Acacia Research Reports First Quarter Results.Business Editors NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif.--(BUSINESS WIRE)--April 29, 2003 Acacia acacia (əkā`shə), any plant of the large leguminous genus Acacia, often thorny shrubs and trees of the family Leguminosae (pulse family). Research Corporation (Nasdaq:ACTG ACTG Acting ACTG AIDS Clinical Trial Group ACTG Actuating/Actuator )(Nasdaq:CBMX) today reported first quarter results. Acacia Research Corporation comprises two operating groups, the Acacia Technologies
Acacia Research Corporation Consolidated Financial Results Consolidated revenues for the first quarter of 2003 were $222,000 versus $249,000 in the comparable 2002 period. First quarter 2003 revenues were primarily comprised of revenues recognized by the CombiMatrix group related to the sale of a DNA Microarray DNA microarray A small solid support, usually a membrane or glass slide, on which sequences of DNA are fixed in an orderly arrangement. DNA microarrays are used for rapid surveys of the expression of many genes simultaneously, as the sequences contained on a Synthesizer synthesizer Machine that electronically generates and modifies sounds, frequently with the use of a digital computer, for use in the composition of electronic music and in live performance. to a Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and university and other contract revenues. In addition, during the first quarter of 2003, CombiMatrix Corporation received cash payments totaling $1,739,000 pursuant to its agreements with Roche Diagnostics Roche Diagnostics Division is a subsidiary of Hoffmann-La Roche which manufactures equipment and reagents for research and medical diagnostic applications. Internally, it is organized into six major business areas: Roche Applied Science, Roche Centralized Diagnostics, Roche , GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) ("Roche"), which have been recorded as deferred revenues, bringing total cash payments received from Roche since the inception of our relationship in July 2001 to $18,495,000. The first quarter 2003 consolidated net loss was $6,667,000 versus a consolidated net loss from operations of $6,427,000 in the comparable 2002 period. Financial Condition Total consolidated assets were $91,283,000 as of March 31, 2003 compared to $97,071,000 as of December 31, 2002. Cash and cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments on a consolidated basis totaled $49,667,000 as of March 31, 2003 compared to $54,688,000 as of December 31, 2002. Acacia Technologies Group (A Division of Acacia Research Corporation) Financial Results The Acacia Technologies group began to recognize Digital Media Transmission ("DMT See DSL. ") technology license fee revenues in the first quarter of 2003. To date, the Acacia Technologies group has entered into 18 license agreements for its DMT technology. All of the Acacia Technologies group's DMT license agreements provide for recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. license fee payments to be made by the respective licensees over the term of the license. The first quarter 2003 division net loss was $1,494,000 versus $2,841,000 in the comparable 2002 period. Financial Condition Total assets for the Acacia Technologies group were $44,698,000 as of March 31, 2003 compared to $47,212,000 as of December 31, 2002. Cash and cash equivalents totaled $37,097,000 as of March 31, 2003 compared to $39,792,000 as of December 31, 2002. CombiMatrix Group (A Division of Acacia Research Corporation) Financial Results Revenues for the first quarter of 2003 were $216,000 versus $249,000 in the comparable 2002 period. First quarter 2003 revenues were comprised of revenue related to the sale of a DNA Microarray Synthesizer to a Japanese university and other contract revenues. In addition, during the first quarter of 2003, the CombiMatrix group received cash payments totaling $1,739,000 pursuant to its agreements with Roche, which have been recorded as deferred revenues, bringing total cash payments received from Roche since the inception of our relationship in July 2001 to $18,495,000. The first quarter 2003 division net loss was $5,173,000 versus a division net loss of $3,586,000 in the comparable 2002 period. Financial Condition Total assets for the CombiMatrix group were $46,810,000 as of March 31, 2003 compared to $49,973,000 as of December 31, 2002. Cash and cash equivalents and short-term investments totaled $12,570,000 as of March 31, 2003 compared to $14,896,000 as of December 31, 2002. Business Highlights Business highlights of the first quarter include: Acacia Technologies group: -- In February 2003, the Acacia Technologies group licensed its DMT technology to Grupo Pegaso to cover Grupo Pegaso's products and services in Mexico. The Acacia Technologies group and Grupo Pegaso also formed a joint venture to license the DMT technology within Mexico. Grupo Pegaso is the partner with Spain's Telefonica in Mexico's second largest mobile telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. company, Telefonica Moviles (NYSE NYSE See: New York Stock Exchange :TEM TEM 1. transmission electron microscope. 