Acacia Research Reports Third Quarter Results.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. -- 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 results for the three months ended September 30, 2004. Acacia Research Corporation comprises two operating groups, the Acacia Technologies
"The Acacia Technologies group revenues for the third quarter of 2004 were $2,240,000, consisting of the recognition of $1,500,000 in deferred revenues from the licensing program for the television V-chip and $740,000 in licensing revenues from our Digital Media Transmission (DMT See DSL. (R)) technology licensing program. We entered into 41 new licensing agreements for our DMT(R) technology in the third quarter, including our first 6 cable TV licenses. We signed an additional 7 cable TV licenses since the end of the third quarter and have entered into 188 DMT(R) technology licenses to date. New licensees also included online news, movie and entertainment companies such as Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. , iFilm and World Wrestling Entertainment World Wrestling Entertainment, Inc. (WWE) is a publicly traded, privately controlled integrated media (focusing in television, Internet, and live events), and sports entertainment company dealing primarily in the professional wrestling industry, with major revenue sources and a significant number of agreements with major corporations, such as Sonoco and Wachovia, covering the use of our DMT(R) Technology on corporate websites. We also recently commenced the licensing program for our Internet Access See how to access the Internet. Redirection Diverting data from their normal destination to another; for example, to a disk file instead of the printer, or to a server's disk instead of the local disk. See virtual directory, symbolic link, shortcut, redirector and DOS redirection. 1. ("IAR IAR - Instruction Address Register. The IBM name for program counter. ") technology which is used at wireless hotspots," commented 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. Paul Ryan Paul Ryan may refer to:
"The CombiMatrix group reported revenues of $753,000 during the third quarter of 2004, which were comprised of $685,000 of government contract revenues recognized under its biowarfare detection contract and $68,000 of microarray See micro array. microarray - A technique for performing many DNA experiments in parallel. Nothing to do with computers. product sales and service revenue. $62,000 of the government contract revenue related to the sale of microarrays, resulting in total microarray sales for the third quarter of $130,000," said Dr. Amit Kumar, CEO and President of CombiMatrix Corporation. "The CombiMatrix group has recently entered into a number of new collaborative agreements, including a strategic alliance with Furuno Electric Corporation, which made a $1,000,000 upfront payment during the third quarter, and agreements with Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking , Strand Strand, street in London, England, roughly parallel with the Thames River, running from the Temple to Trafalgar Square. It is a street of law courts, hotels, theaters, and office buildings and is the main artery between the City and the West End. 1. Genomics and a three-year research and development agreement with the irsiCaixa Foundation for siRNA research. We also launched a series of catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. arrays in the areas of human metabolism metabolism, sum of all biochemical processes involved in life. Two subcategories of metabolism are anabolism, the building up of complex organic molecules from simpler precursors, and catabolism, the breakdown of complex substances into simpler molecules, often , toxicology toxicology, study of poisons, or toxins, from the standpoint of detection, isolation, identification, and determination of their effects on the human body. Toxicology may be considered the branch of pharmacology devoted to the study of the poisonous effects of drugs. and cancer. In addition, Congress allocated an additional $2.3 million in a defense appropriation The designation by the government or an individual of the use to which a fund of money is to be applied. The selection and setting apart of privately owned land by the government for public use, such as a military reservation or public building. spending bill to continue our biowarfare detection program with the Department of Defense. In October 2004, we entered into an agreement to acquire up to a one-third ownership interest in Leuchemix Corporation, a developer of drugs for oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. indications," concluded Dr. Kumar. Acacia Research Corporation Consolidated Financial Results Consolidated revenues for the third quarter of 2004 were $2,993,000 versus $367,000 in the comparable 2003 period. Third quarter 2004 revenues were comprised of $685,000 in government contract revenue and $68,000 in microarray product sales and other contract