $2 million. The total of payments pursuant to this settlement is expected to be appreciably lower than contingent payments provided for in the agreement in dispute.
In June, 2006, we settled litigation involving a dispute between Patriot Scientific and Beatie and Osborne, a law firm that had formerly represented Patriot Scientific in certain patent infringement litigation before we terminated their services. The firm had claimed they were owed certain amounts for fees and expenses as well as contingent fees based upon future license fees. The terms of settlement included, among others, release of their claims in return for payment by Patriot of certain amounts toward fees and expenses.
Patent Litigation. As previously reported, Patriot Scientific is a party to patent infringement litigation pending in the Federal District Court, Eastern Texas Division. The TPL Group and Patriot Scientific are plaintiffs seeking damages from various electronics manufacturing companies named as defendants who are alleged to be infringing on one or more patents in the portfolio jointly owned by Patriot Scientific and the TPL Group. The petitions for relief included requests that the court issue permanent injunctions against the sale by defendants of products produced without licenses to use our patented technology.
In recent developments in February 2007, a license agreement was entered with NEC Corporation and certain NEC subsidiaries that are defendants in the lawsuit. In connection with that transaction, four of the five NEC defendants, excluding NEC Electronics America, Inc., will be dismissed from the lawsuit.
Also in February of 2007, a petition was filed with the Patent and Trademark office by an independent non-governmental entity. The petition requests that certain of our microprocessor patents be invalidated on the grounds of the alleged existence of previously undisclosed prior art. While we cannot guarantee that the petition will be unsuccessful, we strongly believe in the validity and enforceability of the microprocessor patents which are the subject of the petition, and believe the petition is without merit.
As separate applications for re-examination had already been filed with the Patent and Trademark Office by parties involved in the patent litigation pending in Texas, we found it curious, but not alarming, when we learned of the apparently unrelated application filed by the purported public-interest group, including some gratuitous and disparaging statements included in their publicity-seeking press release.
Claiming that a patent should not have been issued due to the existence of prior art is a strategy that is often used defensively by companies seeking to avoid liability for patent infringement. Various efforts to claim the existence of prior art have been dealt with by our licensing team and their attorneys in negotiations with companies that at first had resisted licensing but later signed license agreements.
Attorneys for Patriot Scientific and the TPL Group are dealing with a constant flow of communications and activity related to the Texas litigation. An important claims construction hearing is scheduled for May 3, 2007, in which the respective parties must offer presentations to defend or attack the validity of the claims upon which the patents in issue are based. We understand that the outcome of that hearing may not be known for 30 days or more after the hearing is concluded. The ultimate trial is scheduled for November, 2007. A schedule of due dates as currently published on the court's calendar is being posted on the Patriot Scientific website at www.PTSC.com.
Summary. 2006 was a highly significant year for Patriot Scientific Corporation in which we set the foundation for future growth and progress of the company and also cleaned up a number of matters from the past. In that calendar year we:
Saw the strength of our jointly owned patent portfolio demonstrated through the signing of 12 patent portfolio licenses that resulted in Patriot Scientific receiving over $48 million as its share of license fees. Paid two cash dividends to shareholders within a period of approximately 6 weeks. Retired the last remaining convertible debentures, resulting in the company having no long-term debt. Issued restated financial statements to comply with certain SEC interpretations after having our books and records for fiscal years 2002 through 2005 re-audited. Initiated preliminary acquisition and joint venture activity toward establishing a revenue stream for the company in addition to the revenue received from patent portfolio licensing. Reached agreements that settled litigation involving disputes with parties who asserted claims based on percentage payments on hundreds of millions of dollars of future licensing revenue. The momentum of recent developments indicates that 2007 promises to be another highly significant year for Patriot Scientific and its shareholders. We appreciate your continued loyalty and support as we continue along our dynamic corporate path.
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Patriot Scientific Momentum Continues as SanDisk Purchases Moore Microprocessor Patent(TM) Portfolio License via COMTEX
March 9, 2007
CARLSBAD, Calif., March 9, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Patriot Scientific Corporation (OTC Bulletin Board: PTSC) confirmed today that SanDisk, the world's largest supplier of flash storage card products, has purchased a Moore Microprocessor Patent(TM) (MMP) Portfolio license. Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense, a TPL Group enterprise, exclusively manages.
SanDisk is the 15th company to join the distinguished roster of global manufacturers that have captured early-mover MMP licensing berths in specific industry segments since January 2006. Alliacense again confirmed that subsequent licensees in segments where early tiers have been secured are subject to progressively higher royalty rates on relevant products.
The intellectual property assets protected by the MMP Portfolio encompass fundamental design techniques that enable higher performance and lower cost digital electronic systems ranging from cell phones and portable music players to communications infrastructure and medical equipment as well as automobiles, which today utilize dozens of microprocessors.
"As a co-owner of the MMP Portfolio we are pleased to welcome SanDisk to the growing family of companies participating in the MMP Portfolio Licensing Program," said David Pohl, chairman and CEO of Patriot Scientific Corporation. He noted that HP, Casio, Fujitsu, Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood, Agilent, Lexmark, Schneider Electric, NEC Corporation and Funai Electric have purchased MMP Portfolio licenses in the past 13 months. Intel and AMD are also licensees.
Pohl noted that the strong momentum of the licensing program validates the decision by Patriot's board of directors in June 2005 to shift the company's primary business model from manufacturing and marketing products to a model currently focused on licensing their joint venture MMP patent portfolio. He emphasized that Patriot Scientific invested millions of dollars and hundreds of thousands of man-hours over 12 years or more developing and bringing to market products based upon the company's intellectual property, including IP contained in the MMP Portfolio.
About SanDisk
SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high- density flash memory and controller technology. SanDisk is headquartered in Milpitas, Calif., and has operations worldwide with more than half its sales outside the U.S. For additional information, visit www.sandisk.com.
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(TM) Portfolio, 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 fundamental to the design of modern microprocessors, microcontrollers, Digital Signal Processors (DSPs), embedded processors and System-on-Chip (SoC) implementations.
