NEW YORK, NY / ACCESSWIRE / March 23, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update note on Righstscorp, Inc. (RIHT) 4Q14 results.

Rightscorp, Inc. (RIHT) ("Rightscorp") is a leading provider of monetization services for artists and holders of copyrighted Intellectual Property ("IP"). The company reported 4Q14 earnings on March 10, 2015, which demonstrated continued growth both in revenue and the number of copyrights ingested over its system. We see Rightscorp as establishing itself as a recognized industry player with a differentiated solution focused on the detection of repeated copyright infringement activity for digitalized media. In our view, the company has the potential for rapid growth and increasing profits if it can achieve critical mass that leverages the high incremental margins inherent in its business model.

The report is available here: RIHT Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

Highlights from the quarter are as follows:

-Q14 completed a year of robust growth for Rightscorp. The company generated annual revenues of $930,729 in 2014, up 187% from 2013 revenues of $324,016.
- GAAP EPS came in at ($0.04), compared to ($0.03) in fiscal 2013 and in line with our estimates.
- Internet service providers (ISPs) participating in the company's patent infringement services increased by 466% to reach 233 ISPs, including industry leaders Google Fiber and Comcast - up from 50 ISPs in March 2014.
- Copyrights ingested into its system from 30,000 at the end of December 2013, to approximately 230,000 as of December 31, 2014 - an increase of 667% during the year.

Additional highlights from the report are as follows:

Powerful top line growth in 2014 for Rightscorp

Rightscorp ended a powerful year of growth by reporting 4Q14 revenues of $241,928, an increase of 56% from 4Q13 levels of $155,381. For the year, the company's top line grew by 187% to reach $930,729, versus our estimate of $1.4mn, up markedly from $324,016 in 2013. Earnings of ($0.05) were in line with our estimates.

Sound performance in core underlying operating metrics

As we indicated in our initiation report on Rightscorp, issued June 14, 2014, from our perspective, the key metrics to track for Rightscorp are 1) the number of ISPs cooperating with the company to stop repeat digital copyright infringement; and 2) the ingestion rate, or number or copyrights it has the authority to collect on. Rightscorp has increased its ISP participation by 466% since last March to reach 233 ISPs, and also grew the copyrights ingested into its system to approximately 230,000 - an increase of 667% during the year and up nearly threefold since we initiated on the company last June. As these metrics grow, Rightscorp will have access to a larger pool of copyright infringement activity to drive settlement revenues.

Long-term margin potential

We continue to like the potential for a network effect for the company if its solutions can become standard in the digital media industry. Illegal downloading is a massive industry, accounting for over 20% of all Internet traffic. We estimate that Rightscorp is targeting a potential annual opportunity of $2.3Bn if it represents 27mn copyrights and strikes agreements with all 3,000 ISPs working in the United States. With proprietary digital tools characterized by scalability and high incremental margins, Rightscorp has extremely high earnings potential if it can reach a critical mass of revenue and become the industry standard tools for digital copyright enforcement.

Maintaining price target of $0.89

We are adjusting 2015E estimates to revenue of $4mn and EPS of ($0.01). We maintain our price target of $0.89 for Rightscorp, which represents 709.1% upside potential from the recent market price of $0.11.

About Rightscorp, Inc.

Rightscorp (RIHT) is a leading provider of monetization services for artists and holders of copyrighted Intellectual Property (IP). The Company's patent pending digital loss prevention technology focuses on the infringement of digital content such as music, movies, software, books and games and ensures that owners and creators are rightfully paid for their IP. Rightscorp implements existing laws to solve copyright infringements by collecting payments from illegal file sharing activities via notifications sent through Internet Service Providers (ISPs). The Company's technology identifies copyright infringers, who are offered a reasonable settlement option when compared to the legal liability defined in the Digital Millennium Copyrights Act (DMCA). Based on the fact that 22% of all Internet traffic is used to distribute copyrighted content without permission or compensation to the creators, Rightscorp is pursuing an estimated $2.3 billion opportunity and has monetized major media titles through relationships with industry leaders. http://www.rightscorp.com/

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

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Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity