Beaverton, Ore. — July 21, 2011 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the second quarter ended June 30, 2011.
Revenues for the second quarter of 2011 increased 81% to $9.5 million from $5.2 million in the same quarter a year ago. The increase was primarily due to a 171% increase in license revenues.
Operating income for the second quarter of 2011 totaled $2.3 million, an improvement of $2.7 million from an operating loss of $378,000 in the same quarter a year ago. The increase primarily reflected higher licensing revenues, offset by higher product development and marketing expenses associated with the launch of Digimarc Discover, as well as litigation expenses associated with the Verance dispute.
Net income for the second quarter of 2011 totaled $3.6 million or $0.50 per diluted share, up by $4.5 million or $0.63 per share over a net loss of $896,000 or $(0.13) per diluted share in the same quarter a year ago. The 2011 results included a net $1.9 million tax benefit, primarily resulting from the reversal of the valuation allowance reserve against the company's deferred tax assets. Net income for the second quarter also included $698,000 for Digimarc's share of the net loss from its joint ventures with Nielsen, up from $561,000 for the Company's share of the net loss a year ago.
At June 30, 2011, cash and cash equivalents and marketable securities totaled $33.7 million, up from $33.1 million at March 30, 2011.
Digimarc will hold a conference call later today (Thursday, July 21, 2011) to discuss second quarter 2011. 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 simulcast via a link available on Digimarc's home page at www.digimarc.com, and will be available for replay until August 4, 2011. Thereafter, the webcast will be archived 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 and any related inferences regarding Digimarc's investment in marketing and research and development associated with the launch of Digimarc Discover, increases in license 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 are set forth in the company's Form 10-K for the year ended December 31, 2010 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
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Scott Liolios or Matt Glover
Liolios Group, Inc.
Investor Relations for Digimarc
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