Acacia Research Corp., the Irvine-based patent licensing and intellectual property firm, posted $29.2 million in net income in the third quarter after a $7.6 million loss in the same period year ago.
Acacia Research said earnings per diluted share were 32 cents in the three-month period ending Sept. 30, on gross revenue of $19.5 million compared with $1.7 million in revenue in the third quarter of 2019.
The company said the 2020 third-quarter reflected a non-cash benefit of $20 million and $21 million in income related to the change in fair value of warrants and embedded derivatives.
“We believe that structural inefficiencies in the small-cap value sector create opportunities for us. Our areas of focus remain mature technology, healthcare, industrial and certain financial services segments,” Al Tobia, Acacia Research’s chief investment officer, said in a statement.
Shares in Acacia Research rose 2.5% to $3.68 apiece for a market cap of $181.9 million after the pre-market announcement.
