ParkerVision Inc. Reports Operating Results (10-Q)
Parkervision, Inc. has a market cap of $141.6 million; its shares were traded at around $1.78 with and P/S ratio of 2212.7.
Highlight of Business Operations:We are also currently engaged in patent litigation with Qualcomm Incorporated (“Qualcomm”) for their alleged infringement of a number of our patents that relate to a portion of our receiver intellectual property. We believe the outcome of this litigation is critical to our ability to generate meaningful revenue from certain of our receiver technologies, and we intend to devote substantial resources to this litigation. On August 6, 2012, the court held a claim construction hearing where we and Qualcomm presented our respective arguments for the proposed construction of disputed claim terms. The court has not yet issued a ruling on claim construction. The court has set a deadline for fact discovery of November 30, 2012, although the parties have a pending motion to extend the discovery deadline by approximately 30 days. A trial date is set for August 5, 2013. Discovery in the case is ongoing. At this time, we do not believe it is possible to predict the outcome of these proceedings. Although our litigation team is working on a partial contingency basis, we expect to incur significant costs for legal and expert fees related to this litigation.
We had no product or royalty revenue for the three or nine months ended September 30, 2012 or 2011. We have been working with one of VIA s largest OEM mobile handset customers on the design and test of a handset solution incorporating our technology, the successful completion of which, we believe, will lead to the incorporation of our technology into one or more of this OEM s products. To the extent that our technology is incorporated in the form of integrated circuits supplied by us, additional working capital may be needed to support production start-up costs including test programs and production tooling.
Marketing and selling expenses consist primarily of marketing and sales personnel costs, including share-based compensation and travel costs, and outside professional fees. Marketing and selling expenses increased approximately $79,000, or 23%, during the three months ended September 30, 2012 when compared to the same period in 2011. This increase is primarily due to an increase in employee share-based compensation expense of approximately $68,000.
The increase in share-based compensation for the three month period ended September 30, 2012 is primarily the result of new long-term incentive equity awards granted to executive and other sales and marketing employees in July 2012. For the nine month period ended September 30, 2012, share-based compensation increased only $12,000 as the expense related to the new awards was offset by reduced expense from prior years awards that became fully vested in mid-2011.
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