SANTA CLARA, Calif. 5/2/2005 - Macrovision Corporation (Nasdaq: MVSN) announced today first quarter 2005 net revenues of $51.3 million, an increase of 35% compared to $38.0 million in the first quarter of 2004. Pro forma earnings (before amortization of intangibles from acquisitions, non-cash deferred compensation expense, impairment gains and losses on investments, and adjustments for changes to our tax rate, as applicable) were $11.5 million. Pro forma diluted earnings per share for the quarter were $0.22. The Company generated $15.1 million of cash from operations and its ending cash and cash equivalents, short-term investments and long term marketable securities were $265.2 million.
GAAP net income for the first quarter of 2005 was $5.5 million which includes a charge of $5.8 million as a result of writing down an investment in Digimarc to market. Diluted GAAP earnings per share for the quarter were $0.11.
"We are very pleased with our first quarter results," said Bill Krepick, President and CEO at Macrovision. "Our software business turned in a strong performance and for the first time our software technologies’ revenues exceeded our entertainment technologies’ revenues. We increased our customer base for both our new Hawkeye™ peer-to-peer anti-piracy service and our RipGuard DVD™ anti-ripping product. We are pleased that we were able to manage our costs even in the face of additional Sarbanes Oxley expenses and continued investment in new products and in the integration of our acquired products. We were also pleased that we filed our first 10-K under the rules governed by Sarbanes Oxley, and we received an unqualified opinion from our independent registered public accounting firm on our internal controls."
Krepick continued, "Looking ahead, we are confirming our FY2005 guidance for revenues to be between $220 and $230 million, but increasing our guidance for pro forma EPS which we expect to be in the $1.05-$1.07 range, and GAAP earnings per share in the range of $0.83-$0.86. For Q2 2005, we are estimating that our revenues will be in the range of $47-$49 million and our pro forma EPS will be in the range of $0.15-$0.17. Our forecasts take into account the fact that we have a number of new products that we expect will slowly gain traction as the year progresses and will culminate in a strong Q4, which will reflect historical seasonality in both of our business units. These projections include the impact of the InstallShield® acquisition for the full year."
Immediately following the Q1 2005 earnings release, Macrovision will hold an investor conference call on May 2, 2005, from 5:00 p.m. to 6:00 p.m. ET. Investors and analysts interested in participating in the conference are welcome to call 800-219-6110 (or international +1 303-262-2050) 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 May 2, 2005 at 5:00 p.m. ET. Approximately 1-2 hours after the live Webcast ends, the on-demand Webcast of Macrovision’s earnings conference call can be accessed until June 1, 2005.
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 11028650#. Access to the replay is available through May 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 187 issued or pending United States patents and 1129 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 in Schaumburg, Illinois, the United Kingdom, Amsterdam, Frankfurt, Tel Aviv, Tokyo, Hong Kong, Taipei and Seoul.
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.
