Beaverton, Ore. — April 30, 2010 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the first quarter ended March 31, 2010.
Revenues for the first quarter of 2010 increased 130% to $10.2 million from $4.4 million in the same quarter a year ago. The increase was primarily attributable to the previously announced licensing arrangement with Arbitron on March 23, 2010 that resulted in a payment to Digimarc of $4.5 million on March 29, 2010.
Net income for the first quarter of 2010 was $3.8 million or $0.51 per diluted share, an improvement from a net loss of $809,000 or $(0.11) per diluted share in the first quarter of 2009.
As of March 31, 2010, quarter-end cash and cash equivalents, and short-term and long-term marketable securities, increased 10% to $47.1 million from $42.8 million at the end of the prior quarter.
"Our first quarter was strong across the board and represents a solid start towards achieving our 2010 objectives," said Bruce Davis, Digimarc's chairman and CEO. "Our record results were driven by the Arbitron agreement, which further validates the strength of our intellectual property portfolio and long-term strategy of leveraging our technologies, brand recognition, and market experience to deliver event-driven growth."
"We continue to execute on the key elements of this strategy," added Davis, "which include generating innovations, broadening relevance of our IP, developing new business relationships and joint ventures, and balancing profitable growth with building long-term shareholder value."
Digimarc will hold a conference call later today (April 30, 2010) to discuss these first quarter 2010 results. Chairman and CEO Bruce Davis and CFO Mike McConnell will host the call starting at 11:00 a.m. Eastern time (8:00 a.m. Pacific time). A question and answer session will follow management's presentation.
The call will be broadcast live via webcast on Digimarc's website at www.digimarc.com, and available for replay until May 14, 2010. Thereafter, the webcast will be archived and available at www.digimarc.com/investors/events.asp.
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 regarding our positioning for the year ahead, our ability to execute on the key elements of our strategy 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 is set forth in the company's Form 10-K for the year ended December 31, 2009 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 and Treasurer
+1 503 469 4652
Scott Liolios or Matt Glover
Liolios Group, Inc.
Investor Relations for Digimarc
+1 949 574 3860