About Alliacense
Alliacense is a TPL Group Enterprise executing best-in-class design and implementation of Intellectual Property (IP) 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 IP portfolios. Founded in 1988, The TPL Group has emerged as a global coalition of high technology enterprises involved in the development, management and commercialization of IP assets as well as the design, manufacture and sales of proprietary products based on these same IP assets. For more information, visit 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, patent litigation, 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). PTSC and Ignite are trademarks of Patriot Scientific Corporation. All other trademarks belong to their respective owners.
CONTACTS: Patriot Investor Relations: Hawk Associates, Frank Hawkins or Ken AuYeung (305) 451-1888 info*hawkassociates.com Patriot Media Relations: The Hoffman Agency, John Radewagen, (408) 975-3005 jradewagen*hoffman.com Alliacense Media Relations: Tom Rigoli, Mindpik, (650) 969-5986 rigoli*mindpik.com SOURCE Patriot Scientific Corporation
Frank Hawkins or Ken AuYeung of Hawk Associates, +1-305-451-1888,info*hawkassociates.com, for Patriot Investor Relations; or John Radewagen of TheHoffman Agency, +1-408-975-3005, jradewagen*hoffman.com, for Patriot Media Relations;or Tom Rigoli of Mindpik, +1-650-969-5986, rigoli*mindpik.com, for Alliacense MediaRelations http://www.patriotscientific.comPosts: 3255 | From: Los Angeles California | Registered: Jan 2006
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Patriot, Intel in patent squabble The eight-employee semiconductor designer files lawsuits against five Japanese computer makers, saying they infringed on its patents by selling Pentium-based PCs. By Michael Kanellos Staff Writer, CNET News.com Published: February 10, 2004, 12:37 PM PST Tell us what you think about this storyTalkBack E-mail this story to a friendE-mail View this story formatted for printingPrint Add to your del.icio.usdel.icio.us Digg this storyDigg this
Patriot Scientific, an eight-employee semiconductor designer, has filed lawsuits alleging that five computer makers infringed its patents by selling Pentium-based computers, a move that has drawn a suit in response from Intel.
The struggling San Diego-based company, which reported revenue of $52,000 and a net loss of $873,000 in the quarter that ended Nov. 30, has filed lawsuits against Japanese PC manufacturers Sony, Matsu****a, Fujitsu, Toshiba and NEC, alleging they infringed Patriot's patents by selling computers containing Pentium chips that run at 120MHz or higher.
Chips running at this speed have been around since late 1995 and are in the bulk of desktop, notebooks and servers operating today. More suits against other PC makers may follow, Patriot has indicated.
Theoretically, the lawsuits could lead to millions of dollars in damages. Patriot has said that its intellectual property has been incorporated into $150 billion worth of semiconductors. It is difficult to evaluate the validity of Patriot's claims, said Richard Belgard, a patent consultant, but if the company can show validity, it should be fairly straightforward to establish whether infringement occurred.
Intel is fighting Patriot's claims. Last week, the chipmaking giant filed an action for declaratory relief in the U.S. District Court for the Northern District of California. Its suit seeks a ruling that Intel's intellectual property does not infringe Patriot's patents.
"After reviewing the suits against our customers, it became clear to us that Patriot was really claiming our microprocessors infringed," said Chuck Mulloy, an Intel spokesman.
Patriot, which has not sued Intel, has said it will vigorously defend itself in the declaratory relief action and file a counterclaim.
Patriot has not identified other potential defendants but has said that several electronics manufacturers are benefiting from its technology. The selection of Japanese defendants for the first round of suits may have been deliberate, noted one source, because Japanese companies have historically shown a tendency to settle early. Patriot has not commented on this matter.
Invite Michael Kanellos into your in-box Senior department editor Michael Kanellos scrutinizes the hardware industry in a weekly column that ranges from chips to servers and other critical business systems. Enterprise Hardware every Wednesday.
The claims primarily revolve around a patent titled "High Performance Microprocessor Having Variable Speed System Clock," no. 5,809,336 in the U.S. Patent and Trademark Office.
In microprocessors, time is kept by a vibrating crystal. In the early days of the business, processors operated at the same pace of the vibrating crystal. Microprocessors, however, started to move much faster than the crystal, requiring an internal mechanism to keep the two synchronized, said Jim Turley, an independent chip analyst and a member of Patriot's scientific advisory board.
Around six months ago, Patriot's executives determined that they had a claim against PC makers using Pentium chips, Turley said. He did not comment on the merits of the suit but said "it looks like (the original inventors) were onto something clever."
The patent application was filed in June 1995, and itself grew out of a patent application from August 1989. The U.S. patent office granted the patent in September 1998.
Patriot has seen better days. Founded in 1987, the company specialized in embedded processors for communications and medical equipment. At its peak, the company had 32 employees, said CEO Jeff Walin, who joined the company in 2002.
"The company is being funded on a dead equity basis," said Walin, explaining that Patriot is surviving by selling debentures.
The publicity surrounding the suit has caused Patriot's stock to rise from 7 cents to 12 cents.
Intel paid Intergraph hundreds of millions to settle two lawsuits that alleged Intel's Itanium and Pentium chips violated Intergraph's patents. The Intergraph settlements, however, ended after lengthy court proceedings and discovery.
