Acacia Research Reports Fourth Quarter and Record Year End Financial Results

The increase in our quarterly effective tax rate reflects the impact of the suspension of the use of net operating losses (“NOLs”) in California, as described below, and the calculation of tax expense for financial reporting purposes without the excess tax benefit related to the exercise and vesting of equity-based incentive awards in fiscal year 2010. See “Summary Financial Results for the years ended December 31, 2010 and 2009” below for additional information.

Summary Financial Results
For the Years Ended December 31, 2010 and 2009

Cost of Revenues (in thousands):

                Years Ended December 31,
2010           2009
 

Inventor royalties & net income attributable to noncontrolling interests

$ 28,483 $ 21,330
Contingent legal fees 19,906 15,945
 

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