Acacia Research Shares Tumble On Q2 Loss, Lower Revenue

(RTTNews) - Acacia Research Corp. (ACTG) tumbled more than 15 percent in extended trades Thursday after the patent licensing company reported a loss for the second quarter on revenues that more than halved from last year. Both revenue and adjusted earnings per share missed analysts' expectations.

Acacia's second-quarter net loss was $12.50 million or $0.26 per share, compared to net income of $6.32 million or $0.13 per share in the year-ago period.

Adjusted net income for the quarter was $6.48 million or $0.13 per share, compared to adjusted net income of $20.95 million or $0.43 per share last year. On average, five analysts polled by Thomson Reuters expected the company to earn $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined 54 percent to $23.11 million from $50.48 million in the same period last year. Analysts had a consensus revenue estimate of $66.98 million for the quarter.

Total operating costs and expenses rose 13 percent to $46.04 million, reflecting litigation and licensing expenses for patents that surged 88 percent from last year.

The company executed 43 new agreements in the quarter, up from 38 in the prior-year period. License and enforcement programs generating revenues were 28, compared to 27 in the year-ago period. Meanwhile, new patent portfolios declined to 7 from 27 last year.

Trailing twelve-month revenue as at the end of the second quarter were $201.17 million, compared to $233.36 million at the end of the prior-year period.

Acacia's board of directors approved a second-quarterly cash dividend of $0.125 per share, which will be paid on August 30, 2013, to shareholders of record at the close of business on August 1, 2013. The company added that it expects future cash dividends to be paid on a quarterly basis that will be at the discretion of the board.

ACTG closed Thursday's regular trading at $24.75, down $0.39 or 1.55 percent on a volume of 1.33 million shares. In after-hours, the stock further declined $3.85 or 15.56 percent to $20.90.