The principal components of revenues for the first quarter of 2001 were $2,390,000, of $3,390,000 in payments received, that were recognized as revenues earned in the quarter by the company’s Soundview Technologies subsidiary and $182,500 in grant revenues recognized by the company’s CombiMatrix subsidiary.

The net loss, after deduction of minority interests and excluding non-cash charges, was $3.3 million, or 19 cents per share. The company’s consolidated CombiMatrix subsidiary accounted for $3.1 million of the net loss, after deduction, of minority interests and excluding non-cash charges.

Including non-cash charges, primarily consisting of $5.2 million of non-cash stock compensation charges relating to a step-up in value of CombiMatrix in connection with its proposed initial public offering, the net loss was $9.5 million or 55 cents per share versus a net loss of $2.3 million, or 16 cents per share in the comparable 2000 period. The company’s consolidated CombiMatrix subsidiary accounted for $7.5 million of the net loss.

Total assets increased to $111.4 million as of March 31, 2001 from $78.9 million as of March 31, 2000.

Cash and short-term investments on a consolidated basis increased to $87.4 million as of March 31, 2001 from $62.1 million as of March 31, 2000.

Research and development costs, primarily associated with the company’s CombiMatrix subsidiary, increased to $5,549,000, including $2,398,000 of non-cash stock compensation charges, before deductions of minority interests, from $734,000 in the comparable 2000 period.

Marketing, general and administrative expenses increased to $11,869,000 from $2,099,000 in the comparable 2000 period, primarily due to the expansion of the company’s CombiMatrix subsidiary, increased litigation expense associated with the company’s Soundview Technologies subsidiary and a non-cash stock compensation charge of $6.0 million before deduction of minority interests compared to a $512,000 charge in the comparable 2000 period.

Business highlights of the first quarter include:

$19.0 million equity financing completed by Acacia Research.

$19.49 million in licensing payments scheduled for first four months of 2001 by Acacia Research subsidiary.

Hitachi, Samsung Electronics, Funai Electric, L.G. Electronics, Sanyo and Daewoo to pay royalties to Acacia Research subsidiary.

Oracle selects Advanced Data Exchange as an Exchange Partner.

National Association of Wholesaler-Distributor and Advanced Data Exchange form strategic alliance.