Beaverton, Ore. — May 2, 2013 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the first quarter ended March 31, 2013.
Revenues for the first quarter of 2013 totaled $10.2 million, compared to $17.0 million in the first quarter of 2012 which included $8.0 million of revenue from Verance Corporation for the payment of past due royalties. Excluding the $8.0 million payment for past due royalties, revenues increased 13% or $1.2 million over the year-ago quarter. The majority of the increase was due to the inclusion of the company's acquisition of Attributor Corporation which was completed in December 2012.
Operating income for the first quarter of 2013 was $1.6 million compared to $9.2 million in the same quarter a year-ago. Net of the Verance past due royalties received and related litigation costs, operating income for the first quarter of 2012 was $1.6 million. The first quarter of 2013 operating results reflect the addition of Attributor's operations and related acquisition costs, plus increased investments in research and development initiatives.
Net income for the first quarter of 2013 was $1.0 million or $0.13 per diluted share compared to $5.0 million or $0.70 per diluted share in the first quarter of 2012. The decrease was due to lower operating income, partially offset by lower income taxes and no activity in the joint ventures which generated losses in the first quarter of 2012.
At March 31, 2013, cash, cash equivalents and marketable securities increased $1.5 million to $40.6 million from $39.1 million at December 31, 2012.
Digimarc will hold a conference call later today (Thursday, May 2, 2013) to discuss these results. The company's 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 broadcast live via webcast at www.digimarc.com/investors and www.earnings.com, and will be available for replay through May 16, 2013. Thereafter, 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 listen-only telephone number below at least 5-10 minutes prior to the scheduled start time:
If you have any difficulty connecting with the conference call, please contact Liolios Group at +1 949 574 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 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, 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 services and 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, 2012 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
+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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