Corporation Reports Record Net Revenues and Earnings for First Quarter 2001
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 30, 2001--Macrovision Corporation (Nasdaq:MVSN - news) announced today that first quarter 2001 net revenues were $23.0 million, compared with $16.2 million in the first quarter of 2000, an increase of 42%. Pro forma earnings (before amortization of goodwill, impairment losses on investments and amortization of deferred stock-based compensation) were $9.1 million or 46% higher than the $6.3 million recorded in last year's first quarter. Pro forma diluted earnings per share (before amortization of goodwill, impairment losses on investments and amortization of deferred stock-based compensation) for the quarter rose to $0.18, which was 38% higher than the comparable earnings per share of $0.13 in the first quarter a year ago. Net income (including amortization of goodwill, impairment losses on investments and amortization of deferred stock-based compensation) for the first quarter of 2001 was $3.6 million. This includes a one-time charge of $1.2 million relating to impairment of a private company investment. Diluted earnings per share for the quarter (including amortization of goodwill, impairment losses on investments and amortization of deferred stock-based compensation) was $0.07.
Cash and cash equivalents, short-term investments and long-term marketable securities were $221.8 million as of March 31, 2001. Operating cash flow was $13.2 million for the first quarter of 2001, compared with $6.3 million in the first quarter of 2000, an increase of 110%
These results reflect the inclusion of the operations of GLOBEtrotter Software, Inc., which was acquired on August 31, 2000. The GLOBEtrotter transaction has been accounted for using the ``pooling of interests'' method. As a result, the consolidated financial statements for periods prior to the combination have been restated to include the accounts and results of operations of GLOBEtrotter.
``We're very pleased with our first quarter results,'' said Ian Halifax, CFO at Macrovision. ``Our revenues benefited from continued strong demand for our DVD copy protection solution, and continued solid performance from our newly-acquired GLOBEtrotter division. Our cash position and operating cash flow remain strong, deferred revenue increased sequentially and receivables increased in line with historic seasonal trends. The first quarter was important to us for a number of reasons, notably the announcement of a 3-year copy protection agreement with Artisan Entertainment. We also announced that ONdigital, the UK's largest digital terrestrial television provider, has licensed our pay-per-view copy protection technology, and that Borland has licensed our SafeDisc HD CD-ROM copy protection solution for worldwide software distribution. We continue to remain comfortable with the 2001 earnings guidance we gave during our January 10, 2001 conference call. Current analyst estimates for the second quarter indicate revenues of approximately $24 million and pro forma earnings per share of $0.18; we remain comfortable with those estimates. For the full year 2001, we continue to anticipate revenues of $105-$110 million, with pro forma earnings per share in excess of $0.80, in line with guidance provided earlier this year.''
Immediately following the Q1 earnings release, Macrovision will hold an investor conference call on April 30, from 2:00 p.m. to 3:00 p.m. PDT. Investors and analysts interested in participating in the conference are welcome to call 212-346-7497 and enter reservation No. 18590966.
The Q1 earnings conference call can also be accessed via live webcast at www.macrovision.com or www.streetfusion.com on April 30 at 2:00 p.m. PDT (5:00 p.m. EDT). Approximately 2 hours after the live webcast ends, the on-demand webcast of Macrovision's Q1 earnings conference call can be accessed at www.macrovision.com or www.streetfusion.com until May 7, 2001 at 11:59 p.m. PDT.
Investors and analysts interested in listening to a recording of the conference are welcome to call 800-633-8284 (or international 858-812-6440) and enter reservation No. 18590966. Access to the postview conference is available from 4:00 p.m. PDT on 4/30/01 to 4:00 p.m. PDT on 5/1/01. The conference call script will also be posted on the Company's web site for 30 days.
About Macrovision
Macrovision develops and markets copy protection, rights management and electronic license management technologies for the home video, consumer interactive software and enterprise software markets.
The Video Copy Protection division provides technologies that are used by motion picture studios, cable and satellite TV operators, consumer electronics companies, and personal computer manufacturers to prevent the unauthorized duplication, reception or use of copyrighted video materials. Over 280 million DVDs, over 3 billion videocassettes, and over 45 million digital set top boxes have utilized Macrovision's video copy protection technologies.
The GLOBEtrotter Software division provides electronic license management (ELM) and electronic license delivery (ELD) solutions to independent software vendors (ISVs), as well as SAMSuite software asset management tools for business applications. These products, led by FLEXlm, are in use by over 2,000 ISV customers throughout the world.
The Consumer Software division's SafeCast(TM) is a comprehensive digital rights management (DRM) and security solution for a variety of software, audio, and video products, and includes a wide range of tools that helps publishers encourage trials and generate incremental sales using either CD-ROM or electronic software distribution (ESD) technology. Its SafeDisc® CD-ROM copy protection solution has been licensed to over 100 mastering and replication facilities worldwide and is used by many major interactive software publishers.
Macrovision has its corporate headquarters in Sunnyvale, Calif., with European headquarters in London and Asia-Pacific headquarters in Tokyo.
