Acacia Research Shares Tumble As Q3 Loss Widens, Revenues Miss View

(RTTNews) - Shares of Acacia Research Corp. (ACTG) tumbled more than 13 percent in extended trades Thursday after the patent licensing company reported a loss for the third quarter that widened from last year, while revenues more than halved and missed analysts' estimates.

Acacia Research's net loss for the third quarter widened to $15.71 million or $0.33 per share from $6.62 million or $0.14 per share in the year-ago period.

Adjusted net income for the quarter was $5.09 million or $0.11 per share, compared to $6.78 million or $0.14 per share in the year-ago quarter. On average, five analysts polled by Thomson Reuters expected the company to earn $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter fell 56 percent to $15.52 million from $34.94 million in the comparable prior year quarter. Analysts had a consensus estimate of $50.72 million.

Total operating costs and expenses rose 17 percent to $50.86 million, reflecting litigation and licensing expenses for patents that surged 82 percent from last year.

The company executed 24 new agreements in the quarter, down from 33 in the prior-year period. License and enforcement programs generating revenues were 24, compared to 31 in the year-ago period. Meanwhile, new patent portfolios declined to 6 from 13 last year.

Trailing twelve-month revenues as at the end of the third quarter were $181.76 million, compared to $205.26 million at the end of the prior-year period.

Acacia's board of directors approved a third-quarterly cash dividend of $0.125 per share, which will be paid on November 29, 2013, to shareholders of record at the close of business on November 1, 2013. The company added that it expects future cash dividends to be paid on a quarterly basis that will be at the discretion of the board.

ACTG closed Thursday's regular trading at $19.62, down $1.09 or 5.26 percent on a volume of 1.48 million shares. In after-hours, the stock further declined $2.62 or 13.35 percent to $17.00.