ACTG - Earnings call transcript Q1 2020 | Acacia Research Corporation

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Operator

Greetings and welcome to Acacia Research First Quarter Financial Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I would now like to turn the conference over to your host Mr. IR. FNK with Fink Rob Thank you.

may You begin.

Rob Fink

operator. Clifford are you, call Chief today Chief Executive the Press, Officer Officer. Thank Investment Hosting and Tobia, Al

the that call I provided estimates, relating forecasts beginning, would about to as expectations, you Before future defined projections events like to current during forward-looking contain may that this and forward-looking are statements remind information are the for Securities These and results forward-looking relate and to XXXX. future estimates Reform expectations statements and of company's on Act Litigation objectives projections, the or Private plans, current trends. based operations generally future in

may projected certain of materially results Actual differ from as a uncertainties. and those result risks

reports risks SEC. factors a Acacia's Form annual of such see quarterly are please on described XX-Q with filed and on For that the in risk the report discussion and uncertainties, XX-K

website I may remind to company's opened. results was release that the accessed this press be This News on acaciaresearch.com financial a market would like before company's under morning the at issued tab. release disclosing the everyone the

In presentation can for Events prepared Presentations Acacia's on tab. this an under & website investor addition, be downloaded that also call has the company the

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

Clifford Press

Rob good you, Thank and morning.

Starboard recently kept us volatile Value, very relationship Our announced equity with busy. with combined market has

opportunities. against very investment executing reviewing of broad a range are a We mandate and wide are

and liquidity us constraints, an been committee positioned has compelling number evaluate opportunities. approval meeting frequently. face Unlike or strategic increasing redemptions that have Our that to structures permanent other we well has capital of may

flexible. remarkably to built We Acacia have the be new

pursue We acquisitions do in development flexibility. property assets opportunities greater together and and We or multiple believe Starboard well-positioned public in or of We are revenue can we intellectual to corporate are not pursue we tied acquire with that corporate directly. scale private investments investments can streams. to

At this the involvement we to view brief I specific is it describe point, to and later. important IP business, of industry the how quarter. I of review operations. announced in will Acacia's portfolios these IP patent acquisition we during think purchases regard ongoing the a With two our history

the patent the XXXX. generally business We peaked that support in consensus

While empirical year. environment in decision negative turned in of Alis per the regulatory referenced hard price with data to multiple points XXXX by and come The the we sharply patent by implementation are AIA XXXX the patent team half Acacia his in the of rejoined to Mark conditions starting other among Acacia's monetizing were changes. By portfolios. the tasked Goods second XXXX improve. legacy Mark time and were

that leverageable the through with Acacia's XXXX recovered detailed during see way, to favorable macro showed through quarter started negative set in is fresh to licensing. IP approximately of From an we've our settlements. history we work capital measured gross The in XXXX Acacia’s present a of purchased return. environment. on we asset an returns to has a patent they agreements from study comprehensive our various organization. and board million the With XXXX our quarter of XXXX, eyes reviewed litigation fourth group $XX management first patents revenues of of a with analysis combination We where should focus that risk-adjusted the core mind With markets. increase note a attractive as we litigator commit in in A a aggressive as sharply licensing

investment segment We strategy. We return see our absolute a IP assertion as overall of

with licensing in blend litigation have to using creates our of potential mind these a strategically revenue upside well. Adding portfolio of attractive litigation built IP diversification existing the an to pursue. and outcomes base opportunities licensing the as assets portfolio as with outcome

in We XXXX. significant expect this these with to additions begin licensing quarter revenues beginning generating contributions

Al. to the turn now I'll over call

Al Tobia

you, Clifford. Thank

million. have we first book investments the short-term which growing More the quarter in at details Form file Revenues compared upcoming the at made report SEC December XX-Q were with quarterly these XX, in value. XX, issued been $XXX.X on million to quarter cash also on remain $XXX.X release will Acacia's the focused and XXXX. press $X.X March first morning million and on the for For later this available today. totaled of Strategically results XXXX XXXX

As we shareholder more development would opportunities and evaluate larger continue be to to diverse working we preserve corporate value.

is stock invested as March is value discount trading Our cash per of a steep plus intrinsic at to XX. as share by [$X.XX] assets which its represented

of cash outlined operating investment due we on current redemption our in would test operating of in proxy. plan, the balance expenses approved more by our our investment to X% or diligence the August on XXXX no expect use commencement of the Based first period an than and as beginning completion XXXX

We $X million shares stock million of at per approximately buyback would X.X that share. price note average repurchasing we an recently $X.XX completed

As cloud technologies more apps, cover its business sale have including location-based These services, of portfolio Verizon. Clifford and of earlier media of patents and including and to streaming services to business Yahoo video part software, advertising that as acquired X,XXX reviewed patents the to variety social enterprise others. than Excalibur These search web patent plan online and audio assertion and internet have of analytics, networking. we were among search, management spun this out and industries prior mobile computing, a IP, a e-commerce, our applicability patents shopping

applications automation, significant from patents cover have These commercial technologies. a wireless acquired of home products office LX remote to and home networking, systems we wide nearly including metering, portfolio patents wireless industrial markets IoT of Harris. electronics, and XXX of and variety consumer These Wi-Fi systems. smart and applicability patents control addition, In a access

such portfolio from call, These management and originating flash cover applicable memory we our patents systems patents on Fusion-io. controllers. are control And technology and to as flash of memory finally as we acquired a quarterly drives and disclosed XX over solid-state last

sustain the and necessary stockholders. value have we summary, and In for processes, structure our resources to create cost

lenders. loan progress We assertion efforts finance our own that on focusing litigation, make business business, to development void on continue patent between our to reinvigorating the exists and

wide we with is active partnership range a Starboard opportunities. Our are exploring and of

the Operator? questions. open now With for call like that I'd to

Operator

proceed we'll [Operator time Reiss line this question-and-answer a the session. question. At Please Scott. Janney with Brett your you. Our conducting be question Instructions] Montgomery first is Thank with from

Brett Reiss

morning Good morning, Good Al. Clifford.

