Acacia Research Corporation(1) (Nasdaq: ACTG) today reported
results for the three months and year ended December 31,
2014.
Fourth Quarter 2014 Results
- Revenues were $31,030,000, as compared
to $15,065,000 in the comparable prior year quarter.
- GAAP net loss was $16,244,000, or $0.34
per diluted share, as compared to a GAAP net loss of $33,333,000,
or $0.69 per diluted share for the comparable prior year
quarter.
- Non-GAAP net income was $1,576,000, or
$0.03 per diluted share, as compared to a non-GAAP net loss of
$10,556,000, or $0.22 per diluted share for the comparable prior
year quarter. See below for information regarding non-GAAP
measures.
- During the fourth quarter of 2014 we
acquired control of 2 new patent portfolios.
- Cash and cash equivalents and
investments totaled $193,024,000 as of December 31, 2014.
Fiscal Year 2014 Results
- Revenues were $130,876,000, as compared
to revenues of $130,556,000 in the comparable prior year.
- GAAP net loss was $66,029,000, or $1.37
per diluted share, as compared to a GAAP net loss of
$56,434,000, or $1.18 per diluted share for the comparable prior
year.
- Non-GAAP net income was $9,328,000, or
$0.18 per diluted share, as compared to a non-GAAP net loss of
$1,424,000, or $0.04 per diluted share for the comparable prior
year. See below for information regarding non-GAAP measures.
- During fiscal year 2014 we acquired
control of 6 new patent portfolios.
Approval of Quarterly Dividend
Acacia Research Corporation also announced today that its Board
of Directors has approved a quarterly cash dividend, payable in the
amount of $0.125 per share, which will be paid on March 30, 2015,
to shareholders of record at the close of business on March 2,
2015. Future cash dividends are expected to be paid on a quarterly
basis and will be at the discretion of the Board of Directors.
Consolidated Financial Results - Overview
Financial results and operating activities
during the periods presented included the following:
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013 2014
2013
Revenues (in thousands) $ 31,030 $ 15,065 $ 130,876 $ 130,556 Net
loss (in thousands) $ (16,244 ) $ (33,333 ) $ (66,029 ) $ (56,434 )
Non-GAAP net income (loss) (in thousands) $ 1,576 $ (10,556 ) $
9,328 $ (1,424 ) Diluted loss per share $ (0.34 ) $ (0.69 ) $ (1.37
) $ (1.18 ) Pro forma non-GAAP net earnings (loss) per common share
- diluted $ 0.03 $ (0.22 ) $ 0.18 $ (0.04 ) New agreements executed
33 24 88 120 Licensing and enforcement programs generating revenues
27 23 46 53 Licensing and enforcement programs with initial
revenues 5 4 15 23 New patent portfolios 2 3 6 25
Summary Financial Results
For the Three Months and Fiscal Years Ended December 31, 2014
and 2013
Revenues:
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013
2014 2013
Revenues (in thousands) $ 31,030 $ 15,065 $ 130,876 $ 130,556
New agreements executed 33 24 88 120 Licensing and
enforcement programs generating revenues 27 23 46 53 Licensing and
enforcement programs with initial revenues 5 4 15 23
Fourth Quarter 2014 compared to Fourth Quarter 2013. Revenues in
the fourth quarter of 2014 increased $15,965,000, or 106%, to
$31,030,000, as compared to $15,065,000 in the comparable prior
year quarter. In the fourth quarter of 2014, three licensees
individually accounted for 35%, 19% and 10% of revenues recognized,
as compared to two licensees individually accounting for 35%
and 11% of revenues recognized during the fourth quarter of
2013.
Fiscal Year 2014 compared to Fiscal Year 2013. Fiscal year 2014
revenues were $130,876,000, relatively consistent with fiscal year
2013 revenues of $130,556,000. In fiscal year 2014,
two licensees each individually accounted for 22% of revenues
recognized, as compared to two licensees individually
accounting for 38% and 16% of revenues recognized in fiscal year
2013.
Cost of Revenues (in thousands):
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013 2014
2013 Inventor royalties $ 4,358
$ 3,280 $ 20,670 $ 29,724 Contingent legal fees 7,296 3,181
23,563 24,784
Fourth quarter 2014 revenues, less inventor royalties expense
and contingent legal fees expense totaled $19,376,000, or 62% of
related quarterly revenues, as compared to $8,604,000, or 57% of
quarterly revenues, in the comparable prior year quarter.
