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Shares of Acacia Research Corp. plummeted Friday, a day after the Newport Beach-based company reported first quarter revenue and earnings dropped significantly from a year ago.

Investors appeared to seize on the shortfall, sending down shares more than 24% in Friday trading to a market value of $1.1 billion.

The company posted revenue of $76.8 million in the recently ended quarter, down 22.3% from a year ago.

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Adjusted profits topped $22.7 million, down 66.4% from a year earlier.

The first quarter results actually beat Wall Street expectations.

Analysts on average had forecast an adjusted profit of $20.6 million on sales of $58.6 million.

Acacia licenses patents from its own portfolio and for other companies, typically splitting sales, licensing fees and court settlements with patent holders.

The company also buys patents outright rather than licensing technology on behalf of companies and recently shifted its portfolio toward the medical sector.

Its stock is one of the more volatile among Orange County’s public companies.