service revenues, all of which were recognized by the CombiMatrix group, and Digital Media Transmission ("DMT(R)") license fee revenues totaling $740,000 and V-chip license fee revenues of $1,500,000 recognized by the Acacia Technologies group. In August 2004, the U.S. Court of Appeals for the Federal Circuit affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the September 2002 U.S. District Court for the District of Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). ruling that television manufacturers named in the Acacia Technologies group's V-chip 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. lawsuit lawsuit: see procedure; tort. do not infringe in·fringe v. in·fringed, in·fring·ing, in·fring·es v.tr. 1. To transgress or exceed the limits of; violate: infringe a contract; infringe a patent. 2. the Acacia Technologies group's V-chip patent. As a result of the ruling, the Acacia Technologies group recorded an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $1,616,000 associated with the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill related to the V-chip. In addition, as a result of the conclusion of the V-chip patent 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. , the Acacia Technologies group recognized $1,500,000 of V-chip related deferred license fee revenues and $668,000 of V-chip related deferred legal costs in the third quarter of 2004. The ruling has no impact on the revenues that we have recognized to date from licensees of our patented V-chip technology. The third quarter 2004 consolidated net loss was $5,390,000 versus $5,832,000 in the comparable 2003 period. The third quarter 2004 results include non-cash patent amortization, asset depreciation and stock compensation charges totaling $824,000 versus $1,417,000 in the comparable 2003 period. Consolidated research and development expenses in the third quarter of 2004, comprised solely of costs incurred by the CombiMatrix group, were $1,787,000 (including government contract costs) versus $1,726,000 in the comparable 2003 period. Third quarter 2004 research and development activities included increased costs incurred in connection with the CombiMatrix group's commitments under its biowarfare detection contract with the Department of Defense and costs related to other internal research and development efforts in the areas of genomics, drug discovery and development and material sciences. Research and development expenses in the comparable 2003 period related primarily to the CombiMatrix group's research and development 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 ("Roche"), which were completed in the first quarter of 2004. Marketing, general and administrative expenses in the third quarter of 2004 increased to $4,771,000 from $3,675,000 in the comparable 2003 period, due primarily to the addition of licensing and business development personnel for the Acacia Technologies group, an increase in marketing and sales costs related to the launch of the CombiMatrix group's CustomArray(TM) 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 platform in March 2004, an increase in corporate professional fees related to ongoing Sarbanes-Oxley compliance projects at both operating groups and an increase in the Acacia Technologies group's general and administrative overhead costs overhead costs see fixed costs. related to ongoing operations. The increase also reflects V-chip related deferred legal expenses totaling $668,000 recognized during the third quarter of 2004 as described above. Financial Condition Total consolidated assets were $93,546,000 as of September 30, 2004 compared to $90,040,000 as of December 31, 2003. 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 $57,043,000 as of September 30, 2004 compared to $50,500,000 as of December 31, 2003. During the third quarter of 2004, the CombiMatrix group received an upfront payment of $1,000,000 from Furuno Electric Corporation ("Furuno") pursuant to its multi-year collaborative strategic alliance to design, engineer and build CombiMatrix Corporation's Bench-Top DNA Microarray 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. for CustomArray(TM) formatted microarrays. The payment received from Furuno was included in deferred revenues as of the end of the third quarter. Acacia Technologies Group (A Division of Acacia Research Corporation) Financial Results DMT(R) license fee revenues for the third quarter of 2004 were $740,000 versus $186,000 in the comparable 2003 period. To date the Acacia Technologies group has entered into 188 license agreements for its DMT(R) technology. All of the Acacia Technologies group's material DMT(R) license agreements provide for license fee payments to be made by the respective licensees over the term of the licenses. In August 2004, the U.S. Court of Appeals for the Federal Circuit affirmed the September 2002 U.S. District Court for the District of Connecticut ruling that television manufacturers named in the Acacia Technologies group's