Fiscal year 2014 revenues, less inventor royalties expense and
contingent legal fees expense totaled $86,643,000, or 66% of
related fiscal year 2014 revenues, as compared to $76,048,000, or
58% of related fiscal year 2013 revenues.
The increase in fourth quarter and fiscal year 2014 revenues,
less related inventor royalties and contingent legal fees expense,
as a percentage of related quarterly and annual revenues,
respectively, was primarily due to, on average, a higher percentage
of revenues generated in the fourth quarter and fiscal year 2014
having no inventor royalty obligations, and lower overall inventor
royalty rates, primarily due to preferential returns on advances
and cost recoveries, for the portfolios generating revenues during
the 2014 periods, as compared to the revenues generated in the 2013
periods. Inventor royalties and contingent legal fees expenses
fluctuate period to period, based on the amount of revenues
recognized each period and the economic terms of the patent
portfolio partnering arrangements and contingent legal fee
arrangements, if any, associated with the specific patent
portfolios generating revenues each period.
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013
2014 2013
Litigation and licensing expenses - patents $ 8,208 $ 8,899
$ 37,614 $ 39,335
Fourth quarter 2014 and 2013 litigation and licensing
expenses-patents were relatively flat quarter to quarter. Fiscal
year 2014 litigation and licensing expenses-patents decreased due
primarily to a net decrease in litigation support and third-party
technical consulting expenses associated with ongoing and new
licensing and enforcement programs commenced during fiscal year
2014. We expect litigation and licensing expenses to continue to
fluctuate period to period in connection with our current and
future patent partnering, prosecution, licensing and enforcement
activities.
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013
2014 2013 Amortization of
patents $ 13,727 $ 16,735 $ 57,242 $ 53,658
The change in patent amortization expense for the periods
presented was due to the following:
Three Months EndedDecember
31,
Year EndedDecember 31,
2014 vs. 2013 2014 vs. 2013 Patent portfolio
investments since the end of the prior year period $ 920 $ 2,534
Scheduled amortization related to patent portfolios acquired during
the prior year (301 ) 562 Accelerated amortization related to
recovery of upfront advances 60 655 Patent portfolio dispositions —
955 Patent portfolio impairment charges (3,687 ) (1,122 ) Total
change in patent amortization expense $ (3,008 ) $ 3,584
Other Operating Expenses (in thousands):
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013
2014 2013 Marketing,
general and administrative expenses $ 7,951 $ 6,906 $ 30,439
$ 31,335
Non-cash stock compensation expense -
MG&A
4,093 7,082 18,115 27,894 Total
marketing, general and administrative expenses $ 12,044 $
13,988 $ 48,554 $ 59,229
Fourth quarter 2014 marketing, general and administrative
expenses, excluding non-cash stock compensation expense, increased
$1,045,000 or 15%, due primarily to an increase in variable
performance-based compensation costs, consistent with the increase
in revenues quarter to quarter, and an increase in non-recurring
employee severance and corporate administrative costs. The increase
was partially offset by an overall decrease in personnel costs
resulting from net staff reductions occurring during the year.
Fiscal year 2014 marketing, general and administrative expenses,
excluding non-cash stock compensation expense, decreased $896,000
or 3%, due primarily to a net decrease in personnel costs resulting
from net staff reductions occurring during fiscal 2014.
Fourth quarter and fiscal year 2014 non-cash stock compensation
expense decreased due to a decrease in the average grant date fair
value for the shares expensed in the respective periods, and a
decrease in the number of shares expensed during the periods
resulting from a net reduction in employee headcount and a decrease
in the number of shares vesting for current employees. Fiscal year
2013 non-cash stock compensation expense included CEO retirement
package related non-recurring non-cash charges totaling
$1,823,000.
Other Operating Expenses:
Fiscal year 2014 operating expenses included an expense accrual
for court ordered attorney fees related to separate matters
initiated in 2010 and 2011 totaling $1,548,000. The respective
operating subsidiaries have filed notices of appeal. Fiscal year
2013 operating expenses included a one-time, non-recurring charge
related to the resolution of a dispute concerning legal fees
associated with a prior matter totaling $3,506,000.
