|PR Newswire Association LLC|
Revenue for the fourth quarter of 2012 was
Net income for the fourth quarter of 2012 was
Additional information regarding fourth quarter 2012 results is as follows:
- The improvement in operating income before patent related income compared to the fourth quarter of last year was primarily due to increased profitability in our biometrics business and lower general and administrative expenses.
- The income from a patent arrangement of
$1.1 millionrelates to an agreement we entered into several years ago with an unaffiliated third party under which we assigned patents in return for royalties on proceeds from its patent monetization efforts. Based on information provided to us by the third party, we may receive additional income from this arrangement in the first quarter of 2013. We estimate that income could be in the range of $400,000 to $800,000depending on a variety of factors. Beyond the first quarter of 2013, we are unable to predict how much more income we might receive from this arrangement, if any, because we do not know whether any patent monetization efforts by the third party will be successful.
- The income tax benefit of
$3.1 millionin the fourth quarter of this year was primarily due to three unrelated factors: i) a $1.8 millionreversal of the valuation allowance we had established on our deferred tax assets in previous periods; ii) a determination, based on a project we completed in December 2012, that more of our research and development tax credits were available to reduce income tax expense than we previously estimated; and iii) the utilization of foreign tax credits that we had previously been unable to use.
For the year ended
Net income for the year ended
Additional information regarding full year 2012 results is as follows:
$1.0 millionimprovement in operating income before patent related income in 2012 was primarily due to increased profitability in our biometrics business and lower general and administrative expenses, which were partially offset by higher losses in our DSL service assurance software business.
- As we previously disclosed, we completed two significant patent sales in the second and third quarters of 2012. We received
$91.0 milliontotal proceeds on these patent sales, and recorded a net gain of $86.4 millionafter transaction costs.
- We completed the shutdown of our DSL service assurance hardware business in 2012 and recorded after tax income of
- We recorded a
$20.2 millionincome tax expense for 2012, but our actual income tax liability to federal and state governments was $7.8 million. The difference between our book tax expense and actual tax liability arises because a substantial portion of the deferred tax assets we used in 2012 comprised cumulative deductions for stock options in excess of book expense. Under income tax accounting rules, that portion of tax benefits attributable to such deductions must be recorded as an adjustment to equity versus a reduction of income tax expense.