Irvine auto marketer Autobytel Inc. said it swung to a first-quarter profit, thanks to settlement of a patent dispute.
The company, which steers online auto shoppers to dealers, reported operating income of $3.1 million for the quarter, versus an operating loss of $9.1 million a year earlier.
A nearly $10 million gain from a recent settlement with rival Dealix Corp. of Redwood City drove the operating profit.
Without it, Autobytel would have seen a $7 million operating loss.
In December, Autobytel said it was set to get about $20 million in the settlement of a suit over an Autobytel patent for matching auto shoppers with dealers online.
Autobytel is set to get the rest of the payments during the next three years.
The settlement includes a patent licensing deal between Autobytel and Dealix.
Autobytel’s sales for the quarter were flat at $28.4 million.
Fees paid by dealers for lead made up 60% of revenue.
Shares of Autobytel, which have a market value of about $160 million, closed up about 10% Friday.
