Acacia(US:ACTG)2023-08-04 18:49Financial Data and Key Metrics Changes - GAAP book value at June 30, 2023, was $335.4 million or $5.71 per basic share, compared to $269.3 million or $6.19 per share at December 31, 2022 [11] - Total second quarter revenues were $7.9 million, down from $16.7 million in the same quarter last year [12] - GAAP net loss attributable to Acacia Research was $18.8 million or $0.36 per diluted share, compared to a net loss of $61.5 million or $1.44 per diluted share in the second quarter of last year [13] Business Line Data and Key Metrics Changes - Printronix generated $7.5 million in revenue in the quarter, down from $8.7 million last year [12] - The intellectual property business generated $400,000 in licensing and other revenue during the quarter, down from $8.1 million in the same quarter last year [12] - General and administrative expenses were $9.4 million, down from $10.7 million in the same quarter of last year due to reduced headcount and compensation costs [12] Market Data and Key Metrics Changes - Total liabilities for warrants and convertible preferred stock were $94.9 million at June 30, 2023 [11] - Cash, cash equivalents, and equity securities at fair value totaled $408 million at June 30, 2023, compared to $349.4 million at December 31, 2022 [14] Company Strategy and Development Direction - The company completed a recapitalization transaction with its largest shareholder, signaling a transformation of Acacia [5] - A corporate incentive plan was put in place to align employee incentives with those of shareholders [6] - The company is focused on sourcing, evaluating, and executing potential transactions, with a growing pipeline of opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the upcoming trial related to WiFi 6 patents, which could accelerate licensing activity [9] - The company is seeing more attractive valuations in the private market, indicating potential for future acquisitions [23][24] - Management acknowledged the eagerness of shareholders for capital deployment and transaction outcomes [26] Other Important Information - The recapitalization transaction resulted in an incremental $166.8 million increase in book value and an incremental $41.4 million increase in shares outstanding [19] - Cash per share stood at $6.05 as of June 30, 2023, with a pro forma cash per share of approximately $3.44 assuming completion of all phases of the Starboard transaction [19] Q&A Session Summary Question: Inquiry about Wi-Fi 6 licensing and M&A strategy - Management confirmed engagement with multiple parties regarding Wi-Fi 6 licensing and noted ongoing evaluation of attractive public market opportunities [21][22] Question: Request for transparency on patent business - Management acknowledged the strength of the patent team and considered the suggestion to provide a spreadsheet of pending cases and trial dates for shareholders [27][28] Question: Clarification on cash balance post recapitalization - Management provided details on the cash balance adjustment following the payment of $60 million in notes, confirming a post-recap cash balance of $343.4 million [30][31]