Acacia Research Reports Second Quarter Financial 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)--Aug. 13, 2002 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:ACRI) today reported second quarter financial results. Revenues for the second quarter of 2002 were $438,000 versus $10,091,000 in the comparable 2001 period. Second quarter 2002 revenues, all of which related to our majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , CombiMatrix CombiMatrix Corp. NASDAQ: CBMX is a company that, among other things, makes DNA microarrays using electrochemistry on arrays of microelectrodes. The arrays are built on semiconductor chips. Corporation, were comprised of revenues recognized under its grants from the U.S. Department of Defense and the National Institutes of Health and product sales 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 government institution. The second quarter 2002 net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $9,701,000 or 49 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. versus a net loss from continuing operations of $4,772,000 or 25 cents per share in the comparable 2001 period. Excluding non-cash compensation charges, the second quarter 2002 net loss was $8,457,000 versus $627,000 in the comparable 2001 period. Non-cash compensation charges after minority interests were $1,244,000 and $4,145,000 for the second quarter of 2002 and 2001, respectively and relate primarily to a step-up step-up A scheduled increase in the exercise or conversion price at which a warrant, an option, or a convertible security may be used to acquire shares of common stock. in value of our CombiMatrix subsidiary in connection with its proposed initial public offering in 2000. Results for the second quarter of 2002 were impacted by CombiMatrix's accelerated development activities under the product commercialization phase of its July July: see month. 2001 license, supply, research and development agreements with Roche n. 1. Rock. Applied Science, resulting in an increase in research and development spending which totaled $5.0 million in the second quarter of 2002 versus $2.7 million in the comparable 2001 period. (Note: All share and per-share information has been adjusted retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin to reflect the 10% stock dividend declared by Acacia Research on October October: see month. 22, 2001 and distributed on December December: see month. 5, 2001.) Financial Condition Total assets were $93.0 million as of June 30, 2002 as compared to $110.9 million as of December 31, 2001. Cash 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 were $66.4 million as of June 30, 2002 as compared to $84.6 million as of December 31, 2001. Business Highlights Business highlights of the second quarter include: -- In July 2002 CombiMatrix completed a milestone in its strategic alliance with Roche Applied Science. CombiMatrix's strategic alliance with Roche includes a collaboration for the development and commercialization of CombiMatrix's DNA microarray technology, enabling flexible and fast custom manufacturing of microarrays by electrochemical oligonucleotide synthesis in-situ. -- In July 2002, Acacia executed a license agreement with Loewe Opta GmbH, whereby Acacia will receive payment and grant a non-exclusive license of its patented V-chip technology to Loewe Opta GmbH, a manufacturer of televisions sold under the Loewe brand name. -- In July 2002, Acacia was granted a patent for its digital media transmission technology in Japan. The patent provides coverage through January 2, 2012. The granting of the Japanese patent strengthens Acacia's worldwide intellectual property position, which includes five patents in the United States and issued patents in 17 foreign countries. -- In July 2002, CombiMatrix completed a prototype electrochemical detection system and delivered the system to the U.S. Department of Defense. CombiMatrix developed its sensor technology through grants from the U.S. Department of Defense. The focus of the grants was aimed at developing an ultrasensitive hand-held biochip system for detecting the deployment of chemical and biological warfare agents. Subsequent business highlights: -- In July 2002 CombiMatrix completed a milestone in its strategic alliance with Roche Applied Science. CombiMatrix's strategic alliance with Roche includes a collaboration for the development and commercialization of CombiMatrix's DNA microarray technology, enabling flexible and fast custom manufacturing of microarrays by electrochemical oligonucleotide synthesis in-situ. -- In July 2002, Acacia executed a license agreement with Loewe Opta GmbH, whereby Acacia will receive payment and grant a non-exclusive license of its patented V-chip technology to Loewe Opta GmbH, a manufacturer of televisions sold under the Loewe brand name. -- In July 2002, Acacia was granted a patent for its digital media transmission technology in Japan. The patent provides coverage through January 2, 2012. The granting of the Japanese patent strengthens Acacia's worldwide intellectual property position, which includes five patents in the United States and issued patents in 17 foreign countries. -- In July 2002, CombiMatrix completed a prototype electrochemical detection system and delivered the system to the U.S. Department of Defense. CombiMatrix developed its sensor technology through grants from the U.S. Department of Defense. The focus of the grants was aimed at developing an ultrasensitive hand-held biochip system for detecting the deployment of chemical and biological warfare agents. A conference call is scheduled for 1:30 p.m. Pacific Time (4:30 p.m. Eastern) on Wednesday, August 14, 2002. The conference call will include a review of financial results for the first quarter and a discussion of business developments. Shareholders, analysts and reporters are welcome to participate. 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 of Acacia Research, and Dr. Amit Kumar, 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 257113 when prompted. The call is being webcast by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and can be accessed at Acacia Research's Web site at www.acaciaresearch.com. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com. About Acacia Research Corporation Acacia Research develops licenses and provides products for the life science and media technology sectors. Acacia licenses its V-chip technology to television manufacturers and owns pioneering technology for digital streaming and video-on-demand. Acacia's CombiMatrix subsidiary is developing a biochip biochip Small-scale device, analogous to an integrated circuit, constructed of or used to analyze organic molecules associated with living organisms. One type of theoretical biochip is a small device constructed of large organic molecules, such as proteins, and capable of technology for the life science market. Acacia Research's Web site is located at www.acaciaresearch.com. 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 (ACRI)
SUMMARY FINANCIAL INFORMATION
(unaudited)
CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
June 30, December 31,
2002 2001
Total Assets $ 92,940 $110,859
Total Liabilities $ 20,808 $ 19,824
Minority Interests $ 29,379 $ 32,303
Total Stockholders' Equity $ 42,753 $ 58,732
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share information)
Three Months Ended
June 30, 2002 June 30, 2001
Revenues:
License fee income $ -- $ 10,000
Product revenue 274 --
Grant revenue 164 91
Total revenues 438 10,091
Operating expenses:
Cost of sales 253 --
Research and development expenses 5,026 2,651
Non-cash stock compensation expense -- R&D 692 2,013
Marketing, general and administrative
expenses 5,516 9,550
Non-cash stock compensation expense -- MG&A 1,451 5,176
Amortization of patents and goodwill 564 638
Total operating expenses 13,502 20,028
Operating loss (13,064) (9,937)
Total other (expense) income (816) 1,031
Loss from operations before income taxes
and minority interests (13,880) (8,906)
Benefit (provision) for income taxes 75 (228)
Loss from operations before minority
interests (13,805) (9,134)
Minority interests 4,104 4,362
Net loss $ (9,701) $ (4,772)
Loss per common share:
Basic $ (0.49) $ (0.25)
Diluted $ (0.49) $ (0.25)
Weighted average number of common and potential
common shares outstanding used in computation of
loss per share:
Basic and diluted 19,634,549 19,503,645
(Note: All share and per-share information has been adjusted retroactively to reflect the 10% stock dividend declared by Acacia Research on October 22, 2001 and distributed on December 5, 2001.) |
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