2. triethylenemelamine. 3. transmissible encephalopathy of mink. ). Grupo Pegaso also markets satellite bandwidth in Mexico through a partnership with PanAmSat (Nasdaq:SPOT) and will soon distribute Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the content through a satellite platform. Grupo Pegaso is Mexico's leading producer of sports content for radio and participants in pay television and Internet via cable. -- In February 2003, Acacia Media Technologies Corporation initiated patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. District Court for the Central District of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). against 39 Internet media companies. All of the defendants were previously notified of their infringing activity. CombiMatrix group: -- In March 2003, the CombiMatrix group's Japanese subsidiary sold a DNA Microarray Synthesizer to the Keio University Keio University (慶應義塾大学 Keiō gijuku daigaku School of Medicine in Tokyo, Japan. Under the terms of the agreement, Keio University purchased a CombiMatrix custom slide chip synthesizer and entered into an agreement to purchase microarrays that will be used for genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. research. A conference call is scheduled for today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern). Paul R. Ryan, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Acacia Research, Robert "Chip" Harris, President, and Amit Kumar, Ph.D., CEO of CombiMatrix Corporation will host the call. To listen to the presentation by phone, dial 800/360-9865 for domestic callers and 973/694-6836 for international callers. A replay of the audio presentation will be available for 30 days at 800/428-6051 for domestic callers and 973/709-2089 for international callers, both of whom will need to enter the code 290002 when prompted. The call is being webcast by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and can be accessed at Acacia's website at www.acaciaresearch.com. ABOUT ACACIA RESEARCH CORPORATION Acacia Research Corporation comprises two operating groups, Acacia Technologies group and CombiMatrix group. The Acacia Technologies group licenses its DMT and V-chip technologies to media and electronics companies. The DMT technology covers the transmission and receipt of digital audio and digital video content, commonly known as audio-on-demand, video-on-demand, and audio/video streaming, and is supported by 5 U.S. and 17 international patents. The CombiMatrix group is developing a platform technology to rapidly produce customizable active biochips, which are semiconductor-based tools for use in identifying and determining the roles of genes, gene mutations Noun 1. gene mutation - (genetics) a mutation due to an intramolecular reorganization of a gene point mutation genetic science, genetics - the branch of biology that studies heredity and variation in organisms and proteins. The CombiMatrix group's technology has a wide range of applications, from DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. and RNA RNA: see nucleic acid. RNA in full ribonucleic acid One of the two main types of nucleic acid (the other being DNA), which functions in cellular protein synthesis in all living cells and replaces DNA as the carrier of genetic synthesis/diagnostics to immunochemical im·mu·no·chem·is·try n. The chemistry of immunologic phenomena, as of antigen-antibody reactions. im detection. Information about Acacia Research Corporation and the Acacia Technologies group is available at www.acaciaresearch.com. Information about the CombiMatrix group is available at www.combimatrix.com. Acacia Research-Acacia Technologies (Nasdaq:ACTG) and Acacia Research-CombiMatrix (Nasdaq:CBMX) are both classes of common stock issued by Acacia Research Corporation and are intended to reflect the performance of the respective operating groups and are not issued by the operating groups. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . 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 recent economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , recent and forthcoming Quarterly Reports on Form 10-Q Form 10-Q See 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.
