2011 Earnings Increased 36% over 2010 on Higher Revenues.
Beaverton, Ore. — February 23, 2012 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the fourth quarter and fiscal year ended December 31, 2011.
Full Year 2011 Results
2011 revenues increased 16% to $36.0 million from $31.2 million in 2010. The improvement was driven primarily by increases in license and subscription revenues from Intellectual Ventures (IV) and Verance. Net income improved 36% to $5.7 million or $0.76 per diluted share.
At December 31, 2011, cash and cash equivalents and marketable securities totaled $33.4 million, down from $45.9 million at December 31, 2010. The decrease reflects approximately $20 million invested in repurchase of more than 700,000 shares of the Company's common stock, including $14.9 million for a privately negotiated transaction from Koninklijke Philips Electronics, N.V. in January, 2011, offset by positive cash flow from operations.
Fourth Quarter 2011 Results
Revenues for the fourth quarter 2011 decreased 15% to $8.9 million from $10.5 million in the same quarter a year ago. The difference reflects timing of license revenues that resulted from the relationship entered into with IV in the fourth quarter of 2010. During that period the Company was paid $5.3 million by IV, reflecting two quarters of scheduled payments, versus $3.0 million in the fourth quarter of 2011.
Net income for the fourth quarter was $0.5 million or $0.06 per diluted share. The reduction in fourth quarter net income was primarily due to one-time revenues in 2010 associated with signing the license with IV, discussed above, and higher operating expenses associated with the Verance dispute, which was settled in early 2012.
Digimarc will hold a conference call later today (Thursday, February 23, 2012) to discuss fourth quarter 2011 and year-end financial 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 simulcast via a link available on Digimarc's home page at www.digimarc.com, and will be available for replay until March 8, 2012. Thereafter, the webcast will be archived at www.digimarc.com/investors/investor-events-and-webcasts.
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 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