Acacia Research Corp.'s shares sank Friday, the day after the company, which buys and licenses patents, posted an unexpected second-quarter loss and revenue shrank by more than half.
THE SPARK: Acacia late on Thursday reported a loss of $12.5 million, or 26 cents per share, for the quarter that ended June 30. That is compared with a profit of $6.3 million, or 13 cents per share, in the same quarter last year. Revenue fell 54 percent, to $23.1 million from $50.5 million.
Analysts polled by FactSet expected a profit, of 22 cents per share, and that revenue would grow to $67.9 million.
THE BIG PICTURE: Acacia's subsidiaries control more than 250 patent portfolios, licensing technologies used in a variety of industries. Along with lower revenue, it's coping with higher expenses, including an 88 percent jump in litigation and licensing expenses.
SHARE ACTION: Shares fell $2.65, or nearly 11 percent, to $22.09 by late afternoon. The stock has dropped about 14 percent this year.