Lara.Burhenn@digimarc.com | +1 503-469-4704
Beaverton, Ore. — July 30, 2010 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the second quarter and six months ended June 30, 2010.
Revenues for the second quarter increased 21% to $5.2 million from $4.3 million in the same quarter a year ago. The increase was primarily attributable to higher royalties from licensees and, to a lesser extent, increased services from certain major customers.
Operating loss for the second quarter improved by more than 50% to $0.4 million compared to an operating loss of $0.8 million in the second quarter of 2009. The net loss for the quarter was $0.9 million or $(0.13) per diluted share including development costs associated with the company's investments in joint ventures with The Nielsen Company compared to a net loss of $0.7 million or $(0.09) per diluted share in the second quarter of 2009.
Revenues in the first half of 2010 increased 76% to $15.4 million from $8.8 million in the same period of 2009, reflecting revenues from the $4.5 million license agreement from Arbitron in the first quarter of 2010, as well as higher service and license revenues from other customers.
Operating income for the first half of 2010 was $3.8 million, compared to an operating loss of $1.8 million in the first half of 2009. Net income in the first half of 2010 was $2.9 million or $0.39 per diluted share, compared to a net loss of $1.5 million or $(0.21) per diluted share in the same period of 2009. The Nielsen Company joint ventures' development costs amounted to $1.0 million in the first half of 2010.
At June 30, 2010, cash and cash equivalents and short-term marketable securities totaled $46.6 million, compared to $47.1 million at March 31, 2010.
Management will host a conference call to discuss these financial results and execution of the company's strategy in more detail. Please see below for more information.
Digimarc will hold a conference call later today (July 30, 2010) to discuss these second 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 simulcast via a link available on Digimarc's home page at www.digimarc.com, and will be available for replay until August 14, 2010. 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 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.
Michael McConnell
Chief Financial Officer and Treasurer
+1 503 469 4652
mmcconnell@digimarc.com
Scott Liolios or Matt Glover
Liolios Group, Inc.
Investor Relations for Digimarc
+1 949 574 3860
info@liolios.com
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