EXHIBIT 99.1
[ACACIA
RESEARCH
CORPORATION
LOGO]
CONTACTS: Rob Stewart
Investor Relations
FOR RELEASE Tel (949) 480-8300
- ----------- Fax (949) 480-8301
March 5, 2002
ACACIA RESEARCH REPORTS RECORD FOURTH QUARTER
AND FISCAL YEAR 2001 FINANCIAL RESULTS
Newport Beach, Calif. - (BUSINESS WIRE) - March 5, 2002 - Acacia
Research Corporation (Nasdaq: ACRI) today reported record fourth quarter and
fiscal year revenues.
"Acacia Research received $6,019,000 in payments during the fourth
quarter of 2001. For the year, we received $32,014,000 consisting of $25,630,000
in payments from the licensing of our television V-chip technology and
$6,384,000 in payments received by our CombiMatrix subsidiary," stated Paul R.
Ryan, Chairman and CEO. "Our company also strengthened its consolidated cash
position to $84,600,000 while increasing the ownership of our media technology
companies to one hundred percent."
"Our reporting results were significantly impacted by non-cash stock
compensation charges resulting from the step-up in valuation of our CombiMatrix
subsidiary in connection with its proposed initial public offering in 2000,
which accounted for approximately 56% of our fiscal year 2001 reported net
loss," concluded Mr. Ryan.
FINANCIAL RESULTS
- -----------------
Revenues for the fourth quarter of 2001 were $1,091,000 compared to no
revenues in the comparable 2000 period. Fourth quarter revenues were comprised
of $1,000,000 in television V-chip technology licensing revenues and $91,000 in
U.S. Department of Defense grant revenues recognized by the company's
CombiMatrix subsidiary.
In addition, during the fourth quarter of 2001 our CombiMatrix
subsidiary received cash payments totaling $4,928,000, which have been recorded
as deferred revenues at December 31, 2001 pursuant to the terms of the related
agreements with Roche Diagnostics and NASA.
Revenues for the year ended December 31, 2001 were a record $24,636,000
compared to $57,000 in revenues for the year ended December 31, 2000. Revenues
were comprised of $24,180,000 in television V-chip technology licensing revenues
and $456,000 in U.S. Department of Defense grant revenues recognized by the
company's CombiMatrix subsidiary.
In addition, during 2001 Acacia Research and our CombiMatrix subsidiary
received cash payments totaling approximately $7,460,000, which have been
recorded as deferred revenues at December 31, 2001 pursuant to the terms of the
related agreements with Philips Electronics, Roche Diagnostics and NASA.
The fourth quarter 2001 net loss from continuing operations was
$5,194,000 or 27 cents per share versus a net loss from continuing operations of
$14,191,000, or 80 cents per share in the comparable 2000 period.
Excluding non-cash compensation charges, the fiscal year 2001 net loss
was $9,900,000 or 51 cents per share compared to $22,699,000 or $1.39 per share
in the comparable 2000 period.
The fiscal year net loss from continuing operations, including non-cash
compensation charges after minority interests of $12,372,000 in 2001 and
$6,460,000 in 2000, primarily relating to a step-up in value of its CombiMatrix
subsidiary in connection with its proposed initial public offering in 2000, was
$22,272,000 or $1.16 per share in 2001 versus a net loss of $29,159,000 or $1.78
per share in 2000.
{Note: All share and per-share information has been adjusted retroactively to
reflect the 10% stock dividend declared by Acacia Research Corporation on
October 22, 2001 and distributed on December 5, 2001.}
FINANCIAL CONDITION
- -------------------
Total assets increased to $110.9 million as of December 31, 2001 from
$98.5 million as of December 31, 2000.
Cash and short-term investments on a consolidated basis increased to
$84.6 million as of December 31, 2001 from $76.8 million as of December 31,
2000.
Business highlights of the fourth quarter include:
o In November 2001, Acacia Research Corporation increased its
ownership of Acacia Media Technologies Corporation, formerly
Greenwich Information Technologies, LLC, from 33 percent to
100 percent. Acacia Media Technologies Corporation owns a
worldwide portfolio of pioneering patents relating to audio
and video transmission and receiving systems, commonly known
as audio-on-demand and video-on-demand, used for distributing
content via computer networks, cable television systems and
direct broadcasting satellite systems.
o On October 22, 2001, our Board of Directors declared a ten
percent (10%) stock dividend. The stock dividend, totaling
1,777,710 shares of our common stock, was distributed on
December 5, 2001 to stockholders of record as of November 21,
2001.
o In October 2001, CombiMatrix Corporation formed a joint
venture with Marubeni Japan, one of Japan's leading trading
companies. The joint venture, based in Tokyo, will focus on
development and licensing opportunities for CombiMatrix's
biochip technology with pharmaceutical and biotechnology
companies in the Japanese market. Marubeni has made an
investment to acquire a minority interest in the joint
venture.
