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RPX Corp

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2018 10-Q, filed May 8, 2018. Its latest SEC filing is a SC 13G/A from Feb 13, 2019.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Provides patent-risk memberships and litigation insurance to companies, and legal discovery services to corporations and law firms.

How Did They Make Money?

Patent membership clients pay annual subscription fees, and policyholders pay insurance premiums; membership fees are generally collected at or near the start of the agreement and each anniversary. Discovery clients are billed monthly for delivered services, by usage or hours, or at a fixed monthly fee.

FY2017 revenue

Who Were Their Customers?

Patent-service members include technology companies and businesses that use technology; corporations and law firms use discovery services. RPX works with patent-service clients directly through its client-services team and web portal.

Did Revenues Turn Into Profits?

Not on paper. It lost $79.1M in FY2017, but brought in more cash than it spent: $180.2M of free cash flow.

Operating income, FY2017
−17% of revenue
▼ Now a loss vs FY2016 ($35.4M, 11%)
Net income, FY2017
−24% of revenue
▼ Now a loss vs FY2016 ($18.2M, 5%)
Free cash flow, FY2017
55% of revenue
▼ −2% vs FY2016 ($183.6M, 55%)

How Were They Changing?

Since the FY2017 annual report
Latest quarter: Q1 FY2018, the three months to Mar 31, 2018
Revenue
▼ −11%
vs $75.4M in Q1 FY2017
Net income
▼ −99%
vs $5.7M in Q1 FY2017
  • Jun 19, 2018 HGGC completed its acquisition of RPX RPX became a wholly owned subsidiary, and its NASDAQ trading was halted pending delisting.

Grew. Revenue grew 39% in 4 years, from $237.5M in FY2013 to $330.5M in FY2017, about 9% a year.

Added discovery services The earlier report centers on patent-risk management and insurance; the latest report also describes technology-enabled discovery services for corporations and law firms.

Who Did They Compete With?

Competes with Wi-LAN, Allied Security Trust, PanOptis, Epiq, KLDiscovery, Consilio, and FTI Consulting

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