Ukraine proposes $100 bln US weapons deal for security guarantees - FT
NEW YORK - Network-1 Technologies, Inc. (NYSE:NTIP), a small-cap technology company with a market capitalization of $28.9 million and an impressive 81.2% gross profit margin, has initiated patent litigation against Samsung Electronics Co., LTD and Samsung Electronics America, Inc. in the United States District Court for the Eastern District of Texas, according to a press release statement issued Monday. InvestingPro analysis suggests the stock is currently undervalued, while offering an attractive 8.62% dividend yield.
The lawsuit alleges Samsung infringed on six U.S. patents related to eSIM and 5G technologies in its mobile devices, including Galaxy smartphones, watches, and tablets. The patents in question are part of Network-1’s M2M/IoT patent portfolio acquired in December 2017. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet, supporting its ability to pursue such legal actions. [Subscribers can access 8 more exclusive InvestingPro Tips for NTIP.]
The disputed patents specifically relate to technologies for authenticating and using embedded Subscriber Identification Module (eSIM) technology in Internet of Things, Machine-to-Machine, and mobile devices. Some patents also cover enabling technologies for 5G network authentication.
Network-1’s M2M/IoT Patent Portfolio includes 41 issued U.S. patents, 6 pending applications, and 15 issued non-U.S. patents. The patent terms are expected to extend until 2033-2034.
The company cited data from the Trusted Connectivity Alliance indicating that 2024 was a significant growth year for the global eSIM ecosystem, with device shipments exceeding 500 million units and eSIM profile downloads increasing by 56%. This market growth comes as Network-1’s stock has experienced a 30.23% decline over the past year, though InvestingPro analysis indicates strong potential for value investors, with the company maintaining a healthy current ratio of 41.72.
Network-1 Technologies focuses on acquiring, developing, licensing, and protecting intellectual property. The company has previously generated over $188 million in licensing revenue from its Remote Power Patent and $47.15 million from its Mirror Worlds Patent Portfolio through March 31, 2025.
In other recent news, Network-1 Technologies has announced an extension of its share repurchase program, authorizing the buyback of up to $5 million of its common stock over the next two years. This decision was made by the company’s board of directors and is intended to utilize the company’s cash position effectively. The program allows the company to repurchase shares through open market transactions or privately negotiated deals, with the timing and amount dependent on market conditions. Since the program’s inception in August 2011, Network-1 has repurchased a total of 10,480,894 shares at an average price of $1.92 per share, amounting to an aggregate cost of $20,130,211. The board of directors believes that extending the program aligns with the best interests of the company and its shareholders. The company has emphasized that this move will not impact its ability to execute future plans.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.