Finjan Holdings, Inc. (NASDAQ:FNJN) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 04:30 pm ET


Finjan Holdings, Inc. (NASDAQ:FNJN) Q1 2019 Earnings Conference Call Transcript


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Good day, everyone, and welcome to the Finjan Holdings Inc. Shareholder Update Call. All participants are in listen-only mode. Later you will have the opportunity to ask questions during the question-and-answer session. (Operator Instructions) Please keep in mind today's conference is being recorded, and I will be standing by should you need any assistance.

It is now my pleasure to turn today's program over to Vanessa Winter, Investor Relations. Please go ahead.

Vanessa Winter

Thank you, Miranda. Hello, everyone, and thank you for joining us this afternoon for our shareholder update conference call. Joining me on today's call are Phil Hartstein, Finjan's President and Chief Executive Officer, and Michael Noonan, Chief Financial Officer. As a reminder, this call is being webcast, and a replay of the webcast will be available on our website.

Turning to our safe harbor. During the course of this call, we may make statements related to our overall business outlook, future financial operating results, outcomes of pending and future litigation, accounting matters and future prospects of our operating subsidiaries. These are forward-looking statements based on certain assumptions and are subject to a number of risks and uncertainties that could cause future results to differ materially from our expectations. You can learn more about these risks in our most recent filings with the SEC. These documents are available on the Investor Relations page of our website at We assume no obligation to update any forward-looking statements.

I'd also like to mention that Finjan management will be presenting at the B. Riley FBR Conference on May 22 and the LD Micro Conference on June 4, both in Los Angeles, where we hope we get the opportunity to touch base with many of you in person.

With that, I'd like to turn the call over to Phil Hartstein, Finjan's President and CEO. Phil?

Philip Hartstein

Good afternoon, and thank you for joining our call today. Given we just reported our year-end result two months ago, we plan to keep this update brief. And we've been encouraged with our momentum year-to-date with the recent settlement, more good news from the USPTO and PTAB and with recent orders in our various district court action. As we confirmed this morning, we have no new licenses or settlements that closed in the first quarter, but we did recently settled our year-long litigation with Zscaler. While the terms of that deal are confidential, reaching settlements outside of court is always our preferred course of action.

We appreciate when companies like Zscaler engaged constructively in negotiation where parties are able to arrive at a fair value license. We're optimistic this will initiate a renewed cadence in our licensing program. Last quarter, I referenced three themes which shaped the direction of our business during 2018. To review them quickly for you, the first theme was the variable of time and how managing time lines in licensing and enforcement will always be challenging in our business. Our estimations have improved over the last few years, but we still experience the occasional,