Income Taxes:
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013
2014 2013
(Provision for) benefit from income taxes (in thousands) $ (450 ) $
(3,390 ) $ (3,912 ) $ 21,958 Effective tax rate 3 % 11 % 6 % (27 )%
Tax expense for the fourth quarter and fiscal year 2014 reflects
the impact of a full valuation allowance recorded for net operating
loss and foreign tax credit related tax assets generated during the
periods. As such, no tax benefit was recognized for net operating
loss and foreign tax credit related tax benefits generated during
the 2014 periods. Tax expense for the fourth quarter and fiscal
year 2014 primarily reflects foreign taxes withheld on revenue
agreements with licensees in foreign jurisdictions and other state
taxes.
The tax benefit recognized for fiscal 2013 reflects the
application of an annual effective tax rate to the GAAP pre-tax net
loss reported for fiscal 2013. The fiscal year 2013 effective tax
rate was lower than the U.S. federal statutory rate primarily due
to a partial increase in the valuation allowance related to certain
foreign tax credits generated in 2013 and certain nondeductible
expenses.
Financial Condition (in thousands)
Summary Balance Sheet Information:
December 31, 2014
December 31, 2013 Cash and cash equivalents
and investments $ 193,024 $ 256,702 Accounts receivable 20,168
6,341 Total assets 536,348 593,393 Accounts payable and accrued
expenses 14,860 11,555 Accrued patent portfolio investment costs
16,700 4,000 Royalties and contingent legal fees payable 14,351
10,447 Total liabilities 47,300 31,195
Summary Cash Flow Information:
Three Months EndedDecember
31,
Year Ended December 31,
2014 2013
2014 2013 Net cash
provided by (used in): Operating activities $ (9,706 ) $ 1,310 $
4,184 $ (3,509 ) Investing activities (3,827 ) 22,076 29,297
(66,059 ) Financing activities (6,258 ) (15,004 ) (25,700 ) (25,551
)
Patent Portfolio Investment Costs. Patent related upfront
advances and scheduled milestone payments paid in the fourth
quarter of 2014 totaled $18,228,000, as compared to $14,645,000
during the comparable prior year quarter.
Patent related upfront advances and scheduled milestone payments
paid in fiscal year 2014 totaled $42,746,000, as compared to
$25,061,000 in fiscal year 2013. Accrued patent portfolio
investment costs totaled $16,700,000 at December 31, 2014.
Quarterly Dividends Paid. Cash outflows from financing
activities included cash dividends to shareholders totaling
$6,266,000 and $25,039,000 for the fourth quarter and fiscal year
ended December 31, 2014, respectively. Refer to our website for IRS
Form 8937 information related to the distribution announced herein
and any previous distributions.
See “Business Highlights and Recent Developments” below for a
summary of patent portfolio investments during the current
quarter.
Refer to the section below entitled “Summary Financial
Information” for additional summary consolidated balance sheet,
statements of operations and cash flow information as of and for
the applicable periods presented.
INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES
As used herein, “GAAP” refers to accounting principles generally
accepted in the United States of America. To supplement our
consolidated financial statements prepared and presented in
accordance with GAAP, this earnings release includes financial
measures, including (1) non-GAAP net income and (2) non-GAAP
Earnings Per Share (“EPS”), that are considered non-GAAP financial
measures as defined in Rule 101 of Regulation G promulgated by the
Securities and Exchange Commission. Generally, a non-GAAP financial
measure is a numerical measure of a company’s historical or future
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. The presentation of this non-GAAP financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP.
We use these non-GAAP, or pro forma, financial measures for
internal financial and operational decision making purposes and as
a means to evaluate period-to-period comparisons of the performance
and results of operations of our core business. Our management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding the performance of our core
business by excluding non-cash stock compensation charges, non-cash
patent amortization charges, excess benefit related non-cash tax
expense and certain non-cash tax benefits, that may not be
indicative of our recurring core business operating results. These
non-GAAP financial measures also facilitate management’s internal
planning and comparisons to our historical performance and
liquidity. We believe these non-GAAP financial measures are useful
to investors as they allow for greater transparency with respect to
key metrics used by management in its financial and operational
decision making and are used by our institutional investors and the
analyst community to help them analyze the performance and
operational results of our core business.
Non-GAAP Net income and EPS. We define non-GAAP net income
as net income calculated in accordance with GAAP, plus non-cash
stock compensation charges, non-cash patent amortization charges
and excess benefit related non-cash tax expense, less certain
non-cash tax benefits included in tax expense. Non-GAAP EPS is
defined as non-GAAP net income divided by the weighted average
outstanding shares, on a fully-diluted basis, calculated in
accordance with GAAP, for the respective reporting period.