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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Patriot Scientific Corporation Launches New Marketing and Awareness Program with AGORACOM Print E-mail Enable live quotes RSS Digg it Del.icio.us
Last Update: 11:32 AM ET Mar 16, 2007
CARLSBAD, Calif., March 16, 2007 /PRNewswire-FirstCall via COMTEX/ -- Patriot Scientific Corporation (PTSC PTSC News , chart , profile , more
Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: ) ("Patriot") today announced it has retained the services of AGORACOM Investor Relations ("AGORACOM") ( http://www.agoracom.com) to provide an online marketing Web-based awareness campaign. Patriot's aim with this agreement is to augment its current public relations and investor relations strategies in an effort to reach a new investor base, broaden the investment audience and further communicate the value of Patriot's intellectual property to the investment community at large. From strategy to execution, AGORACOM will manage the online marketing process. This new initiative will increase Patriot's marketing, branding and distribution network utilizing power of AGORACOM's relationships with the following global and industry leaders:
-- Blackberry - Exclusive provider of small-cap content to all 5,200,000 + global devices -- Yahoo Finance - Exclusive provider of all front-page small-cap featured content (Canada) and exclusive provider of small-cap IR programs through U.S. portal -- AOL Finance - Exclusive provider of all small-cap content (Canada)
AGORACOM's combination of legitimate, quantifiable distribution through Tier-1 websites will help create online exposure, brand awareness and marquis coverage for Patriot amongst a target audience of more than 1.3 million small- cap investors per month. In addition, from a communications point of view, Patriot will benefit from the use of a dedicated investor relations community, webcasting, podcasting, ****ging and other Web 2.0 tools that will help the company's message resonate through the entire online investment community. David Pohl, chairman and CEO of Patriot, stated, "We are taking this action to significantly increase our efforts to communicate with existing and potential new shareholders. Patriot Scientific is on an exciting and dramatic corporate path, with a 'David and Goliath' story." Pohl noted that in 2005 Patriot shifted its focus from making and marketing its microprocessor to licensing its patent portfolio. More than 400 manufacturing companies around the globe have been put on notice that they appear to be infringing on proprietary intellectual property in Patriot's jointly owned patent portfolio. Pohl said 15 major global manufacturers signed license agreements in the past 14 months, including HP, Casio, Fujitsu, Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood, Agilent, Lexmark, Schneider Electric, NEC Corporation and Funai Electric. Intel and AMD are also licensees. Negotiations with other well-known names and brands are ongoing. The patents in Patriot's jointly owned portfolio, marketed as the Moore Microprocessor Patent(TM) (MMP) Portfolio, encompass fundamental design techniques that enable higher performance and lower cost digital electronic systems ranging from cell phones and portable music players to communications infrastructure and medical equipment as well as automobiles, which today utilize dozens of microprocessors. "Patriot's presence on irrefutable Tier-1 websites will amplify the outreach of our news and corporate developments going forward," Pohl said. "This agreement will expand the breadth and reach of the Patriot story and should vastly increase Patriot's visibility. Our goal is to increase the public's knowledge and awareness of our company and the investment opportunity afforded by our stock." Hawk Associates will continue to provide daily professional IR functions including, drafting press releases, producing client profiles and addressing shareholder questions. AGORACOM will provide the online vehicle for broader distribution of information, to expand Patriot's online presence. The Hoffman Agency will continue to provide public relations counsel and media representation. Interested investors will be able to visit the Patriot IR Hubs at http://www.agoracom.com/IR/Patriot, and at http://www.hawkassociates.com/ptscprofile.aspx, in addition to the Patriot Scientific web site at http://www.ptsc.com. About AGORACOM AGORACOM is a leading outsourced investor relations firm for small-cap companies. AGORACOM's exclusive IR HUB delivers two-way investor relations and communications that provides 100% transparency, accessibility, equality and near real-time communications for all shareholders and the investment community. AGORACOM has specialized in small-cap investor relations since 1997 and is the exclusive provider of all Small-Cap Centers to Yahoo Finance Canada, The AOL Small Cap Channel and every Blackberry device on the planet. 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. About the Patent Portfolio The patent portfolio, marketed as the Moore Microprocessor Patent(TM) Portfolio, 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 fundamental to the design of modern 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. For more information, visit 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, results of litigation, 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). PTSC and Ignite are trademarks of Patriot Scientific Corporation. All other trademarks belong to their respective owners.
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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Still holding my shares... This one will move up a d become a good money maker.... Just a matter of time
Posts: 1101 | From: Georgia | Registered: Apr 2006
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Patriot Scientific Confirms Continuing Momentum as Sharp Purchases Moore Microprocessor Patent(TM) Portfolio License Print E-mail Enable live quotes RSS Digg it Del.icio.us
Last Update: 9:05 AM ET Apr 11, 2007
CARLSBAD, Calif., April 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Patriot Scientific Corporation (PTSC PTSC News , chart , profile , more
Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: ) confirmed today that Sharp Corporation has purchased a Moore Microprocessor Patent(TM) (MMP) Portfolio license. Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense, a TPL Group enterprise, exclusively manages. Sharp is the 16th company to join the distinguished roster of global manufacturers that have captured early-mover MMP licensing berths in specific industry segments since January 2006. Alliacense again confirmed that subsequent licensees in segments where early tiers have been secured are subject to progressively higher royalty rates on relevant products. The intellectual property assets protected by the MMP Portfolio encompass fundamental design techniques that enable higher performance and lower cost digital electronic systems ranging from cell phones and portable music players to communications infrastructure and medical equipment as well as automobiles, which today utilize dozens of microprocessors. "As a co-owner of the MMP Portfolio we are pleased to welcome Sharp to the growing family of companies participating in the MMP Portfolio Licensing Program," said David Pohl, chairman and CEO of Patriot Scientific Corporation. He noted that HP, Casio, Fujitsu, Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood, Agilent, Lexmark, Schneider Electric, NEC Corporation, Funai Electric and SanDisk have purchased MMP Portfolio licenses in the past 14 months. Intel and AMD are also licensees. Pohl noted that the strong momentum of the licensing program validates the decision by Patriot's board of directors in June 2005 to shift the company's primary business model from manufacturing and marketing products to a model currently focused primarily but not exclusively on licensing their joint venture MMP patent portfolio. He emphasized that Patriot Scientific invested millions of dollars and hundreds of thousands of man-hours over 12 years or more developing and bringing to market products based upon the company's intellectual property, including IP contained in the MMP Portfolio. "We will continue to seek and evaluate opportunities to diversify our revenue stream by developing and marketing new technologies, entering into joint ventures or by acquiring other companies and technologies," Pohl stated, "always pointed toward the goal of increasing the financial position and strength of the company and providing value to our shareholders." Since its founding in 1912, Sharp Corporation has fashioned a global name as a comprehensive electronics manufacturer. Focused on consumer and information products, Sharp recently demonstrated at the Consumer Electronics Show the world's largest LCD TV (108-inch) as well as wireless image-transfer from cameras and cell phones to TVs, and the industry's first modems for transferring two high-definition feeds through a single power line in the home. For more information, visit www.sharp-world.com. 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 . Copies of Patriot Scientific press releases, current price quotes, stock charts and other valuable information for investors may also be found at http://www.hawkassociates.com,http://www.americanmicrocaps.com, and at www.agoracom.com/IR/Patriot, in addition to the company's web site. The patent portfolio, marketed as the Moore Microprocessor Patent(TM) Portfolio, 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 fundamental to the design of modern microprocessors, microcontrollers, Digital Signal Processors (DSPs), embedded processors and System-on-Chip (SoC) implementations. Alliacense is a TPL Group Enterprise executing best-in-class design and implementation of Intellectual Property (IP) 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 IP portfolios. Founded in 1988, The TPL Group has emerged as a global coalition of high technology enterprises involved in the development, management and commercialization of IP assets as well as the design, manufacture and sales of proprietary products based on these same IP assets. For more information, visit 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, patent litigation, 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). PTSC and Ignite are trademarks of Patriot Scientific Corporation. All other trademarks belong to their respective owners.
CONTACTS:
Patriot Investor Relations: Hawk Associates, Frank Hawkins or Ken AuYeung (305) 451-1888 info*hawkassociates.com
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News coming after hours tomorrow! Financials... lets see how well there money situation has been coming! Should bring a rise in the Stock tomorrow if not for sure on Tuesdays!
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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Posted by: wolfpackvoltare In reply to: None Date:4/15/2007 11:00:21 PM Post #of 5184
From TD Ameritrade:
Valuation
Because PTSC is in the Communications Equipment industry and has positive earnings, the PE ratio is the most appropriate valuation measure. The Price to Book ratio is excluded since it likely underestimates the company's book value by overlooking hidden assets such as intellectual property. The Price to Sales ratio is not as meaningful as the PE ratio, due to the company's positive earnings. Therefore PTSC seems valued at a discount with a PE value of 12.719, one of the lowest in the Communications Equipment industry,
Profitability
Although the net margin at PTSC is among the highest in the Communications Equipment industry, its operating profit margin is among the lowest. This could mean that the company pays less for interest and taxes than do its peers.
Dividend
PTSC pays an annual dividend of $0.04 (Should be+.06) which, at its current stock price, produces a yield of 6.90%, above both the Communications Equipment industry average of 5.28% and the S&P 500 Index yield of 2.15%. This is even more impressive in that few companies in the Communications Equipment industry even pay a dividend.
Growth Rates
N/C
Effectiveness
The two meaningful measures of management effectiveness for PTSC are Return on Assets and Revenues Per Employee with values of 155.75% and -- respectively. By these measures the company is one of the most efficient companies in the Communications Equipment industry at managing their resources and at generating revenues from employees.
Financial Strength
PTSC has little or no debt and, thus, little financial risk.
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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News Release Alliacense Appoints Andre-Pascal Chauvin Vice President to Manage European Licensing Activities from Newly Established Paris Office CUPERTINO, Calif. - April 19, 2007 - Alliacense, a TPL Group Enterprise, today appointed Andre-Pascal Chauvin Vice President, Licensing with primary responsibility for implementing licensing programs in Europe and managing the newly established Alliacense office in Paris. Chauvin brings extensive intellectual property (IP) management experience to his new post including 18 years with Alcatel Group (now Alcatel-Lucent) where for the past seven years he served as Vice President responsible for the global IPR Strategy and Valorization Department.
Commenting on the appointment, TPL Group Chairman Dan Leckrone said, "Our Alliacense team continues to attract world-class talent with successful track records in establishing, building, and demonstrating the value of IP Assets in technology-based industries. We're confident that Pascal will effectively spearhead the expansion of our IP licensing programs in Europe, while supporting our worldwide activities in London, Lugano, Vienna and Sofia as well as in Taipei, Taiwan and Chennai, India."
The appointment of Chauvin and establishment of the Alliacense office in Paris reflect the growing global interest in TPL's Technology Portfolios. According to Mike Davis, Alliacense Senior Vice President of Licensing, the overwhelming advantages of TPL's Technology Portfolios continue to attract major companies around the world. He noted that since January 2006, HP, Casio, Fujitsu, Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood, Agilent, Lexmark, Schneider Electric, NEC Corporation, Funai Electric, SanDisk and, most recently, Sharp Corporation have all purchased licenses to use TPL Technology Portfolios managed by Alliacense.
During Chauvin's last 11 years at Alcatel, he served in key management positions, initially as Secretary General of Alcatel Labs, the French subsidiary of Alcatel Telecom. In developing the IPR Strategy and Valorization Department to include 15 experts in marketing, patents and negotiations, he implemented strategies to maximize the value of Alcatel's IP assets including approximately 17,000 patents and applications. Accordingly, he was instrumental in generating substantial licensing revenue, and refocusing the IP Group on business value while he also engaged several strategic litigations resulting in major benefits for Alcatel. Earlier in his career, Chauvin served as CFO for three subsidiaries of the Alstrom Group and as Deputy Director for SPIE-Batignolles Civil Engineering. Chauvin is a Board member of the Licensing Executive Society in France and regularly participates as a speaker and instructor in international licensing seminars. A former Labour Court Magistrate in the Paris area, he holds degrees in Finance and Economy from Institut Etudes Politiques de Paris.