V-chip patent infringement lawsuit do not infringe the Acacia Technologies group's V-chip patent. As a result of the ruling, the Acacia Technologies group recorded an impairment charge of $1,616,000 associated with the write-off of goodwill related to the V-chip. In addition, as a result of the conclusion of the V-chip patent litigation, the Acacia Technologies group recognized $1,500,000 of V-chip related deferred license fee revenues and $668,000 of V-chip related deferred legal costs in the third quarter of 2004. The ruling has no impact on the revenues that we have recognized to date from licensees of our patented V-chip technology. The third quarter 2004 division net loss was $1,842,000 versus $1,296,000 in the comparable 2003 period. Included in the third quarter 2004 divisional results are non-cash patent amortization and depreciation charges totaling $138,000 versus $153,000 in the comparable 2003 period. Marketing, general and administrative expenses in the third quarter of 2004 increased to $1,323,000 from $955,000 in the comparable 2003 period, due primarily to the addition of licensing and business development personnel, an increase in corporate professional fees related to ongoing Sarbanes-Oxley compliance projects and an increase in general and administrative overhead costs in connection with ongoing operations. Third quarter 2004 patent related legal expenses, excluding V-chip related legal expenses recognized as discussed above, decreased to $506,000 from $598,000 in the comparable 2003 period and will continue to fluctuate based on actual outside patent counsel fees incurred in connection with the Acacia Technologies group's ongoing DMT(R) patent commercialization and enforcement programs. Financial Condition Total assets for the Acacia Technologies group were $34,926,000 as of September 30, 2004 compared to $39,978,000 as of December 31, 2003. Cash and cash equivalents and short-term investments totaled $30,364,000 as of September 30, 2004 compared to $33,201,000 as of December 31, 2003. CombiMatrix Group (A Division of Acacia Research Corporation) Financial Results Revenues for the third quarter of 2004 were $753,000 versus $181,000 in the comparable 2003 period. Third quarter 2004 revenues were comprised of $685,000 in government contract revenues and $68,000 in microarray product sales and other contract service revenues. The third quarter 2004 division net loss was $3,548,000 versus a division net loss of $4,536,000 in the comparable 2003 period. The third quarter 2004 divisional results include non-cash patent amortization, asset depreciation and stock compensation charges totaling $686,000 versus $1,264,000 in the comparable 2003 period. Third quarter 2004 research and development expenses were $1,787,000 (including government contract costs) versus $1,726,000 in the comparable 2003 period. Third quarter 2004 research and development activities included increased government contract costs incurred in connection with the CombiMatrix group's commitments under its biowarfare detection contract with the Department of Defense and other internal research and development efforts in the areas of genomics, drug discovery and development and material sciences. Research and development expenses in the comparable 2003 period related primarily to the CombiMatrix group's research and development agreements with Roche, which were completed in the first quarter of 2004. Marketing, general and administrative expenses in the third quarter of 2004 increased to $2,274,000 from $2,122,000 in the comparable 2003 period, due primarily to an increase in marketing and sales costs related to the launch of the CombiMatrix group's CustomArray(TM) DNA microarray platform in March 2004 and an increase in corporate professional fees related to ongoing Sarbanes-Oxley compliance projects. Financial Condition Total assets for the CombiMatrix group were $58,735,000 as of September 30, 2004 compared to $50,161,000 as of December 31, 2003. Cash and cash equivalents and short-term investments totaled $26,679,000 as of September 30, 2004 compared to $17,299,000 as of December 31, 2003. During the third quarter of 2004, the CombiMatrix group received an upfront payment of $1,000,000 from Furuno pursuant to its multi-year collaborative strategic alliance to design, engineer and build CombiMatrix Corporation's Bench-Top DNA Microarray Synthesizer for CustomArray(TM) formatted microarrays. The payment received from Furuno was included in deferred revenues as of the end of the third quarter. Business Highlights and Recent Developments Business highlights of the third quarter and recent developments include: Acacia Technologies group: --As of October 2004, the Acacia Technologies group has entered into 188 DMT(R) technology licensing agreements, including agreements with companies in the cable television, hotel on-demand TV services, online music, movie, adult entertainment, e-learning, corporate and sports, news and information industries. We have executed