Acacia Research Corp (NASDAQ:ACTG) Disappoints With Results

Posted by admin February 24, 2014 0 Comment 783 views

Acacia Research Corp (NASDAQ:ACTG) reported its 4th quarter and full year 2013 operation results on 21st February. The disappointing results led to a big dip in the investor confidence in the stock leading to a 6.3 percent dip in its market valuation during trading on 21st February.

4Q Revenue Dip Disappoints

The disappointment stemmed from the fact that, the revenues from operations for the 4Q13 was down 77 percent at $15.06 million in comparison to $66 million in 4Q12. Due to the big drop in revenue, the net loss came in at $33.3 million (GAAP) while its loss per share was up to 69 cents. On the positive side of the business, was the fact that the firm was able to take full control of 3 new patents.

FY13 Loss Up In Comparison to FY12

For the full year operations, the revenue was down to $130 million, which was more than 48 percent down from its FY12 revenue. Net loss was $56.4 million, which translated to loss per share of $1.18 and managed to acquire close to 25 new patents in the same time period.

Silver Lining

Explaining the drop in revenue, while painting a bright picture going forward to stem the loss of investor confidence in the stock, Acacia Research Corp (NASDAQ:ACTG) President, Chief Executive Officer, Director Matthew Vella has been quoted to have said that, “we remain financially strong with over $250 million in cash and no debt. We have evolved into a company that will be even more determined to get the right prices for licenses under its own, under its customers, patent portfolios. It will be more patient even if it means enduring a temporary revenue trough to get to those right prices”. He also went on to highlight that they have actively pursued a strategy of concentrating on fulfilling required of a chosen few, but high value customers.

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