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. Founded in 1988, The TPL Group has emerged as a coalition of high technology enterprises involved in the development, management and commercialization of proprietary product technologies as well as the design, manufacture and sales of proprietary products based on those technologies and corresponding IP assets. For more information, visit www.alliacense.com. __________________
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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10-Q: PATRIOT SCIENTIFIC CORP Print E-mail Enable live quotes RSS Digg it Del.icio.us
Last Update: 4:23 PM ET Apr 20, 2007
(EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations THE FOLLOWING DISCUSSION INCLUDES FORWARD-LOOKING STATEMENTS WITH RESPECT TO OUR FUTURE FINANCIAL PERFORMANCE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED AND FROM HISTORICAL RESULTS DEPENDING UPON A VARIETY OF FACTORS, INCLUDING THOSE DESCRIBED BELOW UNDER THE SUB-HEADING, "RISK FACTORS" SEE ALSO OUR ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED MAY 31, 2006. Overview During the fiscal years ended May 31, 2005 and May 31, 2006, the Company entered into agreements for the licensing of its technology with Advanced Micro Devices Inc. ("AMD") and Intel Corporation, among the largest of the microprocessor manufacturers. During the 2006 fiscal year, the Company entered into licensing agreements with Hewlett-Packard, Fujitsu and Casio through its joint venture entity, Phoenix Digital. Additional licensing agreements for the use of the Company's technology were signed through its joint venture entity during the nine months ended February 28, 2007. We believe that these agreements represent validation of the Company's position that its intellectual property was and is being infringed by major manufacturers of microprocessor technology. Also, we believe the agreements demonstrate the value of the Company's intellectual property in that they are "arms length" transactions with major electronics manufacturers. In June 2005, the Company entered into a series of agreements with Technology Properties Limited, Inc. ("TPL") and others to facilitate the pursuit of infringers of its intellectual property. The Company intends to continue its joint venture with TPL to pursue license agreements with infringers of its technology. Management believes that utilizing the option of working through TPL, as compared to creating and using a Company licensing team for those activities, avoids a competitive devaluation of the Company's principal assets and is a prudent way to achieve the desired results as the Company seeks to obtain fair value from users of its intellectual property. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS On September 8, 2006, the Company determined that the manner in which it had accounted for the reset conversion feature and embedded put option of certain of its convertible debentures was not in accordance with Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting For Derivative Instruments and Hedging Activities, as amended, and Emerging Issues Task Force ("EITF") Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock. The Company determined that the reset conversion feature was an embedded derivative instrument and that the conversion option was an embedded put option pursuant to SFAS No. 133. The accounting treatment of derivative financial instruments required that the Company record the derivatives and related warrants at their fair values as of the inception date of the convertible debenture agreements and at fair value as of each subsequent balance sheet date. In addition, under the provisions of EITF No. 00-19, as a result of entering into the convertible debenture agreements, the Company was required to classify all other non-employee warrants as derivative liabilities and record them at their fair values at each balance sheet date. Any change in fair value was required to be recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company was required to record a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company was required to record non-operating, non-cash income. Accordingly, in connection with its restatement adjustments, the Company has appropriately reflected the non-operating, non-cash income or expense resulting from changes in fair value. The Company had previously not recorded the embedded derivative instruments as a liability and did not record the related changes in fair value. The Company did not have any derivative instruments at May 31, 2006 as all derivative instruments were settled prior to May 31, 2006. In addition, the Company determined the manner in which it accounted for its interest in Phoenix Digital was not in accordance with appropriate accounting literature. Beginning in June 2005, the Company accounted for its interest in Phoenix Digital as a variable interest entity, as defined in FASB Interpretation Based on the foregoing, the Company's Board of Directors determined that the Company was required to restate its financial results for the year ended May 31, 2005 and for the three month periods ended August 31, 2005, November 30, 2005 and February 28, 2006. See Note 2 to the accompanying condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a summary of the effects of the restatement adjustments on the Company's condensed consolidated financial statements. The information provided in this Management's Discussion and Analysis of Financial Condition and Results of Operations reflects the effect of the restatement adjustments. Critical Accounting Policies and Estimates Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require us to make estimates and judgments that significantly affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods. We believe the following critical accounting policies affect our most significant estimates and judgments used in the preparation of our condensed consolidated financial statements. 1. Revenue Recognition Accounting for revenue recognition is complex and affected by interpretations of guidance provided by several sources, including the Financial Accounting Standards Board ("FASB") and the Securities and Exchange Commission ("SEC"). This guidance is subject to change. We follow the guidance established by the SEC in Staff Accounting Bulletin No. 104, as well as generally accepted criteria for revenue recognition, which require that, before revenue is recorded, there is persuasive evidence of an arrangement, the fee is fixed or determinable, collection is reasonably assured, and delivery to our customer has occurred. Applying these criteria to certain of our revenue arrangements requires us to carefully analyze the terms and conditions of our license agreements. Revenue from our technology license agreements is generally recognized at the time we enter into a contract and provide our customer with the licensed technology. We believe that this is the point at which we have performed all of our obligations under the agreement; however, this remains a highly interpretive area of accounting and future license agreements may result in a different method of revenue recognition. Fees for maintenance or support of our licenses are recorded on a straight-line basis over the underlying period of performance. 2. Assessment of Contingent Liabilities We are involved in various legal matters, disputes, and patent infringement claims which arise in the ordinary conduct of our business. We accrue for estimated losses at the time when we can make a reliable estimate of such loss and it is probable that it has been incurred. By their very nature, contingencies are difficult to estimate. We continually evaluate information related to all contingencies to determine that the basis on which we have recorded our estimated exposure is appropriate. 