Exhibit 99.1
CONTACTS: Rob Stewart
Investor Relations
FOR RELEASE Tel (949) 480-8300
April 29, 2003 Fax (949) 480-8301
ACACIA RESEARCH REPORTS
FIRST QUARTER RESULTS
Newport Beach, Calif. - (BUSINESS WIRE) - April 29, 2003 - Acacia
Research Corporation (Nasdaq: ACTG; CBMX) today reported first quarter results.
Acacia Research Corporation comprises two operating groups, the Acacia
Technologies group and the CombiMatrix group.
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 Synthesizer to a Japanese 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, GmbH ("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 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") 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 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:
o 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
company, Telefonica Moviles (NYSE: TEM). Grupo Pegaso also
markets satellite bandwidth in Mexico through a partnership
with PanAmSat (Nasdaq: SPOT) and will soon distribute Internet
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.
o In February 2003, Acacia Media Technologies Corporation
initiated patent infringement litigation in the United States
District Court for the Central District of California against
39 Internet media companies. All of the defendants were
previously notified of their infringing activity.
COMBIMATRIX GROUP:
o In March 2003, the CombiMatrix group's Japanese subsidiary
sold a DNA Microarray Synthesizer to the Keio University
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 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 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 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 and
proteins. The CombiMatrix group's technology has a wide range of applications,
from DNA and RNA synthesis/diagnostics to immunochemical 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 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
SUMMARY FINANCIAL INFORMATION
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE INFORMATION)
(UNAUDITED)
CONSOLIDATED BALANCE SHEET INFORMATION
MARCH 31, DECEMBER 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, 2003 March 31, 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)
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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, DECEMBER 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, 2003 March 31, 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, DECEMBER 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, 2003 March 31, 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
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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