Due to the inherent volatility in stock prices, the use of
estimates and assumptions in connection with the valuation and
expensing of share-based awards and the variety of award types that
companies can issue under FASB ASC Topic 718, management believes
that providing a non-GAAP financial measure that excludes non-cash
stock compensation allows investors to make meaningful comparisons
between our recurring core business operating results and those of
other companies period to period, as well as providing our
management with a critical tool for financial and operational
decision making and for evaluating our own period-to-period
recurring core business operating results. Similarly, due to the
variability associated with the timing and amount of patent
portfolio investment payments and estimates inherent in the
capitalization and amortization of patent costs, management
believes that providing a non-GAAP financial measure that excludes
non-cash patent amortization charges allows investors to make
meaningful comparisons between our recurring core business
operating results and those of other companies, and also provides
our management with a useful tool for financial and operational
decision making and for evaluating our own period-to-period
recurring core business operating results. Management also believes
that providing a non-GAAP financial measure that excludes the
impact of excess benefit related non-cash tax expense and certain
non-cash tax benefits included in tax expense allows investors to
assess our net results and the economic impact of income taxes
based largely on cash tax obligations, make more meaningful
comparisons between our recurring core business net results and
those of other companies period to period, and also provides our
management with a useful tool for financial and operational
decision making and for evaluating our own period-to-period
recurring core business net results.
There are a number of limitations related to the use of non-GAAP
net income and EPS versus net income and EPS calculated in
accordance with GAAP. For example, non-GAAP net income excludes the
impact of significant non-cash stock compensation charges, non-cash
patent amortization charges, excess benefit related non-cash tax
expense and certain non-cash tax benefits included in tax expense
that are or may be recurring, and that may or will continue to be
recurring for the foreseeable future. In addition, non-cash stock
compensation is a critical component of our employee compensation
programs and non-cash patent amortization reflects the cost of
certain patent portfolio investments, amortized on a straight-line
basis over the estimated economic useful life of the respective
patent portfolio, and may reflect the acceleration of amortization
related to recoupable up-front patent portfolio costs. Management
compensates for these limitations by providing specific information
regarding the GAAP amounts excluded from non-GAAP net income and
EPS and evaluating non-GAAP net income and EPS in conjunction with
net income and EPS calculated in accordance with GAAP.
The accompanying table below provides a reconciliation of the
non-GAAP financial measures presented to the most directly
comparable financial measures prepared in accordance with GAAP.
_____________________________________________
A conference call is scheduled for today. The Acacia Research
presentation and Q&A will start at 1:30 p.m. Pacific Time (4:30
p.m. Eastern).
To listen to the presentation by phone, dial (888) 299-7205 for
domestic callers and (719) 325-2301 for international callers, both
of whom will need to enter the conference ID 7520198 when prompted.
A replay of the audio presentation will be available for 30 days at
(888) 203-1112 for domestic callers and (719) 457-0820 for
international callers, both of whom will need to enter the
Conference ID 7520198 when prompted.
The call is being webcast by CCBN and can be accessed at
Acacia’s website at www.acaciaresearch.com.
ABOUT ACACIA RESEARCH CORPORATION
Founded in 1993, Acacia Research Corporation (NASDAQ: ACTG) is
the industry leader in patent licensing. An intermediary in the
patent marketplace, Acacia partners with inventors and patent
owners to unlock the financial value in their patented inventions.
Acacia bridges the gap between invention and application,
facilitating efficiency and delivering monetary rewards to the
patent owner.
Information about Acacia Research Corporation and its
subsidiaries is available at www.acaciaresearch.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This news release contains forward-looking statements within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based upon our
current expectations and speak only as of the date hereof. Our
actual results may differ materially and adversely from those
expressed in any forward-looking statements as a result of various
factors and uncertainties, including the effect of the global
economic downturn on technology companies, the ability to
successfully develop licensing programs and attract new business,
rapid technological change in relevant markets, changes in demand
for current and future intellectual property rights, legislative,
regulatory and competitive developments addressing licensing and
enforcement of patents and/or intellectual property in general and
general economic conditions. Our Annual Report on Form 10-K, recent
and forthcoming Quarterly Reports on Form 10-Q, recent Current
Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some
of the important risk factors that may affect our business, results
of operations and financial condition. We undertake no obligation
to revise or update publicly any forward-looking statements for any
reason.
