SANTA CLARA, Calif. 8/1/2005 - Macrovision Corporation (Nasdaq: MVSN) announced today second quarter 2005 net revenues of $44.4 million, an increase of 25% compared to $35.7 million in the second quarter of 2004. Pro forma earnings (before amortization of intangibles from acquisitions and adjustments for changes to our tax rate, as applicable) were $8.0 million, compared to $9.5 million in the second quarter of 2004. Pro forma diluted earnings per share for the quarter were $0.16, compared to $0.19 in the same quarter of 2004. The Company generated $16.8 million of cash from operations and its ending cash and cash equivalents, short-term investments and long term marketable securities were $268.3 million.
GAAP net income for the second quarter of 2005 was $6.1 million, compared to $8.8 million for the second quarter of 2004. Diluted GAAP earnings per share for the quarter were $0.12, compared with $0.18 for the year ago quarter.
"Our second quarter activities have been directed at building for the future," said Fred Amoroso, President and CEO at Macrovision. "With our acquisition of Zero G, we strengthened our multi-server, multi-operating system offering for complex software installation environments. Further, with our acquisition of Trymedia last week we expanded our PC games CD-ROM copy protection business into a more comprehensive full service online distribution business."
Amoroso continued, "During the quarter we made progress in gaining traction with our three new entertainment technologies’ products – Hawkeye for peer-to-peer anti-piracy; CDS-300 for music copy protection; and RipGuard for preventing PC ripping. We signed several new contracts and deployed the technologies in many of the major worldwide manufacturing facilities. However, the DVD industry appears to have hit a few road bumps and our customers are forecasting lower DVD growth in future quarters. This will naturally impact our copy protection business. Looking ahead, we are lowering our FY2005 guidance for revenues to be between $205 and $215 million, and for our pro forma EPS to be between $0.89 and $0.92. For Q3 2005, we are estimating that our business will be essentially flat compared to Q2 in the range of $46-$48 million and our pro forma EPS will be in the range of $0.15 to $0.17. However, for Q4, we are expecting our traditional seasonally strong performance."
Macrovision will hold an investor conference call on August 1, 2005, at 5:00 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 August 1, 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 September 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 11035134#. Access to the replay is available through August 2, 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 204 issued or pending United States patents and 1,172 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, San Francisco, California, the United Kingdom, Amsterdam, Frankfurt, Tel Aviv, Tokyo, Hong Kong, Taipei, Seoul and Alicante, Spain.
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.