Beaverton, Ore. — July 23, 2014 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Results
Revenue for the second quarter of 2014 totaled $5.7 million compared to $10.5 million in the second quarter of 2013. The decrease was primarily due to the end of the scheduled minimum quarterly license fee payments from Intellectual Ventures in the second quarter of 2013 and from The Nielsen Company in the first quarter of 2014. Excluding the impact of these quarterly license fee payments, revenue was down $0.4 million or 6% for the second quarter of 2014 compared to the second quarter of 2013, primarily due to the timing of program work with the Central Banks.
Operating loss for the second quarter of 2014 was $4.5 million compared to operating income of $1.4 million in the same quarter a year-ago. The operating loss was primarily due to lower revenue and increased investment in the company’s ongoing product development and sales growth initiatives, mainly focused around Digimarc Discover and Barcode.
Net loss for the second quarter of 2014 was $2.7 million or $(0.38) per diluted share compared to net income of $0.6 million or $0.08 per diluted share in the second quarter of 2013.
At June 30, 2014, cash, cash equivalents and marketable securities totaled $27.9 million compared to $32.3 million at March 31, 2014.
Digimarc will hold a conference call later today (Wednesday, July 23, 2014) to discuss these results. Management will also provide an update on market conditions and execution of strategy. Chairman and CEO Bruce Davis and CFO Charles Beck 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 discussion.
The call will be broadcast live via webcast at www.digimarc.com/investors and available for replay through July 30, 2014. 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 telephone number below at least five minutes prior to the scheduled start time:
- Number: +1 866 562-9934
- Conference ID: 27179678
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 Digimarc 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, 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 timing of program work with the Central Banks and increased investments in ongoing product development and sales growth initiatives, 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, 2013 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 4721
Scott Liolios or Matt Glover
Liolios Group, Inc.
Investor Relations for Digimarc
+1 949 574 3860