A conference call is scheduled for 6:00 a.m. Pacific Time (9:00 a.m.
Eastern) on Wednesday, March 6, 2002. The conference call will include a review
of financial results for the fourth quarter and fiscal year 2001 and a
discussion of business developments. Shareholders, analysts and reporters are
welcome to participate. Paul R. Ryan, Chairman and CEO 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 233570 when prompted.
The call is being webcast by CCBN and can be accessed at Acacia's
website 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
technology for the life science market. Acacia Research's website is located at
www.acaciaresearch.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS 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. 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 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, RECENT AND FORTHCOMING QUARTERLY REPORTS ON FORM
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)
DECEMBER 31, DECEMBER 31,
2001 2000
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Total Assets $ 110,859 $ 98,516
========== =========
Total Liabilities (see Note 1) $ 19,824 $ 20,848
========== =========
Minority Interests (see Note 1) $ 32,303 $ 17,524
========== =========
Total Stockholders' Equity $ 58,732 $ 60,144
========== =========
- ------------------------------------------------------
Note 1: Effective January 1, 2001, Acacia Research changed its accounting policy
for non-cash accrued stock compensation related to its subsidiaries in
consolidation. As a result, effective January 1, 2001, amortized non-cash stock
compensation charges related to subsidiary stock options are included in
minority interests on our consolidated balance sheet. Prior to the change in
accounting policy, amortized non-cash stock compensation charges related to
subsidiary stock options were reflected as "Accrued Stock Compensation," in
consolidated liabilities. There is no impact on previous consolidated statements
of operations as a result of this change in accounting policy.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER-SHARE INFORMATION)
THREE MONTHS ENDED TWELVE MONTHS ENDED
--------------------------- ---------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2001 2000 2001 2000
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Revenues:
License fee income ............................. $ 1,000 $ -- $ 24,180 $ --
Grant revenue .................................. 91 -- 456 17
Other income ................................... -- -- -- 40
------------ ------------ ------------ ------------
Total revenues ................................. 1,091 -- 24,636 57
------------ ------------ ------------ ------------
Operating expenses ................................. 10,855 17,939 67,834 37,220
------------ ------------ ------------ ------------
Operating loss ................................. (9,764) (17,939) (43,198) (37,163)
------------ ------------ ------------ ------------
Other income (expense) ............................. 1,195 (1,812) 4,166 (1,235)
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Loss from continuing operations before income
taxes and minority interests ................... (8,569) (19,751) (39,032) (38,398)
Benefit (provision) for income taxes ............... 239 42 (780) 73
------------ ------------ ------------ ------------
Loss from continuing operations before
minority interests ............................. (8,330) (19,709) (39,812) (38,325)
Minority interests ................................. 3,136 5,518 17,540 9,166
------------ ------------ ------------ ------------
Loss from continuing operations .................... (5,194) (14,191) (22,272) (29,159)
Discontinued operations
Loss from discontinued operations .............. -- (3,826) -- (9,554)
------------ ------------ ------------ ------------
Loss before cumulative effect of change in
accounting principle ........................... (5,194) (18,017) (22,272) (38,713)
Cumulative effect of change in accounting
principle due to beneficial conversion feature -- -- -- (246)
------------ ------------ ------------ ------------
Net loss ........................................... $ (5,194) $ (18,017) $ (22,272) $ (38,959)
============ ============ ============ ============
CONSOLIDATED STATEMENT OF OPERATIONS, CONTINUED
(IN THOUSANDS, EXCEPT SHARE AND PER-SHARE INFORMATION)
Loss per common share:
Basic and diluted
Loss from continuing operations ................ $ (0.27) $ (0.80) $ (1.16) $ (1.78)
Loss from discontinued operations .............. -- (0.21) -- (0.58)
Cumulative effect of change..................... -- -- -- (0.02)
------------ ------------ ------------ ------------
Net loss ........................................... $ (0.27) $ (1.01) $ (1.16) $ (2.38)
============ ============ ============ ============
Weighted average number of common and potential
common shares outstanding used
in computation of loss per share:
Basic and diluted............................... 19,558,572 17,840,672 19,259,256 16,346,099
============ ============ ============ ============
{Note: All share and per-share information has been adjusted retroactively to
reflect the 10% stock dividend declared by Acacia Research Corporation on
October 22, 2001 and distributed on December 5, 2001.}