license agreements with companies including Bloomberg L.P., Capella Education Company Capella Education Company (NASDAQ: CPLA) is an education services holding company which owns for-profit, online Capella University and other assets. What is now the Capella Education Company was founded in 1991 by Stephen Shank, former CEO of Tonka Corporation. , Callaway Golf Company Callaway Golf Company is an American golf company based in Carlsbad, California. They manufacture woods, irons, wedges, putters and golf balls and license its name for apparel, footwear, timepieces and accessories. , B&C Cablevision, Central Valley Cable TV, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , CinemaNow, Inc., Disney Enterprises, Inc., General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. Interactive Corporation, Grupo Pegaso, LodgeNet Entertainment Corporation, NXTV, Inc., On Command Corporation, Oral Roberts Noun 1. Oral Roberts - United States evangelist (born 1918) Roberts University, Seren Seren Chlordiazepoxide, see there Innovations, Sonoco Products Sonoco Products Company (NYSE: SON) is a major producer of different types of commercial and consumer product packaging. The company is based in Hartsville, South Carolina, U.S.A. It is also the United States' third largest paper producer. Company, T. Rowe Price T. Rowe Price (NASDAQ: TROW) is an independent global investment management firm and mutual fund manager based in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. T. Associates, Inc., 24/7 University, Inc., Virgin Radio, Wachovia Corporation, and World Wrestling Entertainment, Inc. --On July 12, 2004, the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Central District of California issued a Markman Order giving the Court's construction of some of the disputed patent terms and phrases contained in two of the five U.S. DMT(R) patents. --In July 2004, the Acacia Technologies group acquired U.S. Patent No. 6,226,677 from LodgeNet Entertainment Corporation. The newly acquired patent has several potential licensing opportunities, including DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary registrations, wireless "hotspots," and hotel high-speed Internet See broadband. access ("HSIA Hsia (shēä), semilegendary first dynasty of China, which ruled, according to traditional dates, from c.2205 B.C. to c.1766 B.C. or, according to some modern scholars, from c.1994 B.C. to c.1523 B.C. "). The patent covers technology and methods for redirecting users to a login Signing in and gaining access to a network server, Web server or other computer system. The process (the noun) is a "login" or "logon," while the act of doing it (the verb) is to "log in" or to "log on. page when accessing the Internet. --In September 2004, Acacia Media Technologies Corporation added Mediacom LLC to its complaint filed in the District Court for the Northern District of California alleging infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. of Acacia Media Technologies Corporation's DMT(R) patents against certain cable and satellite companies, increasing the number of defendants in the complaint to ten. As of October 2004, Acacia Media Technologies has executed license and settlement agreements with three of nine cable and satellite companies originally named in the complaint. --In September 2004, Acacia Media Technologies Corporation filed complaints in the U.S. District Court for the District of Arizona, U.S. District Court for the District of Minnesota and the U.S. District Court for the Northern District of Ohio The District of Ohio was a federal judicial district of the United States created by the Federal Judiciary Act of 1801 which consisted of the Northwest and Indiana Territories. - Eastern Division, alleging infringement of Acacia Media Technologies Corporation's DMT(R) patents against certain cable and satellite companies located in Arizona, Minnesota, and Ohio. Companies named in the lawsuits include Armstrong Group, Arvig Communication Systems, Block Communications Block Communications (also known as Blade Communications) is a privately held holding company of various assets, mainly in the print and broadcast media, based in Toledo, Ohio. , Inc., Cable America Corporation, Cable One, Inc., Cable System Services, Inc., Cannon Valley Communications, Inc., East Cleveland East Cleveland, city (1990 pop. 33,096), Cuyahoga co., NE Ohio, a suburb of Cleveland; inc. 1911. Mostly residential, it has some declining light industry. It is, however, the site of a General Electric lamp factory and research laboratory. Cable TV and Communications, LLC, Loretel Cablevision, Massillon Cable TV, Inc., Mid-Continent Media, Inc., Nelsonville TV Cable, Inc., NPG NPG Nature Publishing Group (Macmillan Publishers, Ltd) NPG National Portrait Gallery (UK) NPG NIOSH Pocket Guide to Chemical Hazards NPG New Power Generation (Prince) Cable, Inc., Precis Communications, Inc. San Carlos San Carlos (săn kär`lōs), residential city (1990 pop. 26,167), San Mateo