Q3 2019 Earnings Call

Good day, and welcome ladies and gentlemen, Ted They are Acacia research 2019 quarter three earnings call. At this time I would like to inform you that this conference is being recorded and that all participants are in they listen only mode. I would now like to turn the conference over to Rob Fink. Please go ahead Sir.

Thank you operator based on the call today are classified as Chief Executive Officer, Algea, President and Chief investment Officer before beginning I would like to remind you that the information provided during this call may contain forward looking statements relating to his current expectations estimates forecasts and projections about future events.

Forward looking is finding a private securities litigation reform that you might see 95.

These forward looking statements generally relate to the company's plans objectives and expectations for future operations are based on current estimates and projections feature we entered trend.

Actual results may differ materially from those projected.

I think if certain risk factors and uncertainties persist.

For a discussion of such risks and uncertainties. Please see the those factors described in many cases annual report on Form 10-K , <unk> quarterly report. Thank you better files with the FCC.

In addition, during the call the company present non-GAAP financial measures. Please refer to as disclosures regarding the presentation of non-GAAP financial measures and others knows that were included in this mornings press release, an 8-K that was filed.

[laughter] I'd like to remind everyone that a press release skate disclosing somebody's financial results was issued this morning before the market.

This release, maybe accessed on the company's let's say that Acacia research dot com under the news and events that.

But all that said I like to turn the call over to out Allophones yours. Thank you, Rob and good morning, everyone.

This was another quarterly progress for Acacia is we continue to advance our strategic transformation specifically during the third quarter, we established an executive leadership team.

And further rationalized legacy investment portfolio.

We now have the right team in place, where the focus strategy to diversify our business and build a portfolio of intellectual property related absolute return assets.

In a dislocated and undervalued industry Acacia is differentiator.

We have $169 million in cash and marketable securities. We have 242 million in federal and state net operating loss carry forwards and expire between 2026 and 2038.

Additionally, we have $51 million in foreign tax credits [laughter]. Most importantly, we have investments technology life science and transaction skill sets both in senior management and among the board, which we will apply as we move forward.

We believe the IP investing landscape offers attractive potential returns for well capitalized company with a prudent asset allocation strategy.

We are actively advancing a number of opportunities both potential acquisitions and strategic partnerships.

We are eager to provide updates on these opportunities as they develop and are confident in our strategy and focus.

I'd like now to turn the call over to Clifford for review of our Q3 results.

Thanks.

Good morning, I will provide an overview of the third quarter financial results, but mostly Joe is available in the press release issued today.

In the upcoming quarterly report on Form 10-Q , which we will file with the FCC later today.

Judy exposure, we sold a position news over budgets for $2 million that's exiting this condition.

This contributed to the 4.4 million quarter over quarter, increasing cash and short term investments. We ended the quarter with cash and short term investments of 169.3 million, which is up by 34.4 million since the second soldier Kmt 18, Alan I first joined the board.

Existing portfolio of Acacia has a limited number of remaining licenses to be negotiate you didnt meet did not generate significant revenues during the quarter.

I believe the timing and magnitude at the remaining legacy revenues for the full year will be less than previously anticipated accordingly.

Full year revenue guidance from approximately 25 million to between 15 to 20 million.

No I like to open the call for questions.

[noise] [noise]. Thank you if he would like to ask a question. Please signaled by pressing star one on your telephone keypad.

If you're using a speakerphone. Please make sure your mute function is turned off to allow your signaled to reach our equipment again press star one to ask a question well pause for just a moment to allow everyone an opportunity to signal for questions.

Well take our first question from Brett Reece with Janney Montgomery Scott.

Morning out good morning, Cliff and how you doing.

Good how are you.

Good.

Can you give us any color on the.

The patent intake that occurred this quarter.

And he can you do have a substantial amounts of patent intake working as al said to expect we're working on some significant acquisitions in some of those will be patent assets and we expect well, but we're actively working on most of you have something to announce a shortage.

Okay, and just just to kind of broad.

Overall.

Question, you know when I attended the annual meeting.

You know there were three broad categories that you were working on to enhance shareholder value more patent intake, possibly pharma royalties and consolidation opportunities now that you know you've been actively pursuing all three categories.

Can you say are the.

Speed bumps to progress in any of these category of initiatives that you're running into.

I wouldn't say the speed bumps they were doing at all from the sand and stuff. So built a team and once Alan I committed to this during the quarter.

Stick to be I'm, making significant progress from here given the this is.

In some time too.

The company in a position ladies knowledge cleaned up has or will you asked it said it needs and is working on top the ships in the beginning of the persistent building the new IP related absolute return assets strategy.

But at break you're correct in what you identified or areas of focus and Unfortunately, we did not close anything there in the quarter, but we are active in terms of.

In those three areas.

Of the three areas in the next let's say one or two quarters, where do you think we'll we'll see something concrete pick you can release and you know be proud about.

Well, we'd rather talk about that afterwards, but then in a dog.

Alright, Okay fair enough I'm going to drop back in Q.

Thank you.

We have no more questions in the queue at this time, ladies and gentlemen. This concludes our company today. Thank you all for participating and have a nice day all parties may now disconnect.

[noise].