SANTA CLARA, Calif. 11/2/2005 - November 2, 2005—Macrovision Corporation (Nasdaq: MVSN) announced today third quarter 2005 net revenues of $46.6 million, a decrease of 5% compared to $48.9 million in the third quarter of 2004. Pro forma earnings (before amortization of intangibles from acquisitions, in-process research and development charges, impairment on investments, and adjustments for changes to the tax rate, as applicable) were $7.0 million, compared to $11.2 million in the third quarter of 2004. Pro forma diluted earnings per share for the quarter were $0.14, compared to $0.22 in the same quarter of 2004. The Company generated $4.0 million of cash from operations and its ending cash and cash equivalents, short-term investments and long term marketable securities were $246.3 million.
GAAP net income for the third quarter of 2005 was $6.1 million, compared to $1.3 million for the third quarter of 2004. Diluted GAAP earnings per share for the quarter were $0.12, compared with $0.03 for the comparable quarter in 2004.
"The growth rate in DVD sales continues to decline, which impacted revenues from our copy protection business. The result being that our revenues, while within the range of guidance previously provided, were insufficient to support our earnings per share guidance," said Fred Amoroso, President and CEO of Macrovision. "We are pleased, however, to have completed our acquisition of Trymedia during the quarter and to have added considerable experience and depth to our management team. Over the past three months we have been working aggressively on our new strategic direction for the future by identifying the organization, management talent and actions needed to leverage our existing leadership position in the marketplace toward achieving a higher value and broader relationship with our customers. To that end, we initiated an action today to consolidate our divisional operations that will result in a reduction in worldwide headcount by approximately 10%. We believe that these collective actions will allow us to expand our market leadership while allowing us to realize synergies in our business processes resulting in improved operating margins."
"As a result of our current outlook in the copy protection business, we are lowering our 2005 guidance for revenues to a range of $202 to $204 million. We expect Q4 revenues of between $60 and $62 million. We are also lowering our pro forma EPS to be between $0.79 and $0.81 for the full year of 2005 and between $0.28 and $0.30 for the fourth quarter," added James Budge, Chief Financial Officer. "We expect to incur between $2 million and $3 million in restructuring charges in Q4 as a result of our headcount reduction. We expect this headcount reduction combined with other operating expense reductions will result in a reduction of $10 million to $12 million in annual operating expense, primarily realized in 2006."
Macrovision will hold an investor conference call on November 2, 2005, at 5:00 p.m. ET. Investors and analysts interested in participating in the conference are welcome to call 800-366-7417 (or international +1 303-275-2170) and reference the Macrovision call.
The conference call can also be accessed via live Webcast at
www.macrovision.com or
www.fulldisclosure.com (or
www.streetevents.com for subscribers) on November 2, 2005 at 5:00 p.m. ET. The on-demand audio Webcast of Macrovision’s earnings conference call can be accessed approximately 1-2 hours after the live Webcast ends.
Investors and analysts interested in listening to a recorded replay of the conference are welcome to call 800-405-2236 (or international +1 303-590-3000) and enter passcode 11041889#. Access to the replay is available through November 3, 2005.
Macrovision develops and markets content value management and software value management technologies for the home video, PC games, music, cable/satellite, consumer software, and enterprise software industries. Macrovision holds a total of 220 issued or pending United States patents and 1,200 issued or pending international patents, and continues to increase its patent portfolio with new and innovative technologies in related fields. Macrovision has its corporate headquarters in Santa Clara, California, with other offices across the United States and around the world.
Note to Editors: For more information on Macrovision Corporation and its products, please visit
www.macrovision.com.
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© 2005 Macrovision Corporation. Macrovision is a registered trademark of Macrovision Corporation.
All statements contained herein, including the quotations attributed to Mr. Amoroso and Mr. Budge, 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 Company’s forecast of future revenues and earnings, the business strategies and product plans of the Company and the expected results of the headcount and expense reduction action of the Company.
About Macrovision Solutions Corporation
Macrovision Solutions Corporation is focused on providing a uniquely simple digital home entertainment experience by delivering solutions to businesses to protect, enhance and distribute digital goods to consumers across multiple channels. Macrovision's technologies are deployed by companies in the entertainment, consumer electronics, cable and satellite, and online distribution markets to solve industry-specific challenges and bring greater value and a more robust user experience to their customers. The result of deploying Macrovision's solutions is a simple end user experience for discovering, managing and enjoying digital content. Today, Macrovision provides connected middleware, media recognition, interactive programming guides, copy protection and rich media, data and metadata on music, games, movies and television programming. The company also operates an entertainment portal which can be found at http://www.allmusic.com/. Macrovision holds over 4,100 issued or pending patents and patent applications worldwide.
Macrovision is headquartered in Santa Clara, California, with numerous offices across the United States and around the world including Japan, Hong Kong, Luxembourg, and the United Kingdom. More information about Macrovision can be found at http://www.macrovision.com/.
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Forward Looking Statements
All statements contained herein that are not statements of historical fact, including statements that use the words "will" or "is expected to," 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. 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. Such factors are further addressed in the Company's most recent quarterly report on Form 10-Q for the period ended September 30, 2008 and such other documents as are filed with the Securities and Exchange Commission from time to time (available at http://www.sec.gov/). The Company assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.