co., W Calif.; inc. 1925. The chief manufactures are plastic products, hardware, and machine parts. Cablevision, LLC, Savage Communications, Inc., Sjoberg's Cablevision, Inc., US Cable, and Wide Open West, LLC. CombiMatrix group: During the third quarter of 2004, the CombiMatrix group entered into the following collaborations: --In July 2004, the CombiMatrix group entered into a co-marketing agreement with Strand Genomics to market Strand Genomics' product "avadis," a data analysis software tool for microarray gene expression that combines scalable analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. algorithms The following is a list of the algorithms described in Wikipedia. See also the list of data structures, list of algorithm general topics and list of terms relating to algorithms and data structures. with interactive visualization Interactive visualization is a branch of graphic visualization in computer science that studies how humans interact with computers to create graphic illustrations of information and how this process can be made more efficient. to derive valuable insights from gene expression data. --In July 2004, the CombiMatrix group and collaborator irsiCaixa Foundation entered into a three-year research, development, and licensing agreement and selected two siRNA candidates for downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). pre-clinical development Pre-clinical development is a stage in the development of a new drug that begins before clinical trials (testing in humans) can begin, and during which important safety and pharmacology data is collected. against HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. . --In August 2004, the CombiMatrix group entered into a multi-year collaborative strategic alliance with Furuno to design, engineer and build CombiMatrix Corporation's Bench-Top DNA Microarray Synthesizer for CustomArray(TM) formatted microarrays. Under the terms of the agreement, Furuno paid CombiMatrix Corporation an upfront fee of $1,000,000 and will make additional development and milestone payments in the future, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the agreement. --In September 2004, the CombiMatrix group and Intel Corporation entered into an agreement to work together on the feasibility of various projects utilizing the CombiMatrix group's core technology. The terms and conditions of the agreement are confidential. --In October 2004, the CombiMatrix group entered into an agreement to acquire up to a one-third ownership interest in Leuchemix, Inc. ("Leuchemix"), a private drug development firm, which is developing several compounds for the treatment of leukemia leukemia (l  kē`mēə), cancerous disorder of the blood-forming tissues (bone marrow, lymphatics, liver, spleen) characterized by excessive production of immature or mature and other
cancers. In consideration for the equity ownership interest, the
CombiMatrix group will provide Leuchemix a total of $4,000,000 to be
paid quarterly over the next two years. Dr. Amit Kumar, CombiMatrix
Corporation's CEO, was named a director of Leuchemix.
Other highlights and recent events: --In July 2004, the CombiMatrix group made available to researchers a new CustomArray(TM) Human Drug Metabolism Drug Metabolism/Interactions Definition Drug metabolism is the process by which the body breaks down and converts medication into active chemical substances. Precautions Drugs can interact with other drugs, foods, and beverages. Array. This array enables researchers to screen a panel of genes and "splice variants" known to be critical for the pharmokinetics and metabolism for both established and new drugs. --In July 2004, the CombiMatrix group made available to researchers its new CustomArray(TM) Human Toxicology Array. This array provides researchers a powerful tool for detecting changes in gene expression indicative of a toxic or stress-related response. --In July 2004, the CombiMatrix group announced that it will receive $2.3 million from a Department of Defense spending bill passed by Congress, which will be used to further its biowarfare detector detector: see particle detector. system currently under development under its existing $5.9 million contract with the Department of Defense. --In July 2004, the CombiMatrix group launched a new CustomArray(TM) Core 67 Cancer Array. This array enables researchers to screen and monitor the 67 genes that were recently identified as markers of multiple types of cancer. --In August 2004, the CombiMatrix group's strategic partner, Nanomaterials Discovery Corporation ("NDC NDC National Drug Code NDC NATO Defense College NDC National Documentation Centre (National Hellenic Research Foundation, Athens, Greece) NDC National Dairy Council NDC National Democratic Congress "), was awarded $2.5 million from the Department of Defense for the development of its fuel cell technology. NDC will utilize the CombiMatrix group's NanoArrays(TM) for the further discovery and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. of