(Source: PRNewswire-FirstCall)
NEW YORK, Aug. 13 /PRNewswire-FirstCall/ -- Network-1 Security Solutions, Inc. (BULLETIN BOARD: NSSI) today announced financial results for the quarter ended June 30, 2009. Network-1 had revenues of $487,000 and $514,000 for the three and six months ended June 30, 2009 as compared with revenues of $65,000 and $134,000 for the three and six months ended June 30, 2008, respectively. The increase in revenues during 2009 was related to additional licensees of Network-1's Remote Power Patent and its settlement with NETGEAR ("Netgear").
Network-1 reported a net loss of ($297,000) or $(0.01) per share for the second quarter ended June 30, 2009 as compared to a net loss of ($402,000) or $(.02) per share for the second quarter ended June 30, 2008. Included in the net loss for the quarter ended June 30, 2009 and June 30, 2008 were non-cash compensation expenses of $191,000 and $73,000, respectively.
Network-1 reported a net loss for the six months ended June 30, 2009 of $(1,262,000) or $(0.05) per share, compared with a net loss of $(721,000), or $(0.03) per share for the six months ended June 30, 2008. Included in the net loss for the six months ended June 30, 2009 and June 30, 2008 were non-cash compensation expenses of $746,000 and $146,000, respectively.
At June 30, 2009, Network-1 had approximately $3,869,000 in cash and cash equivalents which management believes will be sufficient to fund its operations until at least December 2010.
In May 2009, the Company settled its litigation with NETGEAR, Inc., one of the defendants in the patent litigation pending in United States District Court for the Eastern District of Texas. As part of the settlement and under the Company's Special Licensing Program, Netgear entered into a license agreement with the Company for the Remote Power Patent, effective April 1, 2009. Under the terms of the license, NETGEAR will license the Remote Power Patent for its full term which expires in March 2020, and pay quarterly royalties (beginning as of April 1, 2009) based on its sales of Power over Ethernet products, including those products which comply with the Institute of Electrical and Electronic Engineers 802.3af and 802.3at Standards. Licensed products include NETGEAR's Power over Ethernet enabled switches and wireless access points. The royalty rates included in the license are 1.7% of the sales price of Power Sourcing Equipment, which includes Ethernet switches, and 2% of the sales price of Powered Devices, which includes wireless access points. In addition, NETGEAR made a payment of $350,000 with respect to the settlement.
On February 11, 2008, Network-1 announced that it had initiated patent litigation against several major data networking equipment manufacturers in the United States District Court for the Eastern District of Texas, Tyler Division, for infringement of its Remote Power Patent.