Note to Editors: Additional background information on Macrovision Corporation can be obtained from our Web Site at www.macrovision.com.
All statements contained herein, including the quotations attributed to Mr. Halifax, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, including statements that use the words ``will,'' ``believes,'' ``anticipates,'' ``estimates,'' ``expects,'' ``intends'' or ``looking to the future'' or similar words that describe the Company's or its management's future plans, objectives, or goals, are ``forward-looking statements'' and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the business strategies and product plans of the Company and the features and benefits of the products of the Company.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Among the important factors that could cause results to differ materially are the following: the failure of markets for home video to develop or expand, and the failure of the Company's products to achieve or sustain market acceptance or to meet, or continue to meet, the changing demands of content or software providers. Other factors include those outlined in the Company's Annual Report on Form 10-K for 2000, its Quarterly Reports on Form 10-Q, and such other documents as are filed with the Securities and Exchange Commission from time to time. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. The Company operates in a continually changing business environment and new factors emerge from time to time. The Company cannot predict such factors, nor can it assess the impact, if any, of such factors on the Company or its results. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Macrovision Corporation And Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months
Ended March 31,
2001 2000
--------- ---------
Net revenues $ 22,974 $ 16,171
Costs and expenses:
Costs of revenues 1,992 1,476
Research and development 2,322 1,570
Selling and marketing 4,040 3,276
General and administrative 3,168 2,451
Amortization of goodwill and other
intangibles from acquisitions 2,683 743
Amortization of deferred
stock-based compensation 3,031 8,732
-------- --------
Total costs and expenses 17,236 18,248
-------- --------
Operating income (loss) 5,738 (2,077)
Interest and other income, net 2,696 2,002
Impairment losses on investments (1,160) --
-------- --------
Income (loss) before income taxes 7,274 (75)
Income taxes 3,648 2,853
-------- --------
Net income (loss) $ 3,626 $ (2,928)
======== ========
Diluted earnings (loss) per share $ 0.07 $ (0.06)
======== ========
Shares used in computing diluted
earnings per share 51,643 48,118
======== ========
Macrovision Corporation And Subsidiaries
Pro forma Reconciliation of Condensed Consolidated
Statements of Operations (1)
(In thousands, except per share data)
(Unaudited)
Three Months
Ended March 31,
2001 2000
-------- --------
Net income (loss) $ 3,626 $ (2,928)
Amortization of goodwill and other
intangibles from acquisitions 1,734 450
Amortization of deferred stock-based
compensation 3,031 8,732
Impairment losses on investments 749 --
-------- --------
Pro forma earnings $ 9,140 $ 6,254
======== ========
Diluted earnings per share reconciliation:
Net income (loss) $ 0.07 $ (0.06)
Add:
Amortization of goodwill and other
intangibles from acquisitions 0.04 0.01
Amortization of deferred stock-based 0.06 0.18
compensation
Impairment losses on investments 0.01 --
-------- --------
Pro forma diluted earnings per share $ 0.18 $ 0.13
======== ========
Shares used in computing diluted
earnings per share 51,643 48,118
======== ========
Notes: (1)
Pro forma results for the quarter ended March 31, 2001 and 2000
are prepared not in accordance with accounting principles generally
accepted in the United States of America. However, Management is of
the opinion that such presentation may be more meaningful in analyzing
the results of operations. These results present the operating results
of Macrovision Corporation, excluding the cost associated with
amortization of goodwill and other intangibles from acquisitions,
amortization of deferred stock-based compensation and impairment
losses on investments. This cost was $5,514 for the three-month period
ended March 31, 2001, net of taxes, where applicable, using the
Company's effective rate of 35.4%.
Macrovision Corporation And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, December 31,
2001 2000
-------- --------
ASSETS
Cash and cash equivalents $ 28,901 $ 22,409
Short-term investments 76,087 85,500
Accounts receivable, net 22,098 15,903
Inventories 232 180
Prepaid expenses and other assets 12,033 16,153
-------- --------
Total Current Assets 139,351 140,145
Property and equipment, net 2,140 2,040
Patents and other intangibles, net 2,352 2,341
Long-term marketable investment
securities 116,770 109,532
Intangibles associated with
acquisition, net 31,809 35,252
Other assets 9,530 7,128
-------- --------
TOTAL ASSETS $301,952 $296,438
======== ========
LIABILITIES
Accounts payable $ 2,579 $ 2,436
Accrued expenses 4,188 5,422
Deferred revenue 11,823 8,392
Income taxes payable 844 --
-------- --------
Total Current Liabilities 19,434 16,250
Notes payable 56 56
Deferred tax liabilities 1,633 4,157
-------- --------
TOTAL LIABILITIES 21,123 20,463
STOCKHOLDERS' EQUITY 280,829 275,975
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $301,952 $296,438
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Contact:
Macrovision Corporation, Sunnyvale
Ian Halifax, 408/743-8600
ir-info@macrovision.com |