a new class of fuel cells powered by high-energy materials such as propellants and explosives. A conference call is scheduled for today. The Acacia Technologies Group presentation and Q&A will start at 1:30 p.m. Pacific Time (4:30 p.m. Eastern). The CombiMatrix Group presentation and Q&A session will start at 2:00 p.m. Pacific Time (5:00 p.m. Eastern). To listen to the presentation by phone, dial (800) 238-9007 for domestic callers and (719) 457-2622 for international callers, both of whom will need to provide the operator with the confirmation code 988192. A replay of the audio presentation will be available for 30 days at (888) 203-1112 for domestic callers and (719) 457-0820 for international callers, both of whom will need to enter the code 988192 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 develops, acquires, and licenses patented technologies. Acacia's DMT(R) technology, which is supported by 5 U.S. and 31 foreign patents, relates to audio and audio/video transmission and receiving systems commonly known as audio-on-demand, video-on-demand, and audio/video streaming, and is used for distributing digital content via several means including Internet, cable, satellite and wireless systems. Acacia's Internet Access Redirection ("IAR") technology covers redirected Internet registrations commonly used at wireless hotspots. The CombiMatrix group is developing a platform technology to rapidly produce customizable arrays, 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 potential applications in the areas of genomics, proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. , biosensors, drug discovery, drug development, diagnostics, combinatorial chemistry Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules. Introduction Synthesis of molecules in a combinatorial fashion can quickly lead to large numbers of molecules. , material sciences and nanotechnology nanotechnology: see micromechanics. nanotechnology Manipulation of atoms, molecules, and materials to form structures on the scale of nanometres (billionths of a metre). . 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. Information about the Acacia Technologies group and the CombiMatrix group is available 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
SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per share information)
(Unaudited)
CONSOLIDATED BALANCE SHEET INFORMATION
September 30, December 31,
2004 2003
------------ -----------
Total Assets $ 93,546 $ 90,040
============ ===========
Total Liabilities $ 11,872 $ 28,513
============ ===========
Minority Interests $ 780 $ 1,127
============ ===========
Total Stockholders' Equity $ 80,894 $ 60,400
============ ===========
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months For the Nine Months
Ended Ended
--------------------- ---------------------
September September September September
30, 2004 30, 2003 30, 2004 30, 2003
---------- --------- --------- ----------
Revenues:
Research and development
contract $- $- $17,302 $-
License fees 2,240 186 3,505 211
Government contract 685 - 1,603 -
Service contracts 16 10 102 23
Products 52 171 112 380
------- --------- --------- ----------
Total revenues 2,993 367 22,624 614
------- --------- --------- ----------
Operating expenses:
Cost of government
contract revenues 647 - 1,505 -
Cost of product sales 41 17 81 94
Research and development
expenses 1,140 1,726 3,932 6,219
Non-cash stock compensation
amortization - research
and development (10) 243 91 525
Marketing, general and
administrative expenses 4,771 3,675 12,621 11,482
Non-cash stock compensation
amortization - marketing,
general and administrative 157 421 634 1,055
Amortization of patents 399 399 1,197 1,198
Legal settlement charges
(credits) (90) - 776 -
------- --------- --------- ----------
Total operating expenses 7,055 6,481 20,837 20,573
------- --------- --------- ----------
Operating income (loss) (4,062) (6,114) 1,787 (19,959)
------- --------- --------- ----------
Total other income
(expense) (1,398) 212 (1,048) 460
------- --------- --------- ----------
Income (loss) from continuing
operations before income
taxes and minority
interests (5,460) (5,902) 739 (19,499)
Benefit for income taxes 70 70 206 196
------- --------- --------- ----------
Income (loss) from continuing
operations before minority
interests (5,390) (5,832) 945 (19,303)
Minority interests - - 3 30
------- --------- --------- ----------
Income (loss) from continuing
operations (5,390) (5,832) 948 (19,273)
Discontinued operations:
Estimated loss on disposal
of discontinued operations - - (104) -
------- --------- --------- ----------
Net income (loss) $(5,390) $(5,832) $844 $(19,273)
======= ========= ========= ==========
Earnings (loss) per
common share:
Attributable to the Acacia
Technologies group:
Net loss $(1,842) $(1,296) $(3,984) $(4,368)
Basic and diluted loss
per share (0.09) (0.07) (0.20) (0.22)
Attributable to the
CombiMatrix group:
Basic
Net income (loss) $(3,548) $(4,536) $4,828 $(14,905)