ACACIA RESEARCH CORPORATION
SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per share information)
(Unaudited)
CONSOLIDATED BALANCE SHEET INFORMATION
March 31, Dec. 31,
2003 2002
Total Assets $91,283 $97,071
Total Liabilities $20,142 $19,041
Minority Interests $ 1,819 $ 2,171
Total Stockholders' Equity $69,322 $75,859
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31, March 31,
2003 2002
Revenues:
License fee
income $ 6 $ --
Product revenue 209 --
Grant and
contract
revenue 7 249
Total revenues 222 249
Operating expenses:
Cost of sales 77 --
Research and
development
expenses 2,335 2,668
Non-cash stock
compensation
expense --
research and
development 2 421
Marketing,
general and
administrative
expenses 4,255 4,072
Non-cash stock
compensation
expense --
marketing,
general and
administrative 138 1,001
Amortization of
patents 400 564
Total operating
expenses 7,207 8,726
Operating loss (6,985) (8,477)
Total other income (expense) 252 (454)
Loss from continuing operations
before income taxes and minority interests (6,733) (8,931)
Benefit for income taxes 60 69
Loss from continuing operations before
minority interests (6,673) (8,862)
Minority interests 6 2,435
Net loss $(6,667) $(6,427)
Loss per common share:
Attributable to the Acacia Technologies group:
Net loss $(1,494) $(2,841)
Basic and diluted per share (0.08) (0.14)
Attributable to the CombiMatrix group:
Net loss $(5,173) $(3,586)
Basic and diluted per share (0.23) (0.16)
Weighted average shares -- basic and diluted:
Acacia Research -- Acacia Technologies stock 19,640,808 19,640,808
Acacia Research -- CombiMatrix stock 22,983,278 22,950,551
(Note: 2002 share and per-share information gives effect to Acacia
Research Corporation's recapitalization transaction as of January 1,
2002.)
ACACIA TECHNOLOGIES GROUP
(A Division of Acacia Research Corporation)
SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per share information)
(Unaudited)
GROUP BALANCE SHEET INFORMATION
March 31, Dec. 31,
2003 2002
Total Assets $44,698 $47,212
Total Liabilities $ 4,784 $ 5,183
Minority Interests $ 1,142 $ 1,487
Total Stockholders' Equity $38,772 $40,542
GROUP STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31, March 31,
2003 2002
Revenues:
License fee income $6 $--
Total revenues 6 --
Operating expenses:
Marketing, general and administrative expenses 1,323 1,577
Non-cash stock compensation -- marketing, general and
administrative -- 10
Legal expenses -- patents 262 211
Amortization of patents 126 465
Total operating expenses 1,711 2,263
Operating loss (1,705) (2,263)
Total other income (expenses) 185 (644)
Loss from continuing operations before
income taxes and minority interests (1,520) (2,907)
Benefit for income taxes 26 29
Loss from continuing operations before
minority interests (1,494) (2,878)
Minority interests -- 37
Division net loss $(1,494) $(2,841)
COMBIMATRIX GROUP
(A Division of Acacia Research Corporation)
SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per share information)
(Unaudited)
GROUP BALANCE SHEET INFORMATION
March 31, Dec. 31,
2003 2002
Total Assets $46,810 $49,973
Total Liabilities $15,583 $13,972
Minority Interests $ 677 $ 684
Total Stockholders' Equity $30,550 $35,317
GROUP STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31, March 31,
2003 2002
Revenues:
Product revenue $209 $-
Grant and contract revenue 7 249
Total revenues 216 249
Operating expenses:
Cost of sales 77 --
Research and development expenses 2,335 2,668
Non-cash compensation expense --
research and development 2 421
Marketing, general and administrative expenses 2,670 2,284
Non-cash compensation expense -- marketing, general
and administrative 138 991
Amortization of patents 274 99
Total operating expenses 5,496 6,463
Operating loss (5,280) (6,214)
Total other income 67 190
Loss from operations before income taxes
and minority interests (5,213) (6,024)
Benefit for income taxes 34 40
Loss from operations before minority interests (5,179) (5,984)
Minority interests 6 2,398
Division net loss $(5,173) $(3,586)
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