With us today are Chip Harris, President of Acacia; Dooyong Lee, Executive Vice President and Clayton Haynes, our Chief Financial Officer.Today, I will give you an overview of the progress we are making in building the business and Clayton Haynes will provide you with analysis of our financial results. We will then open the call for questions. Acacia’s second quarter revenues were $15 million bringing first half revenues to $55 million and trailing 12-month revenues to a new record $90.8 million. During the second quarter, we brought in a record 12 new pattern portfolios for future licensing and with 23 portfolios, new portfolios in the first half, we are on pace for a record year for new portfolios. This is significant because historically there has been a very high correlation between new patent portfolios and future revenue growth. In fact, over the past five years there has been an 85% correlation among our three key performance metrics, which are new patent portfolios, new revenue producing licensing programs and revenues. During the quarter, we continued the recent trend of expanding our business platform by partnering with large companies and leading research institutes based in the US, Europe and Asia. Examples of our new partnering activity in the quarter were patents for GPS technology from a Fortune 100 company, patents for video and software technology from a leading international research institute, patents for energy trading from a major energy company, MEMS patents from a leading research institute and mobile computing patents issued to a major technology company. This recent expansion of our business is a direct result of Acacia building a great track record of patent licensing combined with the growing interest of major multinational companies in monetizing their patent assets. As the number one outsource patent licensing company, we are seeing many new opportunities as large companies seek to generate financial returns on their R&D investments and M&A activities.
Acacia’s corporate partners are recognizing that we have built a unique and highly specialized company for patent licensing and that there are significant advantages to outsourcing this activity to us. They are recognizing the value of our multidisciplinary teams. They can screen patent portfolios for licensing opportunities, our due diligence teams to validate those opportunities, our broad partnering relationships with leading law firms for enforcement and our licensing teams with proven track records of generating revenues.We continue to see a significant expansion in our business from these partnering agreements with large companies and research institutes. The second new trend in our business is the growing interest of large companies and structuring agreements that will enable them to negotiate multiple licensing agreements to a number of our patent portfolios. A number of companies are deciding that it may make more sense to structure business agreements to become an ongoing customer rather than a repeat defendant, and are beginning to view Acacia more as a clearinghouse for in-licensing activity. This trend is the result of the scale we are building in total patent portfolios, our accelerating growth in new pattern portfolios and the increasing depth and quality of many of our newer portfolios. This trend could benefit Acacia and our IP partners by shortening the time to money, reducing legal expenses and other costs and continuing to improve our margins. With that, I would like to turn the call over to our Chief Financial Officer, Clayton Haynes. Clayton Haynes Thank you Paul, and thank you to everyone joining us for today's earnings conference call for the second quarter of 2010. As indicated in today's earnings press release, on a consolidated basis, second quarter 2010 revenues totaled $15 million as compared to $14.4 million in the second quarter of 2009. Second quarter 2010 revenues included license fees from 89 new licensing agreements covering 22 of our technology licensing programs as compared to 22 new licensing agreements covering 16 of our technology licensing programs during the comparable prior-year quarter. Refer to today's earnings press release for a summary of technology licensing programs contributing to revenues during the quarter and a summary of the technology programs generating initial license fee revenues during the quarter. Read the rest of this transcript for free on seekingalpha.com