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FNJN: Finjan Reports Q1 2018 EPS and Has Started Paying Taxes

By Lisa Thompson


Last night Finjan (NASDAQ:FNJN) released its 10Q, which provided more information that what the company reported in its last conference call. Before it revealed its revenues and some other financial information, but did not report net income, EPS or information past the operating income line. Now we see that the company has gone from an untaxed entity to being fully taxed on a federal and state level. While we did know that the company had $42.3 million in operating income, what was not reported, was another $2.5 million in other expenses and $11.5 million in income taxes paid. These taxes were not paid in cash, but a cash payment will be due in June. After accretion for preferred of $925,000, net income to common shareholders for the quarter was $29.2 million or $0.93 per share on a fully diluted basis. This is compared with net income of $16 million and $0.69 per share in Q1 2017. In Q1 2018 the fully diluted share count was 30.3 million up 30% from a year ago.

Updating Forecasts

For 2018 we are reducing EPS estimates strictly due to Q1 results, the 28.3% tax rate and fully diluted shares of 30.3 million. Revenues stay the same. Based on that, we are lowering our EPS estimate for 2018 to $0.93 per share. In 2019 EPS is lowered to $0.80 per share.


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