The results achieved in the most recent quarter are not
necessarily indicative of the results to be achieved by us in any
subsequent quarters, as it is currently anticipated that Acacia
Research Corporation’s financial results will vary, and may vary
significantly, from quarter to quarter. This variance is expected
to result from a number of factors, including risk factors
affecting our results of operations and financial condition
referenced above, and the particular structure of our licensing
transactions, which may impact the amount of inventor royalties and
contingent legal fees expenses we incur period to period.
ACACIA RESEARCH CORPORATION
SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per
share information)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended December
31,
Year Ended December 31,
2014 2013
2014 2013
Revenues $ 31,030 $ 15,065 $ 130,876 $ 130,556
Operating costs and expenses: Cost of revenues: Inventor
royalties 4,358 3,280 20,670 29,724 Contingent legal fees 7,296
3,181 23,563 24,784 Litigation and licensing expenses - patents
8,208 8,899 37,614 39,335 Amortization of patents 13,727 16,735
57,242 53,658 Marketing, general and administrative expenses
(including non-cash stock compensation expense of $4,093 and
$18,115 for the three months and year ended December 31, 2014,
respectively, and $7,082 and $27,894 for the three months and year
ended December 31, 2013, respectively) 12,044 13,988 48,554 59,229
Research, consulting and other expenses - business development 637
742 3,840 3,251 Other — — 1,548 3,506
Total operating costs and expenses 46,270 46,825
193,031 213,487 Operating loss (15,240 ) (31,760 )
(62,155 ) (82,931 ) Total other income (expense) (451 ) 161
(595 ) 2,131 Loss from operations before (provision
for) benefit from income taxes (15,691 ) (31,599 ) (62,750 )
(80,800 ) (Provision for) benefit from income taxes (450 ) (3,390 )
(3,912 ) 21,958 Net loss including noncontrolling interests
in operating subsidiaries (16,141 ) (34,989 ) (66,662 ) (58,842 )
Net (income) loss attributable to noncontrolling interests in
operating subsidiaries (103 ) 1,656 633 2,408
Net loss attributable to Acacia Research Corporation $ (16,244 ) $
(33,333 ) $ (66,029 ) $ (56,434 ) Net loss attributable to
common stockholders - diluted $ (16,399 ) $ (33,517 ) $ (66,755 ) $
(56,945 ) Diluted loss per common share $ (0.34 ) $ (0.69 )
$ (1.37 ) $ (1.18 ) Weighted average number of shares
outstanding, diluted 48,944,914 48,415,684 48,658,088
48,155,832
Reconciliation of GAAP Net Loss and EPS
to Non-GAAP Net Income (Loss) and EPS
(In thousands, except share and per
share data)
Three Months Ended December
31,
Year Ended December 31,
2014 2013
2014 2013
GAAP net loss $ (16,244 ) $ (33,333 ) $ (66,029 ) $ (56,434
) Non-cash stock compensation 4,093 7,082 18,115 27,894
Non-cash patent amortization 13,727 16,735 57,242 53,658 Non-cash
tax benefits — (1,040 ) — (26,542 ) Pro
forma non-GAAP net income (loss) $ 1,576 $ (10,556 ) $ 9,328
$ (1,424 )
Pro forma non-GAAP net income (loss)
attributable to common stockholders - diluted
$
1,530
$
(10,740
)
$
9,020
$
(1,935
)
Pro forma non-GAAP net earnings (loss) per
common share — diluted
$ 0.03 $ (0.22 ) $ 0.18 $ (0.04 ) GAAP
weighted-average shares — diluted 49,079,030 48,415,684
48,785,441 48,155,832
ACACIA RESEARCH CORPORATION
SUMMARY FINANCIAL INFORMATION,
(CONTINUED)
(In thousands)
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET
INFORMATION
December 31, 2014
December 31,2013
ASSETS Current assets: Cash and cash equivalents $ 134,466 $
126,685 Short-term investments 58,558 130,017 Accounts receivable
20,168 6,341 Deferred income tax 1,161 3,139 Prepaid expenses and
other current assets 4,355 7,546 Total current assets
218,708 273,728 Property and equipment, net of accumulated
depreciation and amortization 500 766 Patents, net of accumulated
amortization 286,636 288,432 Goodwill 30,149 30,149 Other assets
355 318 $ 536,348 $ 593,393
LIABILITIES AND
STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and
accrued expenses $ 14,860 $ 11,555
Accrued patent investment costs
16,700 4,000 Royalties and contingent legal fees payable 14,351