Clifford Press

Hi Brett.

Brett Reiss

of The X,XXX of to some a portfolio, segment to any off patents. patent them Do plans start-up? you that's and them have sell lot

Al Tobia

Clifford, me question? you Or to take do want do that? you want the to take

Clifford Press

Go ahead.

You've been with it. dealing

Al Tobia

So Brett, that is there with details we big already an into portfolio offline had agreement do can this a is entered RPX. but

campaigns RPX. option imagine most you that and most take So opportunities. efforts the are of address sort of portfolio, a big there's many to companies very to profitable a licensing of great productive and patents very, is a the it's can it deal broad going so as and lot under segment to This that craft

So we details offline. can those take

If the but connect you big you with deal, take you want look are at we Mark that Booth amount under can a with there's a RPX think, RPX. license have you I

Brett Reiss

for Or queue Okay. in you these Will liberty there paid you next all be of now? patents? the what to quarter at disclose that are disclosures like

Clifford Press

acquisition I on -- will revenues basis can we'll answer that but that going Brett. a consolidated continue disclosing We've on quarterly forward taken prices a consolidated give or information. not we policy provide and individual of basis

Brett Reiss

portfolios, because the being queue I'll drop taking last able more do needing Okay. cover patent really you ask patent to and appreciate I in staff you and anticipate additional one intake? And to in questions back one

Clifford Press

we group handling purchased have have a that are licensing We today. now well place in capable what of

Brett Reiss

my Thank taking you questions. Great. for

Operator

comes SER Rebotsky Management. question the [Operator Instructions] your proceed question. Sam Please Asset from with next online with Our of

Sam Rebotsky

you to this? Yes. queue Do licensing of have cost in you for X-K at in Good reflected that point amount or on amount morning, dollar you're list file does some the gentlemen. the or get the how presumably licensing dollar that the because paying

Clifford Press

CapEx are the X-K. Sam, an is not enough queue but the disclosed the individual to patent in significant require acquisitions

Sam Rebotsky

Okay.

with of press these Excalibur was and Now are press they out talked XX X,XXX is see, subsidiary patents the that that private February I the they Excalibur. Corp about licensing release RPX announces company that and and patents is a Altapa, same or? a put release RPX This transaction

Clifford Press

was it's Altapa, highly Yahoo's patent a from dealt. of and liquidation with in large portfolio in did of a of out, transactions, in parties patent principal and Acacia spin with with one Excalibur which liquidation they assets number process very one-time ended RPX and the they the With valued a which multiple transaction, a That which of the It Yahoo. Alibaba. was up investment it’s held two

Sam Rebotsky

Of they course, XX, and XXXX more XX,XXX than patents. the invested to rights say, acquire release December press U.S. to in RPX $X.X international billion

So piece this a of is just that?

Clifford Press

Sam, them it's probably We'll not on us themselves. to comment a for good releases. other idea speak for press company’s let

Sam Rebotsky

very Okay. Thank much. you

Clifford Press

You are welcome.

Operator

line Wayne please from Partners, the with question. of Cadwallader question next Elkhorn comes proceed Our with

Wayne Cadwallader

Hi, of IPR those percentage What on a acquired. the process? patent been have question that in sense the you've gone there. might Quick that? through office to an patents challenge Any of

Clifford Press

appropriate it's a relate for forum. that to to public litigation potential Those I details and get strategies think don't into in us [indiscernible]

Wayne Cadwallader

Okay.

this them of So some litigation in time? might be

Clifford Press

policy as commenting not of it's said, campaign the of on specifics strong assertion whilst I underway. Well, the have we a

Wayne Cadwallader

Okay. – growth idea you or the in acquired. And in that I two growth reasonable dollar regarding press strong as in from basically, the release revenue third might believe any guide or like your expect the you of patents be there? terms next in said range second, you revenue quarters what Any that

Clifford Press

we and just a know comments a think the expect do in point But produce strategy important here. not licensing as the to wanted investors out here said I think term. put we litigation to a there's the of can revenue and I No. let -- short important the licensing we we initiatives that the in combination

Wayne Cadwallader

you. then. Okay Thank

Clifford Press

Welcome.

Operator

for queue, further back questions Al Tobia over I would the the to are turn to the closing remarks. Mr. no call in There like

Al Tobia

available needs ask and I you Clifford will questions offline. for very be anyone and Thank questions much if to

also well. call Fink Rob can as You

Operator

teleconference. today's concludes This

at and now wonderful have this participation may You your a your you lines Thank day. time. for disconnect

Acacia Research (ACTG) 11 May 202020 Q1 Earnings call transcript