Mar 31, 2020

Acacia Q1 2020 Earnings Report

Acacia Research reported first quarter 2020 financial results, advancing its absolute return strategy and enhancing its IP portfolio with the acquisition of Excalibur IP and wireless networking patents from L3Harris.

Key Takeaways

Acacia Research Corporation reported its financial results for the three-month period ended March 31, 2020. The company has made significant progress in 2020, furthering its absolute return strategy with the acquisition of two attractive patent portfolios, expected to generate licensing revenues in the second quarter and significant contributions in 2021.

Acacia advanced its absolute return strategy.

The company acquired Excalibur IP, a portfolio of more than 2,500 patents.

Acacia acquired a portfolio of nearly 150 patents from L3Harris.

The company expects these additions to begin generating licensing revenues in the second quarter with significant contribution beginning in 2021.

Total Revenue
$3.82M
Previous year: $3.39M
+12.6%
EPS
-$0.24
Previous year: -$0.1
+140.0%
Gross Profit
$1.31M
Previous year: -$2.6M
-150.3%
Cash and Equivalents
$58.7M
Previous year: $73.3M
-19.9%
Free Cash Flow
-$2.37M
Previous year: -$1.96M
+20.9%
Total Assets
$214M
Previous year: $219M
-2.5%

Acacia

Acacia

Forward Guidance

Acacia expects the acquired assets to begin generating licensing revenues in the second quarter with significant contribution beginning in 2021.

Positive Outlook

  • Acquisition of Excalibur IP portfolio with over 2,500 patents.
  • Acquisition of nearly 150 patents from L3Harris.
  • Expected licensing revenue generation from Q2 2020.
  • Significant contribution expected from 2021.
  • Focus on growing book value.