10,447 Total current liabilities 45,911 26,002
Deferred income taxes 1,161 4,874 Other liabilities 228 319
Total liabilities 47,300 31,195 Total stockholders’ equity 489,048
562,198 $ 536,348 $ 593,393
ACACIA RESEARCH CORPORATION
SUMMARY FINANCIAL INFORMATION,
(CONTINUED)
(In thousands)
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Three Months EndedDecember
31,
Year Ended December 31,
2014
2013
2014
2013
Cash flows from operating activities: Net loss including
noncontrolling interests in operating subsidiaries $ (16,141 ) $
(34,989 ) $ (66,662 ) $ (58,842 ) Adjustments to reconcile net loss
including noncontrolling interests in operating subsidiaries to net
cash provided by (used in) operating activities: Depreciation and
amortization 13,793 16,809 57,546 53,894 Non-cash stock
compensation 4,093 7,082 18,115 27,894 Excess tax benefits from
stock-based compensation — 1,040 — 1,398 Change in valuation
allowance on net deferred tax assets — 2,189 — 2,189 Other (4 ) 34
(28 ) 12 Changes in assets and liabilities: Accounts receivable
(7,466 ) 10,471 (13,827 ) 3,502 Prepaid expenses and other assets
1,435 566 3,154 (5,300 ) Accounts payable and accrued expenses
(1,786 ) (5,798 ) 3,717 1,076 Royalties and contingent legal fees
payable (3,426 ) 2,134 3,904 (2,061 ) Deferred taxes, net (204 )
1,772 (1,735 ) (27,271 ) Net cash provided by (used
in) operating activities (9,706 ) 1,310 4,184 (3,509
) Cash flows from investing activities: Purchases of
property and equipment (3 ) (96 ) (109 ) (675 ) Purchase of
available-for-sale investments (33,833 ) (46,884 ) (109,963 )
(279,693 ) Maturities and sales of available-for-sale investments
48,237 83,701 182,115 239,370 Investments in patents / patent
rights (18,228 ) (14,645 ) (42,746 ) (25,061 ) Net cash
provided by (used in) investing activities (3,827 ) 22,076
29,297 (66,059 ) Cash flows from financing
activities: Repurchases of common stock — (7,908 ) — (7,926 )
Dividends paid to shareholders (6,266 ) (6,241 ) (25,039 ) (18,633
) Distributions to noncontrolling interests in operating subsidiary
— — (867 ) — Contributions from noncontrolling interests in
operating subsidiary — — — 1,920 Excess tax benefits from
stock-based compensation — (1,040 ) — (1,398 ) Proceeds from
exercises of stock options 8 185 206 486
Net cash used in financing activities (6,258 )
(15,004 ) (25,700 ) (25,551 ) Increase (decrease) in cash
and cash equivalents (19,791 ) 8,382 7,781 (95,119 ) Cash
and cash equivalents, beginning 154,257 118,303
126,685 221,804 Cash and cash equivalents,
ending $ 134,466 $ 126,685 $ 134,466 $ 126,685
Business Highlights and Recent
Developments(2)
Business highlights of the fourth quarter of 2014 and recent
developments include the following:
Revenues for the three months ended December 31, 2014 included
fees from the following technology licensing and enforcement
programs:
• 3G & 4G Cellular Air Interface and Infrastructure technology
• Mobile Computer Synchronization technology •
4G Wireless technology • Oil and Gas Production technology(1) •
Audio Communications Fraud Detection technology • Online Auction
Guarantee technology • Automotive Safety, Navigation and
Diagnostics technology • Online newsletters with links technology •
Broadband Communications technology • Optical Networking technology
• Cardiology and Vascular Device technology(1) • Optimized
Microprocessor Operation technology(1) • Distributed Data
Management & Synchronization technology(1) • Reflective and
Radiant Barrier Insulation technology • Enhanced Mobile
Communications technology • Super Resolutions Microscopy technology
• Gas Modulation Control Systems technology • Suture Anchors
technology • High Speed Circuit Interconnect and Display Control
technology(1) • Telematics technology • Innovative Display
technology • Voice-Over-IP technology • Intercarrier SMS technology
• Wireless Infrastructure and User Equipment technology •
Interstitial and Pop-Up Internet Advertising technology • Wireless
Monitoring technology • Messaging technology
_______________________
(*) Initial license fees were recorded for these
licensing programs in the fourth quarter of 2014.
