Patlex Posts 1st Full-Year Profit Since Its Founding

Patlex Corp., reaping the benefits of its long struggle to win laser patent rights, posted its first full-year profit since the Chatsworth-based company was founded a decade ago.

Patlex said it earned $2.2 million, or 39 cents a share, in the quarter ended Dec. 31, contrasted with a loss of $579,800 a year earlier. Fourth-quarter revenue soared to $6.6 million from $2.4 million.

For the full year, Patlex’s net income totaled $230,100, or 4 cents a share, contrasted with a $2.3-million loss in 1986. Its annual revenue nearly tripled, from $5.9 million to $15.8 million.

Patlex was formed to help laser pioneer Gordon Gould, its vice chairman, fight a lengthy legal battle to get patents on his laser designs. The costly effort left Patlex with losses every year, but, in return, Gould agreed to pay Patlex 64% of licensing royalties the patents might earn.

And, in recent months, Gould secured three major patents covering the manufacture and use of lasers. Now he and Patlex are collecting millions of dollars by requiring companies that use the technology to sign licensing agreements and pay royalties.

“To date, we have issued more than 44 licenses and expect to significantly increase that number in 1988,” Patlex Chairman Richard Samuel said in a statement.