3. Stock Options and Warrants We account for equity issuances to non-employees in accordance with Statement of Financial Accounting Standards ("SFAS") No. 123, Accounting for Stock Based Compensation , and Emerging Issues Task Force ("EITF") Issue No. 96-18, Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods and Services . All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the third-party performance is complete or the date on which it is probable that performance will occur. Prior to June 1, 2006, we accounted for stock-based compensation issued to employees using the intrinsic value method of accounting prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees and related pronouncements. Under this method, compensation expense was recognized over the respective vesting period based on the excess, on the date of grant, of the fair value of our common stock over the grant price, net of forfeitures. Deferred stock-based compensation was amortized on a straight-line basis over the vesting period of each grant. On June 1, 2006, we adopted SFAS No. 123(R), Share-Based Payment, which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors related to our stock option plans based on estimated fair values. We adopted SFAS No. 123(R) using the modified prospective transition method, which requires the application of the accounting standard as of June 1, 2006, the first day of our fiscal year 2007. Our condensed consolidated financial statements as of and for the nine months ended February 28, 2007 reflect the impact of adopting SFAS No. 123(R). In accordance with the modified prospective transition method, our consolidated financial statements for prior periods have not been restated to reflect, and do not include, the impact of SFAS No. 123(R). The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statement of operations. As stock-based compensation expense recognized in the condensed consolidated statement of operations for the nine months ended February 28, 2007 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. SFAS No. 123(R) requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the nine months ended February 28, 2007 of 5% was based on historical forfeiture experience and estimated future employee forfeitures. In our pro forma information required under SFAS No. 123 for the periods prior to fiscal 2007, we accounted for forfeitures as they occurred. Employee stock-based compensation expense recognized under SFAS No. 123(R) for the nine months ended February 28, 2007 was approximately $2,356,000, determined by the Black-Scholes valuation model. 4. Debt Discount We have issued warrants as part of our convertible debentures and other financings. We value the warrants using the Black-Scholes pricing model based on expected fair value at issuance and the estimated fair value is recorded as debt discount. The debt discount is amortized to non-cash interest over the life of the debenture assuming the debenture will be held to maturity, which is normally two years. If the debenture is converted to common stock previous to its maturity date, any debt discount not previously amortized is expensed to non-cash interest. As of May 31, 2006, the debt discount has been fully amortized as the debt instruments were settled prior to May 31, 2006. 5. Derivative Financial Instruments In connection with the issuance of certain convertible debentures, the terms of the debentures included a reset conversion feature which provided for a conversion of the debentures into shares of the Company's common stock at a rate which was determined to be variable. The conversion option was therefore deemed to be an embedded put option pursuant to SFAS No. 133, Accounting For Derivative Instruments and Hedging Activities , as amended, and EITF Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock . The Company determined that the reset conversion feature was an embedded derivative instrument and that the conversion option was an embedded put option pursuant to SFAS No. 133. The accounting treatment of derivative financial instruments required that the Company record the derivatives and related warrants at their fair values as of the inception date of the convertible debenture agreements and at fair value as of each subsequent balance sheet date. In addition, under the provisions of EITF No. 00-19, as a result of entering into the convertible debenture agreements, the Company was required to classify all other non-employee warrants as derivative liabilities and record them at their fair values at each balance sheet date. Any change in fair value was recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company recorded non-operating, non-cash income. As of May 31, 2006, the Company does not have any outstanding derivative instruments as the related debt instruments were settled prior to May 31, 2006. 6. Patents and Trademarks Patents and trademarks are carried at cost less accumulated amortization and are amortized over their estimated useful lives of four years. The carrying value of patents and trademarks is periodically reviewed and impairments, if any, are recognized when the expected future benefit to be derived from an individual intangible asset is less than its carrying value. 7. Income Taxes The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company believes that a substantial majority of the deferred tax assets recorded on its balance sheet will ultimately be recovered. However, should there be a change in the Company's ability to recover the deferred tax assets, the tax provision would increase in the period in which the Company determined that the recovery was not probable. 8. Investment in Affiliated Companies The Company has a 50% interest in Phoenix Digital. This investment is accounted for using the equity method of accounting since the investment provides the Company the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee of between 20% and 50%, although other factors, such as representation on the investee's Board of Directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment, originally recorded at cost, is adjusted to recognize the Company's share of net earnings or losses of the investee and is recognized in the condensed consolidated statement of operations in the caption "Equity in earnings of affiliated company". The Company owns 100% of the preferred stock of Scripps Secured Data, Inc. ("SSDI") This investment is accounted for at cost as the investment is in preferred shares which do not share in the earnings of SSDI and the Company does not have the ability to the ability to exercise significant influence over SSDI. The Company reviews its investments in affiliated companies to determine whether events or changes in circumstances indicate that its carrying amount may not be recoverable. The primary factors the Company considers in its determination are the financial condition, operating performance and near term prospects of the investee. If a decline in value is deemed to be other than temporary, the Company would recognize an impairment loss. Results of Operations Comparison of the Nine Months Ended February 28, 2007 and Nine Months Ended February 28, 2006. In June 2005, we entered into an agreement with Intel Corporation licensing our intellectual property for a one-time payment of $10,000,000. The license revenue was recognized in the quarter ended August 31, 2005. During the nine month period ended February 28, 2007 no such agreement was signed by the Company. In connection with entering into the agreement with Intel Corporation, we entered into an agreement with the co-owner of our patented technologies, through which we settled all legal disputes between us and agreed to jointly pursue others who have infringed upon our joint rights. Future licensing agreements for the use of the Company's technology are being made through a joint venture entity that is accounted for in accordance with the equity method of accounting for investments and, accordingly, the financial results of the joint venture are being recorded in the other income section of the Company's condensed consolidated statement of operations. Product sales amounting to approximately $297,000 and $67,000 were also recorded in the nine month periods ended February 28, 2006 and 2007, respectively, in connection with communications products that are no longer marketed by the Company. Inventory associated with the sales of these communications products is carried at zero value. Cost of sales of approximately $103,000 for the nine months ended February 28, 2006 consists of payments made to subcontractors for materials and labor in connection with the product sales. For the nine months ended February 28, 2007, no such costs were incurred on the product sales. Total revenues amounted to approximately $10,297,000 and $67,000 for the nine months ended February 28, 2006 and 2007, respectively. Research and development expenses decreased from approximately $226,000 for the nine months ended February 28, 2006 to zero for the nine months ended February 28, 2007. Presently, we do not expect to replace recently discontinued "in house" research and development operations. However, the Company may utilize consultants and other outsourced contractors for research and development activities in future periods. Selling, general and administrative expenses increased from approximately $2,517,000 for the nine months ended February 28, 2006 to approximately $5,915,000 for the nine months ended February 28, 2007. Legal and