Digimarc Corporation (NASDAQ:DMRC) reported financial results for the
fourth quarter and fiscal year ended December 31, 2012.
Fourth Quarter 2012 Results
Revenues for the fourth quarter 2012 increased 4% to $9.3 million from
$8.9 million in the same quarter a year ago. The increase was primarily
attributable to higher licensing revenues from Verance and Intellectual
Ventures ("IV") as well as initial revenues for one month from
Attributor Corporation, partially offset by the elimination of revenues
from the suspension of operations of the Nielsen joint ventures in Q1
Operating income for the fourth quarter 2012 increased 60% to $1.9
million from $1.2 million in the same year-ago quarter. The increase
reflects higher revenues and lower operating expenses.
Net income for the fourth quarter 2012 was $1.1 million or $0.14 per
diluted share compared to $0.5 million or $0.06 per diluted share in the
fourth quarter of 2011. The improvement in net income reflects increased
Full Year 2012 Results
Revenues in 2012 increased 23% to a record $44.4 million from $36.0
million in 2011. The improvement was driven primarily by the $8 million
past due royalties payment from Verance received in Q1 2012 and from
increased license payments from IV and Verance, partially offset by
lower revenues from the suspension of the company's joint ventures with
Operating income in 2012 increased 128% to $14.6 million from $6.4
million in 2011. The improvement reflects increased revenues, partially
offset by slightly higher operating expenses as a result of the
company's recent acquisition of Attributor Corporation in December 2012.
Net income in 2012 increased 46% to $8.3 million or $1.12 per diluted
share from $5.7 million or $0.76 per diluted share in 2011. The
improvement primarily reflects increased revenues. Net income for 2011
includes losses from the suspended joint ventures as well as the
reversal of the valuation allowance against deferred tax assets.
At December 31, 2012, cash, cash equivalents and marketable securities
totaled $39.1 million, up from $33.4 million at December 31, 2011. This
increase is net of the $5.4 million paid in connection with the
On February 20, 2013, Digimarc declared a quarterly dividend of $0.11
per share on the outstanding common shares, payable on March 11, 2013 to
shareholders of record at the close of business on March 4, 2013. The
aggregate amount of the quarterly dividend payment is expected to be
An updated investor presentation is available on Digimarc's website at: http://www.digimarc.com/investors/presentations.
Digimarc will hold a conference call later today (Thursday, February 21,
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 will be available for replay until March 7, 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 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, 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 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
(1) Aggregate cash, cash equivalents, short- and long-term
marketable securities was $39,056 and $33,378 at December 31, 2012
and 2011, respectively.
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