Declares Quarterly Dividend of $0.11 per Share
Beaverton, Ore. — July 26, 2012 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Results
Revenues for the second quarter 2012 decreased 4% to $9.1 million from $9.5 million in the same quarter a year ago. The small decrease in revenues was primarily due to lower revenues from joint ventures with The Nielsen Company ("Nielsen") as a result of the previously announced suspension of operations of the ventures in the first quarter of 2012.
Operating income for the quarter was $1.9 million, compared to $2.3 million in the second quarter of 2011. The lower income reflects the decrease in revenues noted above and increased investment in research and development.
Net income for the quarter was $1.2 million or $0.17 per diluted share. This compares to net income of $3.6 million or $0.50 per diluted share in the second quarter of 2011. The decrease is primarily due to the 2011 results having included a $2.6 million tax benefit that resulted from the reversal of a valuation allowance on the company's deferred tax assets.
At June 30, 2012, cash and cash equivalents, and marketable securities totaled $43.5 million, up from $33.4 million at December 31, 2011. The increase is primarily due to increased license revenues from Verance after settlement of litigation in the first quarter of 2012.
Digimarc declared a quarterly dividend of $0.11 per share on the outstanding common shares, payable on August 24, 2012 to shareholders of record at the close of business on August 10, 2012. The aggregate amount of the quarterly dividend payment is expected to be approximately $784,000.
Digimarc will hold a conference call later today (Thursday, July 26, 2012) to discuss second quarter 2012 results. Chairman and CEO Bruce Davis and CFO Mike McConnell will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management's presentation.
The call will be broadcast live via webcast at www.digimarc.com/investors and www.earnings.com, and will be available for replay until August 9, 2012. Thereafter, the webcast will be archived and available on Digimarc's website at www.digimarc.com/investors/investor-events-and-webcasts.
For those who wish to listen to the call via telephone, please dial the listen-only telephone number below at least 5-10 minutes prior to the scheduled start time:
- Listen-Only Number: 866-562-9934
- Conference ID#: 99525122
If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded digital IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to "see, hear and understand" the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing, and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, please visit www.digimarc.com.
With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements providing inferences about future financial performance and amounts of future dividend payments, any related inferences regarding increases in license and subscription revenues, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts" and "continue" or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company's Form 10-K for the year ended December 31, 2011 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Chief Financial Officer
+1 503 469 4652
Scott Liolios or Matt Glover
Liolios Group, Inc.
Investor Relations for Digimarc
+1 949 574 3860