SANTA CLARA, Calif.- 5/2/2006 - Macrovision Corporation (Nasdaq: MVSN) announced today record first quarter revenues of $57.0 million. Non-GAAP (pro forma) earnings were also a record for a first quarter at $13.2 million, compared to $11.5 million in the first quarter of 2005. Non-GAAP (pro forma) diluted earnings per share were a record $0.25 for a first quarter, compared to $0.22 in the same quarter of 2005. Non-GAAP (pro forma) earnings exclude non-cash or one-time items such as amortization of intangibles from acquisitions, discrete tax items, impairment on investments, and stock-based compensation charges, as applicable.
US GAAP net income for the first quarter of 2006 was $2.9 million compared to $5.5 million for the first quarter of 2005. Diluted GAAP earnings per share for the quarter were $0.06, compared with $0.11 for the comparable quarter in 2005. The primary difference between GAAP earnings in 2005 and 2006 was the impact of the adoption of FAS123R, adopted on January 1, 2006 and to date, only applicable to first quarter 2006 GAAP results. A reconciliation between net income on a GAAP and non-GAAP (pro forma) basis is provided in tables below.
The Company generated a first quarter record $21.3 million of cash from operations and its liquid cash and investments at the end of the first quarter were $242.2 million.
"We are pleased to be able to report record first quarter revenues and pro forma profits for our business. We have seen significant progress with customer acceptance of our transformation in extending our capability in content security and licensing to digital distribution, commerce and hardware licensing," said Fred Amoroso, President and CEO of Macrovision. "We are increasing our outlook for 2006 commensurate with the overachievement in Q1. We believe that our full year 2006 revenue will range between $239 million and $249 million and our expectation for full year fully diluted pro forma earnings per share ranges between $1.03 and $1.07 per share. In the second quarter of 2006, we expect revenue between $54 million and $56 million and we expect fully diluted pro forma earnings per share in the range of $0.20 to $0.22."
"Our quarterly results were solid and we remain optimistic about achieving our financial targets in 2006. Our revenues were higher than they have ever been for a first quarter. We were able to overachieve all other meaningful metrics we set for ourselves, including pro forma operating margin, pro forma earnings per share and cash flow from operations," added James Budge, Chief Financial Officer. "Also notable in the quarter is that the eMeta transaction closed on February 28, 2006 and that the results of operations from close date forward are and will continue to be included in our consolidated financial results."
Macrovision will hold an investor conference call on May 2, 2006, 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
http://www.macrovision.com/ or
http://www.fulldisclosure.com/ (or
http://www.streetevents.com/ for subscribers) on May 2, 2006 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 11058701#. Access to the replay is available through May 3, 2006.
Download this press release as a PDF including financial information. 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, but are not limited to, the Company's forecast of future revenues and earnings and the business strategies and product plans 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/.
# # #
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.