accounting related expenses increased by approximately $1,003,000 for the nine months ended February 28, 2007 compared with the nine months ended February 28, 2006 related to legal and accounting matters in connection with the restatement of the Company's financial statements for the fiscal years 2005, 2004, 2003 and 2002, as well as the quarterly reports for the periods ended August 31, 2005, November 30, 2005 and February 28, 2006 and the Company's required compliance with Sarbanes-Oxley procedures. Legal expenses related to a dispute with a former executive officer as well as other legal proceedings involving the interests of a co-inventor of a portion of the Company's technology and other legal matters contributed to the increase in legal expenses for the nine months ended February 28, 2007. Salary costs and related expenses included non-cash expenses associated with the fair value of options granted during the period in accordance with SFAS No. 123(R). On June 5, 2006, 1,500,000 options were granted to the chief executive officer of the Company resulting in non-cash compensation expense amounting to approximately $1,527,000. On October 23, 2006, 230,000 options were granted to employees resulting in non-cash compensation expense of approximately $184,000. On February 9, 2007, 1,070,000 options were granted to employees and directors resulting in non-cash compensation expense of approximately $584,000. Additional non-cash compensation for the nine months ended February 28, 2007 amounted to $61,000 for vesting of employee stock options in accordance with SFAS No 123(R). No such compensation expense was incurred for the nine months ended February 28, 2006. Public and investor relations expenses increased by approximately $197,000 for the nine months ended February 28, 2007 as compared with the nine months ended February 28, 2006 as a result of a change in the Company's public relations firm and one time contracts with investor relations consultants. Other salary expenses increased by approximately $167,000 for the nine months ended February 28, 2007 as compared with the nine months ended February 28, 2006 due to bonuses and 401(k) employer matching of which no such expense was incurred for the nine months ended February 28, 2006. Insurance expense increased by approximately $110,000 for the nine months ended February 28, 2007 as compared with the nine months ended February 28, 2006 primarily as a result of increased costs of directors and officers insurance coverage. Travel and related expenses increased approximately $19,000 for the nine months ended February 28, 2007 as compared with the nine months ended February 28, 2006 due to increased travel to attend various lawsuit mediations. Decreases in expenses were recorded for the nine months ended February 28, 2007 as compared with the nine months ended February 28, 2006 for rent, office supplies, patent enforcement expenses, website, marketing, utilities and for other expenses in the approximate amounts of $38,000, $12,000, $74,000, $22,000, $20,000, $8,000 and $280,000, respectively. Settlement and license expenses amounting to approximately $1,918,000 were recorded during the three months ended August 31, 2005 in connection with the agreements involving the formation of a joint venture and, separately, a license agreement with Intel Corporation. The expenses consisted of both cash and non-cash elements related to incremental, direct costs of completing the transactions. In connection with the transactions, it was necessary for the Company to obtain the consent of certain debenture and warrant holders. The necessary consents, together with certain warrants held by the debenture holders and the release of their security interests in our intellectual property, were obtained in exchange for cash, new warrants and repriced warrants. The expenses resulted primarily from cash payments to debt holders of approximately $1,300,000, to co-owners of various intellectual property assets of approximately $960,000 and to a committee of the Company's board of directors of approximately $170,000. Non-cash expenses totaled approximately $82,000 and resulted primarily from the incremental value of the effect of repricing various warrants and granting other warrants in excess of the expense previously recognized for warrants granted to these security holders. Offsetting the non-cash expenses were non-cash benefits to the Company from the reconveyance of warrants, amounting to approximately $622,000. During the nine months ended February 28, 2007, the Company recorded $6,604,000 of settlement and license expense relating to the mediation agreement with Fish (see Note 8 for more information). Other income and expenses for the Company for the nine months ended February 28, 2007 included equity in the earnings of Phoenix Digital. The investment is accounted for in accordance with the equity method of accounting for investments. The Company's investment in the joint venture for the nine months ended February 28, 2007 provided income after expenses in the amount of approximately $30,402,000 resulting from licensing agreements for our intellectual property with Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood, Agilent, Lexmark, Schneider Electric, NEC Corporation and its selected subsidiaries and Funai Electric for one time payments. The Company's investment in the joint venture provided net income after expenses in the amount of approximately $28,608,000 for the nine months ended February 28, 2006. Total other income and expense for the nine months ended February 28, 2007 amounted to net other income of approximately $30,561,000 compared with total other income and expense for the nine months ended February 28, 2006 of net other income amounting to approximately $25,360,000. Changes in the fair value of warrant and derivative liabilities amounted to net other expense for the nine months ended February 28, 2006 of approximately $2,457,000 with no corresponding amount for the nine months ended February 28, 2007 as all convertible debt had been retired in prior fiscal periods. Non-cash adjustments to interest expense for the nine months ended February 28, 2006 amounted to expenses of approximately $413,000 resulting from amortization of debt discount and conversion of the remaining debentures. During the nine months ended February 28, 2006 the Company recorded a loss on debt extinguishment of $445,000 related to the 7,000,000 warrants issued to a debenture holder as consideration for entering into the reset agreements. Interest income and other income increased from approximately $172,000 for the nine months ended February 28, 2006 to approximately $499,000 for the nine months ended February 28, 2007 as interest bearing account balances increased from license revenues. During the nine months ended February 28, 2007 the Company recorded an impairment charge on the value of its note receivable from Holocom Networks, Inc. of approximately $340,000. (see Note 4 for more information). During the nine months ended February 28, 2007, the Company recorded a provision for income taxes of $4,382,911 related to federal and state taxes. Also, during the nine months ended February 28, 2006 and 2007, the Company utilized approximately $3,000,000 and $32,000,000, respectively, of its available federal net operating loss carry-forwards and approximately $3,000,000 and $16,700,000, respectively, of its available state net operating loss carry-forwards to offset its taxable income arising in the respective quarters. The Company recorded net income (as restated) for the nine months ended February 28, 2006 of $30,892,627 compared with net income of $13,725,834 for the nine months ended February 28, 2007. Comparison of the Three Months Ended February 28, 2007 and Three Months Ended February 28, 2006. In June 2005, we entered into an agreement with Intel Corporation licensing our intellectual property for a one-time payment of $10,000,000. During the three month periods ended February 28, 2007 and 2006, no such agreement was signed by the Company. In connection with entering into the agreement with Intel . . . Apr 20, 2007
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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Patriot Scientific Reports Favorable Fiscal Q3 Net Income of $9.6M, or $0.02 Diluted EPS Results Include Significant Reduction of Outstanding Warrants; Payment of Cash Dividend; Investment In New Joint Venture Print E-mail Enable live quotes RSS Digg it Del.icio.us
Last Update: 8:55 AM ET Apr 24, 2007
CARLSBAD, Calif., April 24, 2007 /PRNewswire-FirstCall via COMTEX/ -- Patriot Scientific Corporation (PTSC PTSC News , chart , profile , more
Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: ) reported net income of $9,617,559 after provision for taxes, or $0.02 per diluted share, for three months ended February 28, 2007. A copy of the company's Form 10-Q, filed April 20, 2007 with the U.S. Securities and Exchange Commission, is available on the company's website, www.ptsc.com, where visitors can now sign up for e-mail alerts. At the end of the quarter Patriot Scientific had $22,756,330 in current assets that included short-term investments and over $15,388,002 in cash and cash equivalents. Current liabilities of $3,724,956 included $3,000,000 earmarked as an expense to be paid May 1, 2007 related to a settlement of a dispute. The company has no long-term debt. In another favorable development, approximately 34,700,000 warrants have been exercised to acquire shares of the company's common stock in the period from June 1, 2006, through March 12, 2007, leaving a balance of approximately 18,000,000 unexercised warrants outstanding at April 20, 2007. The quarterly results included $11,656,603 received as the company's share of the net income of Phoenix Digital Solutions, the joint venture entity that is owned half by Patriot Scientific and half by The TPL Group. Phoenix Digital receives its income from licenses purchased by manufacturers who use technologies contained in the MMP Patent Portfolio. 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 computers, DVD players, cell phones and portable music players, to communications infrastructure, medical equipment and automobiles. The Patriot Scientific report disclosed that during the nine months ended February 28, 2007, Phoenix Digital entered into technology licensing agreements with third parties, pursuant to which it received aggregate proceeds of $64,869,000. License proceeds of $2,920,000 relating to an additional license agreement signed in February 2007 were received in March 2007. In March and April 2007, Phoenix Digital entered into licensing agreements with aggregate proceeds of $22,140,000. The dollar amount for each licensing deal varies, depending upon factors that include among other things the relevance of the patents to each licensee's revenue and the extent to which the patented technology is incorporated into specific products. "Our increasing revenues reflect continued momentum in pursuing our patent portfolio licensing strategy through our joint venture with TPL," stated Patriot Scientific Chairman and CEO David Pohl. "We had a net increase in cash of $11,403,762 during the nine months ended February 28, 2007 as we continued to strengthen our balance sheet and our financial structure. We have subsequently used some of the cash to once again pay a dividend to our shareholders as evidence of our ongoing appreciation for their support." On February 22, 2007 the board of directors of Patriot Scientific repeated its precedent-setting action of a year ago and declared a dividend of $.02 per share for qualifying stockholders and warrant holders as of March 6, 2007. The dividend was paid April 9, 2007. The board also announced that it has adopted a policy of paying a dividend every six months, subject each time to a determination by the board that payment of a dividend would then be reasonable and prudent in light of the financial condition of the company, other possible applications of the company's available resources, and relevant business considerations. "We are delighted that the strength of our patent portfolio continues to be validated by the 16 licenses that have been signed thus far with major electronics companies since January of 2006," said Pohl. "Our outlook remains positive for continued revenue based on further progress in licensing more of over 400 companies worldwide that have been notified they are candidates." Pohl reconfirmed that Patriot Scientific is continuing to actively evaluate sources and opportunities to create additional recurring revenue through possible joint ventures or acquisitions, all with the goal of increasing shareholder value. In February, 2007, Patriot acquired the assets of Holocom Networks, Inc., including patents, trademarks, and equipment, in a foreclosure proceeding. Those assets were assigned a fair value of $250,000 by Patriot for accounting purposes and were later transferred along with $120,000 in cash from Patriot to a newly-formed joint venture, Scripts Secured Data, Inc. (SSDI), in return for 100% of the convertible preferred stock of that new company. SSDI will use the Holocom brand name and continue to produce and sell the former Holocom products that protect cables carrying classified information transmitted over secure networks owned and managed by government and military organizations. Pohl said that positive initial reports from SSDI for the first 60 days of business show gradually increasing sales. Current projections, although results cannot be assured, indicate that SSDI may realize a marginal profit by the end of April 2007, after just ten weeks of business operations.
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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Patriot Scientific Announces Nokia Purchase of Moore Microprocessor Patent(TM) Portfolio License
Last Update: 3:47 PM ET May 3, 2007
CARLSBAD, Calif., May 3, 2007 /PRNewswire-FirstCall via COMTEX/ -- Patriot Scientific Corporation (PTSC : patriot scientific corp com News , chart , profile , more Last: 0.540.00-0.92% 3:37pm 05/03/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: PTSC0.54, 0.00, -0.9% ) confirmed today that Nokia, a world leader in mobile communications, has purchased a Moore Microprocessor Patent(TM) (MMP) Portfolio license. Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense, a TPL Group enterprise, exclusively manages. "The feature richness of mobile phones would not be possible without exploiting the design techniques engendered by the MMP Portfolio," said Mike Davis, Alliacense senior VP of licensing. "Such techniques are fundamental in the design of microprocessors and enable higher performance and lower cost in a host of digital products ranging from mobile phones and portable music players to communications infrastructure and medical equipment to automobiles, which today deploy dozens of microprocessors." Nokia is the 17th company to join the distinguished roster of global manufacturers that have captured early-mover MMP licensing berths in specific industry segments since January 2006. Alliacense again confirmed that subsequent licensees in segments where early tiers have been secured are subject to progressively higher royalty rates on relevant products. "As co-owner of the MMP Portfolio we are pleased to welcome Nokia as the newest addition to the growing list of global companies participating in the MMP Portfolio Licensing Program," said David Pohl, chairman and CEO of Patriot Scientific Corporation. He noted that HP, Casio, Fujitsu, Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood, Agilent, Lexmark, Schneider Electric, NEC Corporation, Funai Electric, SanDisk and Sharp Corporation have purchased MMP Portfolio licenses. Intel and AMD are also licensees. Pohl noted that the strong momentum of the licensing program validates the decision by Patriot's board of directors in June 2005 to shift the company's primary business model from manufacturing and marketing products to a model currently focused primarily but not exclusively on licensing their joint venture MMP patent portfolio. He emphasized that Patriot Scientific invested millions of dollars and hundreds of thousands of man-hours over 12 years or more developing and bringing to market products based upon the company's intellectual property, including IP contained in the MMP Portfolio. "As evidenced by information in our recent quarterly report and presented at our annual meeting of shareholders last week, we are continuing to seek and evaluate opportunities to diversify our revenue stream by developing and marketing new technologies, entering into joint ventures or by acquiring other companies and technologies," Pohl stated. "We are always focused on the goal of increasing the financial position and strength of the company and providing value to our shareholders." About Nokia Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Further information is available at www.nokia.com
-------------------- The Man looking for a Plan... Posts: 49 | From: Texas | Registered: Mar 2007
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Keeping eye on this one, solid last few days.. May be getting close to settlement...
Posts: 559 | From: MN | Registered: Apr 2006
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