- Acacia Research Corporation resolved
the dispute initiated by Microsoft Corporation in the United States
District Court for the Southern District of New York, Civil Action
No. 1:13-cv-08275.The following actions brought by Acacia
subsidiaries were also resolved as they relate to Microsoft:
Intercarrier Communications LLC v. Microsoft Corp., et al., Case
No. 1:13-cv-01639-GMS (D. Del.); Optimum Content Protection LLC v.
Microsoft Corp., Case No. 6:13-cv-00741-KNM (E.D. Tex.); Internet
Communications Solutions LLC v. Microsoft Corp., Skype Inc, and
Skype Communications SARL, Case No. 2:14-cv-00189-JRG (E.D. Tex.);
Cell and Network Selection LLC v. BlackBerry Corp. et al, Case No.
6:13-cv-00563-KNM (E.D. Tex.); Mobile Enhancement Solutions LLC v.
Microsoft Mobile Oy & Nokia Inc, Case No. 3:13-cv-03977-MGL
(N.D. Tex.); Super Interconnect Technologies v. Microsoft Mobile Oy
& Nokia Inc, Case No. 6:13-cv-00739-KNM (E.D. Tex.), Case No.
3:14-cv-2293-H-BGS (S.D. Cal.).In addition, the action entitled
Cellular Communications Equipment LLC v. HTC Corp., et al., Case
No. 6:13-cv-00738-LED/ 6:13-cv-00507-LED (E.D. Tex.) was dismissed
with respect to Microsoft without prejudice.
- ADAPTIX, Inc. entered into a settlement
and patent license agreement with Huawei Technologies Co., Ltd. for
limited rights on user equipment. The agreement resolved litigation
that was pending in the United States District Court for the
Eastern District of Texas and litigation that was pending in Tokyo
District Court asserting patent infringement by certain Huawei user
equipment.
- Adaptix, Inc. entered into a settlement
and patent license agreement with NEC Corporation and its
subsidiaries for certain limited rights to the Adaptix patent
portfolio. This agreement resolved litigation that was pending in
the United States District Court for the Eastern District of
Texas.
- Auto-Dimensions LLC and Dassault
Systems SolidWorks Corporation resolved the dispute between the
parties that was pending in the United States District Court for
the District of Massachusetts, Civil Action No. 1:13-cv-12747.
- Body Science LLC entered into a
settlement agreement with A&D Engineering, Inc. regarding
wireless medical diagnostic and monitoring systems. The agreement
resolved litigation that was pending in the United States District
Court for the District of Massachusetts.
- Bonutti Skeletal Innovations LLC
entered into a settlement and patent license agreement with DePuy
Mitek LLC. The agreement resolved litigation that was pending in
the United States District Court for the District of
Massachusetts.
- Bonutti Skeletal Innovations LLC
entered into a settlement and patent license agreement with
ConforMIS, Inc. The agreement resolved all aspects of the
litigation for the United States District Court for the District of
Delaware and the United States District Court for the District of
Massachusetts.
- Brandywine Communications Technologies
LLC entered into a royalty-bearing patent license agreement with
Gutierrez-Palmenberg, Inc. dba Phoenix Internet.
- Brandywine Communications Technologies
LLC entered into a settlement and patent license agreement with
MegaPath Corporation. The agreement resolved litigation that was
pending in the United States District Court for the District of
Delaware.
- Cell and Network Selection LLC and SOTA
Semiconductor LLC entered into an agreement with RPX
Corporation.
- Cell and Network Selection LLC entered
into a limited rights patent license agreement with NEC Corporation
and its subsidiaries.
- Cell and Network Selection LLC and
AT&T Mobility LLC reached a settlement that resolved the
dispute between the parties currently pending in the United States
District Court for the Eastern District of Texas, Civil Action No.
6:13-cv-00403.
- Cellular Communications Equipment LLC
entered into a settlement and limited rights patent license
agreement with NEC Corporation and its subsidiaries. The agreement
resolved litigation that was pending in the United States District
Court for the Eastern District of Texas.
- Credit Card Fraud Control Corporation
entered into a settlement and patent license agreement with TCSP
Inc. dba TrustCommerce. The agreement resolved litigation that was
pending in the United States District Court for the Northern
District of Texas.
- Credit Card Fraud Control Corporation
entered into a settlement and license agreement with Chase
Paymentech Solutions, LLC. The agreement resolved patent
litigation, Civil Action No. 3:14-cv-2671, pending in the United
States District Court for the Northern District of Texas, Dallas
Division.
