Acacia shares sink after posting 2Q loss

Patent company Acacia's shares sink after posting loss, sliding revenue in 2Q

Associated Press

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.

View Comments (0)