Basic earnings (loss)
per share (0.11) (0.18) 0.16 (0.64)
Diluted
Net income (loss) $(3,548) $(4,536) $4,828 $(14,905)
Diluted earnings (loss)
per share (0.11) (0.18) 0.16 (0.64)
Weighted average shares:
Acacia Research -
Acacia Technologies
stock:
Basic and diluted 19,793,487 19,645,949 19,777,820 19,642,541
========== ========== ========== ===========
Acacia Research -
CombiMatrix stock:
Basic 30,962,190 25,890,408 29,570,562 23,129,476
========== ========== ========== ===========
Diluted 30,962,190 25,890,408 30,789,229 23,129,476
========== ========== ========== ===========
ACACIA TECHNOLOGIES GROUP
(A Division of Acacia Research Corporation)
SUMMARY FINANCIAL INFORMATION
(In thousands)
(Unaudited)
GROUP BALANCE SHEET INFORMATION
September 30, December 31,
2004 2003
------------ -----------
Total Assets $ 34,926 $ 39,978
============ ===========
Total Liabilities $ 3,707 $ 4,188
============ ===========
Minority Interests $ 780 $ 1,127
============ ===========
Total Stockholders' Equity $ 30,439 $ 34,663
============ ===========
GROUP STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
------------- ------------ ------------- --------------
September 30, September 30, September 30, September 30,
2004 2003 2004 2003
------------- ------------ ------------- --------------
Revenues:
License fees $2,240 $186 $3,505 $211
-------- -------- -------- --------
Total revenues 2,240 186 3,505 211
-------- -------- -------- --------
Operating expenses:
Marketing,
general and
administrative
expenses 1,323 955 3,489 3,157
Legal expenses
- patents 1,174 598 2,352 1,435
Amortization of
patents 125 125 375 377
-------- -------- -------- --------
Total operating
expenses 2,622 1,678 6,216 4,969
-------- -------- -------- --------
Operating loss (382) (1,492) (2,711) (4,758)
-------- -------- -------- --------
Other income:
Impairment charges (1,616) - (1,616) (207)
Interest income 120 128 340 408
Realized gains
on short-term
investments - 32 - 94
Other income - - - 1
-------- -------- -------- --------
Total other
income
(expense) (1,496) 160 (1,276) 296
-------- -------- -------- --------
Loss from continuing
operations before
income taxes and
minority interests (1,878) (1,332) (3,987) (4,462)
Benefit for
income taxes 36 36 104 94
-------- -------- -------- --------
Loss from continuing
operations before
minority interests (1,842) (1,296) (3,883) (4,368)
Minority interests - - 3 -
-------- -------- -------- --------
Loss from continuing
operations (1,842) (1,296) (3,880) (4,368)
Discontinued
operations:
Estimated loss
on disposal of
discontinued
operations - - (104) -
-------- -------- -------- --------
Division net loss $(1,842) $(1,296) $(3,984) $(4,368)
======== ======== ======== ========
COMBIMATRIX GROUP
(A Division of Acacia Research Corporation)
SUMMARY FINANCIAL INFORMATION
(In thousands)
(Unaudited)
GROUP BALANCE SHEET INFORMATION
September 30, December 31,
2004 2003
------------ -----------
Total Assets $ 58,735 $ 50,161
============ ===========
Total Liabilities $ 8,280 $ 24,424
============ ===========
Minority Interests $ - $ -
============ ===========
Total Stockholders' Equity $ 50,455 $ 25,737
============ ===========
GROUP STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
------------- ------------ ------------ -------------
September 30, September 30, September 30, September 30,
2004 2003 2004 2003
------------- ------------ ------------ -------------
Revenues:
Research and
development
contract $- $- $17,302 $-
Government contract 685 - 1,603 -
Service contracts 16 10 102 23
Products 52 171 112 380
------ -------- -------- --------
Total revenues 753 181 19,119 403
------ -------- -------- --------
Operating expenses:
Cost of government
contract revenues 647 - 1,505 -
Cost of product
sales 41 17 81 94
Research and
development
expenses 1,140 1,726 3,932 6,219
Non-cash stock
compensation
amortization -
research and
development (10) 243 91 525
Marketing,
general and
administrative
expenses 2,274 2,122 6,780 6,890
Non-cash stock
compensation
amortization -
marketing,
general and
administrative 157 421 634 1,055
Amortization of
patents 274 274 822 821
Legal settlement
charges (credits) (90) - 776 -
------ -------- -------- --------
Total operating
expenses 4,433 4,803 14,621 15,604
------ -------- -------- --------
Operating
income (loss) (3,680) (4,622) 4,498 (15,201)
------ -------- -------- --------
Other income:
Interest income 98 52 228 164
------ -------- -------- --------
Total other
income 98 52 228 164
------ -------- -------- --------
Income (loss) from
operations before
income taxes and
minority interests (3,582) (4,570) 4,726 (15,037)
Benefit for income
taxes 34 34 102 102
------ -------- -------- --------
Income (loss) from
operations before
minority interests (3,548) (4,536) 4,828 (14,935)
Minority interests - - - 30
------ -------- -------- --------
Division net
income (loss) $(3,548) $(4,536) $4,828 $(14,905)
====== ======== ======== ========
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