- Credit Card Fraud Control Corporation
entered into a settlement and license agreement with First Data
Corporation. This agreement resolved patent litigation, Civil
Action No. 3:14-cv-2619, pending in the United States District
Court for the Northern District of Texas, Dallas Division.
- Database Sync Solutions LLC entered
into a settlement and patent license agreement with International
Business Machines Corporation. The agreement resolved litigation
that was pending in the United States District Court for the
Eastern District of Texas.
- Innovative Display Technologies LLC and
Delaware Display Group LLC entered into a settlement and patent
license agreement with HTC Corporation and HTC America, Inc. The
agreement resolved litigation that was pending in the United States
District Court for the District of Delaware.
- Labyrinth Optical Technologies LLC,
Ciena Communications, Inc. and Ciena Corporation have reached a
settlement that resolved the dispute between the parties currently
pending in the United States District Court for the Central
District of California, Civil Action No. 8:12-cv-02217.
- LifeScreen Sciences LLC entered into a
settlement and patent license agreement with Cordis Corporation.
The agreement resolved litigation that was pending in the United
States District Court for the Eastern District of Texas.
- Online News Link LLC entered into a
settlement with Epsilon Data Management, LLC. The agreement
resolved litigation that was pending in the United States District
Court for the Northern District of Texas, Dallas Division.
- Parallel Separation Innovations LLC
entered into a Settlement and Release Agreement with Axiom Process,
LLC and Axiom Process Ltd. The agreement resolved litigation that
was pending in the United States District Court for the Eastern
District of Texas.
- Smartphone Technologies LLC, ASUSTeK
Computer Inc., and ASUS Computer International reached a settlement
that resolved the dispute between the parties currently pending in
the United States District Court for the Eastern District of Texas,
Civil Action Nos. 6:13-cv-807 and 6:14-cv-803.
- Super Resolution Technologies LLC and
Carl Zeiss Microscopy, LLC and Carl Zeiss Microscopy, GmbH reached
a resolution of their dispute over the Fluorescent Nanoscopy
patents. The agreement resolved litigation that was pending in the
United States District Court for the Southern District of
Texas.
- Unified Messaging Solutions LLC entered
into a settlement and patent license agreement with Huntington
Bancshares, Inc. The agreement resolved litigation that was pending
in the United States District Court for the Northern District of
Illinois.
- Unified Messaging Solutions LLC entered
into a settlement and patent license agreement with The Vanguard
Group, Inc. and Vanguard Marketing Corporation. The agreement
resolved litigation that was pending in the United States District
Court for the Southern District of New York.
- Acacia Research Group LLC and its
affiliates continued their patent and patent rights investment
activities, investing in a total of 2 new patent portfolios in the
fourth quarter of 2014, including the following:
- In December 2014, sourced rights in
additional patent portfolios from Nokia Networks. With these new
portfolios, Acacia’s subsidiary now controls marquee portfolios
relating to 2G/3G/LTE and LTE-Advanced technologies.
_______________________
(1) As used herein, “Acacia Research Corporation,” “we,” “us,”
and “our” refer to Acacia Research Corporation and/or its wholly
and majority-owned operating subsidiaries. All intellectual
property investment, development, licensing and enforcement
activities are conducted solely by certain of Acacia Research
Corporation’s wholly and majority-owned operating subsidiaries.
(2) Acacia Research Group LLC, ADAPTIX, Inc., Auto-Dimensions
LLC, Body Science LLC, Bonutti Skeletal Innovations LLC, Brandywine
Communications Technologies LLC, Cell and Network Selection LLC,
Cellular Communications Equipment LLC, Credit Card Fraud Control
Corporation, Database Sync Solutions LLC, Delaware Display Group
LLC, Innovative Display Technologies LLC, Labyrinth Optical
Technologies LLC, LifeScreen Sciences LLC, Online News Link LLC,
Parallel Separation Innovations LLC, Smartphone Technologies LLC,
SOTA Semiconductor LLC, Super Resolution Technologies LLC and
Unified Messaging Solutions LLC are wholly and majority-owned
operating subsidiaries of Acacia Research Corporation.
For Acacia Research CorporationInvestor Relations:Rob Stewart,
949-480-8300Fax: 949-480-8301orMedia Contact:SpecOps
CommunicationsAdam Handelsman, 212-518-7721President &
Founderadam@specopscomm.com
Acacia Research Technolo... (NASDAQ:ACTG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Acacia Research Technolo... (NASDAQ:ACTG)
Historical Stock Chart
From Apr 2023 to Apr 2024