Question-and-Answer Session
Operator
Thank you, sir. The question and answer will begin. (Operator instructions) We will take our first question from Bennett Notman with Davenport.
Bennett Notman – Davenport & Co.
Good afternoon, guys. Paul, could you talk a little bit about sort of a trend in the average deal size? You guys seem to do a pretty good job of opening up some of the newer portfolios and getting first licensing deals done that I was thinking were going to sort of drive higher average deal sizes. And if you could just talk a little bit about maybe how that plays out over time or just what you are seeing on average deal size?
Paul Ryan
I think over time our average deal size will continue to go up. In the first quarter again there were a number of licenses from some legacy portfolios that have smaller revenue price points. But some of the newer technologies that we launched, the 4 new programs, some of those licensing deals were certainly at higher average price point. So, I think it's a trend that will continue. We do have, as you know, when we acquired Global Patents there were 27 patent portfolios and some of those are lower dollar value per deal, but certainly, and incrementally they add to our revenues and we want to fully license those markets. But once we are complete with those, I think you will see our average deal size come up appreciably.
Bennett Notman – Davenport & Co.
But it seemed that average deal size was down a bit this quarter even though you had a lot of contribution from the 4 newer ones. Is that just because they are first deals, they tend to be smaller and that they should ramp as the portfolios mature or how should we think about that?
Paul Ryan
Yes, that plays a role, definitely. Usually your first deals in a portfolio are the smaller and midsize licenses. Usually the larger licenses take a little longer and you have to gain some momentum in the licensing program. So that's the case with some of them, although you saw we did multiple licenses with two of the new portfolios with a major multinational company which were basically the first licenses for two new programs and it was with a larger company. So, there's going to be a mix. But I just think over time as we kind of complete the licensing programs from some of the earlier ones we acquired, you will see the average revenue per deal go up.
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