ACTG - Earnings call transcript Q2 2019 | Acacia Research Corporation

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Operator

Good day, and welcome, ladies and gentlemen, to the Acacia Research 2019 Second Quarter Earnings Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode.

I will now turn the conference over the Rob Fink. Please go ahead, sir.

Rob Fink

Thank you. are Al today Press. and call the Board Tobia Members, Clifford Hosting

to forecasts beginning, remind that Securities may Reform this relating to would are contain Act expectations, that statements Before in like Litigation during forward-looking you as I the future projections and about information defined provided forward-looking of current events estimates, Private call XXXX.

and results estimates relate objectives may from and and trends. future certain operations These and results plans, expectations current risk the future Company's forward-looking are to statements differ on the those or a generally Actual projected factors projections, based result for materially uncertainties. as of

Reports For and in on uncertainties, filed a with factors factors on described such Acacia's risk discussion risk please Annual see Quarterly Form Form the of XX-Q SEC. the Report and XX-K

call, release well the presentation regarding disclosures company notes that in the to SEC. the non-GAAP were measures other will X-K the refer Please financial and as during included addition, as earnings In the measures. filed our with of financial non-GAAP present yesterday's

at & like was I results release under the on press disclosing everyone be closed. Company's a News release that financial accessed the website remind the the may yesterday Company's This Events after issued tab. to market acaciaresearch.com would

I all the over to call to With Al. said, would turn that Al, is like now the call yours.

Alfred Tobia

Thank you, Rob, and everyone. good morning,

the shaped Shareholder and last with large Annual the set the reforms met which Acacia to governance of year's our a In complete initiative, of year. of During that drove input second shareholders, comprehensive Board transformation began Acacia's strategy on all actions the at implemented quarter, preparing company, past nearly the soliciting we Meeting. this

productive wasteful well-capitalized attractive for directing Board invest of cost the prudent IP view is in to IP the and strategy. rationalizing to deeply Acacia's Directors In assets. a dislocated, expressed new potential offering with licensing business the corporate structure made decision our spending allocation asset shareholders strategic business, a response, that returns company our Our

we significant positioned that With pursue a over producing that carryforwards term. relevant investments capitalization, are returns uniquely operating net loss of and highly professionals, to absolute capable long the Board solid and investors includes are

are opportunities with now public money where value capitalize of and the on identified the Acacia. in markets We opportunistically represented can and a evaluating we them in also number have skills

We realize be initiated assets. filing, August to our us to this we strategy and errors Immersion to This position a we a strategy we X.X% purchased value of intrinsic because corrected trading is have Form of we owing discount a Immersion's this in that X, at consistent investment can significant In optionality. value and the Immersion missteps Corporation. with to position with stated believe filed XXD. provides be that return absolute On

will We future actions apprised shareholders our keep here. of

balance Turning to the sheet.

investment require us Miso burn. are the accounting rules strategic investments Robotics other the write currently off current Specifically cash financial company's given line, partnerships. in They the to position pursuing and

a I'd discussion like and turn our strategy. results Clifford over our QX to progress call to go-forward on review for a of the of our now

Clifford Press

second quarter SEC. XX-Q, the results, release quarterly is which the Al. report press in Thanks available financial file and upcoming the in Form with night of we provide last an more I'll morning, will but everyone. also overview the on Good detail issued

million XX, the As last for Revenues XX to a totaled investments reminder, growing million $XXX.X and our time. $XXX.X compared focus quarter as were short-term XXXX value Cash December as is of Acacia's June $X.X book on over second at million. year.

to plans. used, among approved equity-based other up Directors could buyback the X, dilution Acacia's of common which XX XX from months, in Board of million offset to over incentive the August Acacia purposes, stock the On next be

in new investing we cash the from $X before of $XX operations net about million and For million IP. around million full-year, approximately $XX of a expect revenues budgeted

to now call the questions. open I'd like for

Operator

[Operator Janney. from Please take you. ahead. go We'll question Thank Reiss first Brett our Mr. from Instructions]

Brett Reiss

Hi, Hi, Clifford. Al.

Alfred Tobia

Brett. Hey,

Brett Reiss

patent And Did quarter? intake of Could us? we update couple any how portfolios look does you quarters? this the the next pipeline

Clifford Press

looks good. The pipeline

actually but will get of closed new of we on we a of million that fair year. the around we expect intake, This XXX,XXX view. do $XX by in currently the There's only to quarter, that's material end amount approximately the

Brett Reiss

trying the time intake, When Okay. portfolios that for line a patent quicker start than selecting the in revenue portfolios patent the we're at past? we are to will flow typical find portfolios

Clifford Press

revenue what at basis but short-term Brett, return the year a made the general, in portfolio a of see complete the typical we until in least it strictly it the We're simply fills considering takes a but we've because you're sure available licensing portfolios not looking assets. over buy these patent monetization anything I'm past, to decision the it's at opportunity. coming in a not to as the over to the map. of years rule, start all two on And

Brett Reiss

business pharma looking to royalty the develop? Any on you're Okay. that movement

Alfred Tobia

opportunities IP revenue of are well. represent pharma looking income Well, nature an and and the at that royalties are by we those as opportunity just do the current actually them,

Brett Reiss

some the you the position Immersion and color. situation? to maximum get happen What a you if wish your would to to more Immersion, X%-plus wand best respect see in on that, like magic With wave attracts you And there? what could just

Clifford Press

buy XXD us asset. it in constrained to bit just made now Brett, was difficult this our with it that an we what good a and would stage. filing. beyond public trading clear a the at Form go that we So be it But felt was a filing, It's value represents because we're at discount we're to little for stated attractive

And the take some correct the could we Board actions to probably there undervaluation. Company said that the are of that also

that's the address you're know magic of terms wand, like we thinking to if of So but would I that. what in don't them see

Brett Reiss

position the Great. and both Veritone in One last remaining the with one, our warrants? what's stock

Alfred Tobia

same were remains And unchanged. public That's warrant on stock was. as position filings. XXD The it the the the position

there. news There's right that's no now. So all publicly disclosed

Brett Reiss

queue. I'll for Okay. my taking in you Thank drop back questions.

Operator

William next you. taking Partners. Thank Please question from ROTH Capital from ahead. go [Operator Instructions] We're Gibson our

William Gibson

I'd for. a IP looking implies With to just Brett's the little company, you. in it a like Thank bit are to type and that you investment regard probing follow-up on in of public entity been sort the you're thinking of What's the going the in some of hard of have for NPEs a practicing to monetize? your sense better could be because than return IP non-practicing.

Clifford Press

little go I it's asset issue monetizing this NPE It's is been don't that litigated. how necessarily in some it situation. and I Company of now. assets Yes. We dealt than probably an we're no think a understand actually with. when fading the don't And question. as there non-NPE It's the – case, think being I is you're got looking think about we at question the to solid it's well the different assets. a in Immersion, bit is very how monetized. They're They've been that nature referring them. The take same we versus tested.

Alfred Tobia

add… to just And

William Gibson

Yes.

Alfred Tobia

have just Remember, we $XXX NOL. that. we to plus Look went a million

look have So to an NOL. adding have the an and efficient – structure assets when you at are we productive cost Company, we we

William Gibson

point. you. Good Thank

Operator

or It back there are no further at to closing that the will for appears questions any conference management I remarks. this the additional moment. turn

Rob Fink

all you us for today. Thank joining

Operator

day. this All gentlemen, for and a you disconnect. parties conference now participating concludes and Thank Ladies nice for today. have your may

Acacia Research (ACTG) 6 Aug 192019 Q2 Earnings call transcript