ParkerVision 2012 Q1 Conference Call
May 15, 2012
Operator: Good afternoon, and welcome to Parker Vision's first quarter 2012 conference call and webcast. Today's conference is being recorded, and all listeners are in a listen‑only mode. Following the presentation we will open up the conference call for questions and answers. The company has requested that questions and answers should be limited to one question and one follow‑up per caller.
It is now time for opening remarks and introductions. I would like to turn the conference over to Mr. Ron Stabiner with the Wall Street Group. Please go ahead, sir.
Ron Stabiner: Thank you, Siad. Good afternoon and thank you for joining us. Before we get started, I would like to remind listeners that this conference call will contain forward‑looking statements which involve known and unknown risks and uncertainties about our business and the economy and other factors that may cause actual results to differ materially from our expected achievements and our anticipated results.
Included in these factors is the ability to maintain technological advantages in the marketplace, the ability to increase manufacturing capacity to meet demands, achieving timely market introduction and acceptance of product, maintaining our patent protection, and the availability of capital among others.
Given these uncertainties and other factors for our business, listeners are cautioned not to place undue reliance on any forward‑looking statement contained within this conference call. Additional materials concerning these and other risks can be found in our filings with the Securities and Exchange Commission.
On today's call, we'll hear first from Cindy Poehlman, Chief Financial Officer of Parker Vision, who will provide a review of our company's first quarter results. And she'll be followed by Jeffery Parker, Chief Executive Officer of Parker Vision, who will provide an update of the business of the company.
And with that, I will now turn the call over to Cindy. Please go ahead.
Cindy Poehlman: Thank you Ron, and good afternoon to those of you joining us for Parker Vision's first quarter 2012 conference call. This afternoon we reported a net loss of 4.1 million dollars, or six cents per share for the first quarter of 2012, which compares to a net loss of 3.4 million dollars, or six cents per share, for the same quarter last year.
The increase in our aggregate net loss was primarily due to $400,000 in litigation‑related expenses incurred during the first quarter of 2012. Additionally, we experienced increased international travel costs during the quarter as we supported the necessary steps toward commercialization of our product with one of Via's OEM customers.
Our cash usage for the first quarter of 2012 was approximately 3.4 million dollars, and we ended the first quarter with 1.8 million dollars in cash and investments. In April, we completed a common stock offering under our shelf registration statement, which increased our working capital by approximately 8.3 million dollars.
I'm happy to answer any questions you may have at the end of the call today, but at this time, I would like to turn it over to Jeff Parker for a brief business update.
Jeffrey Parker: Thank you, Cindy, and good afternoon and thank you for joining us on our first quarter conference call update. Six weeks ago, we reported good progress in both our D2P CDMA transmit chip commercialization activities, as well as the status of our infringement litigation suit against Qualcomm. Progress in both these areas has continued as expected.
Moving toward commercialization of our D2P CDMA transmit chip, we remain actively engaged with our colleagues at the handset OEM. Our belief has been that our work with them is leading to an order that incorporates D2P into one or more of their CDMA products, and our interaction with them continues to support that belief.
While it would be great to be at a milestone that constitutes a material event to discuss with you today, we're not there yet. But we're pleased with the progress we are making. A notable update to our D2P product relates to something I discussed in our last call. I mentioned that our latest D2P silicon has continued to improve our solution's temperature benefit. That benefit is attractive as handset OEMs seek to reduce problematic heat buildup in their products.
We've shared the results of our latest testing with the OEM. These results show that our D2P transmit chain solution only adds about 10 degrees Fahrenheit of heat over ambient operating temperature, even when our transmit solution is running at full power. This is an 80 percent reduction in the incremental temperature the OEM currently has to deal with when using tradition RF transmit chains in their 3G CDMA handsets.
This important improvement in temperature is made possible by the significant technological advances our D2P technology employs. And we believe that this and other benefits reinforce why our product and technology will gain adoption.
Concerning the status of our litigation against Qualcomm for willful patent infringement, we continue to post all the public court filings on our website so that it's easy for you to follow this case. We are now less than 12 weeks away from the Markman Hearing, which has recently been rescheduled by the court to August 6th from August 10th. There will be various briefs that will be filed in preparation for that hearing in mid and late July.
We believe our assertive patents and their supporting disclosures do an excellent job of defining our intellectual property, and we look forward to discussing with the court the relevant terms in our patent claims.
While the Qualcomm litigation has certainly brought a high level of visibility to the potential value of our intellectual property portfolio, it is important not to lose sight of the fact that the litigation is based on only six of the 192 patents in our portfolio, a portfolio that we continue to grow and invest in with four new patents issuing thus far in 2012.
We firmly believe that our patents represent a foundational portfolio based on our forward‑looking innovations, and that these innovations will prove to be critical in enabling the technological revolution in the wireless industry.
As Cindy mentioned in her update, we complete an equity offering since our last call. This latest capital infusion allows us to remain focused on our business plan. Our next conference call should be shortly after the completion of the Markman Hearing, and we look forward to speaking with you at that time.
Right now, I think I'd like to go ahead and open this call for any questions you may have.
Operator: Thank you. Ladies and gentlemen, if you have a question at this time, please press star then one on your touchtone telephone. If your questions have been answered and you choose to remove yourself from the queue, please press the pound key. Again, if you have a question at this time, please press star then one on your touchtone telephones.
Again, ladies and gentlemen, if you have a question at this time, please press star then one on your touchstone telephone. If your questions have been answered and you choose to remove yourself form the queue, please press the pound key. Again, if you have a question, please press star then one.
Jeffrey: Well, it may be that since our last call was only six weeks ago, that there aren't any new questions, which I don't want to take up anymore of your valuable time then we already have. Operator, have we had any questions that have come in since...
Operator: I'm showing no questions at this time, sir.
Jeffrey: So folks, thanks for attending the call. As I said, we look forward to our update to you shortly after the Markman Hearing, and we remain focused on the business plan. And thanks for your continued support, and have a great week. Bye‑bye.
Operator: That's it for today's conference call. If you wish to access archived audio cast replay of this call, you may do so by visiting the company's website at www.parkervision.com. Thank you, you may all disconnect and have a wonderful...
Transcription by CastingWords