SUNNYVALE, Calif.--(BUSINESS
WIRE)--July 26, 1999--Macrovision Corporation announced today that
second quarter 1999 net revenues were $8.1 million, compared with
$5.7 million in the second quarter of 1998, an increase of 42%.
Net income, excluding an in-process research and development
write-off for the quarter, was $2.2 million or 65% higher than the
$1.3 million recorded in last year's second quarter. Diluted
earnings per share, excluding the in-process research and
development write-off for the quarter, rose to $0.23 which was 35%
higher than the diluted earnings per share of $0.17 in the second
quarter a year ago. This increase occurred in spite of a 21%
increase in shares used in computing diluted earnings per share,
primarily due to the company's June 1998 secondary stock offering.
During the second quarter of 1999,
Macrovision acquired the remaining outstanding shares in C-Dilla
Ltd. for $12.3 million in cash and 109,200 shares of Macrovision
stock. Including the $3.6 million Macrovision paid for its initial
stake in C-Dilla Ltd. in 1998, the total acquisition was valued at
$21.5 million. The acquisition of C-Dilla Ltd. resulted in a one
time charge to operations of $4.3 million as a write-off of
in-process research and development.
Net revenues for the first six
months of 1999 increased to $15.2 million from $10.8 million for
the first six months of 1998, an increase of 40%. Net income,
excluding the in-process research and development write-off, for
the first six months was $4.0 million, which was 74% higher than
the $2.3 million recorded in the first six months of 1998. Diluted
earnings per share, excluding the in-process research and
development write-off, for the first six months of 1999 rose to
$0.43, which was 43% higher than the earnings per share of $0.30
in the first six months of last year.
"We're very pleased with our
second quarter results," said Bill Krepick, President and COO at
Macrovision. "The home video industry continued on a high
note for the Company with increased levels of revenue from all
three product groups, videocassette, DVD and digital PPV. We are
also very happy with the demand for SafeDisc(TM), our consumer
multimedia software copy protection technology, which grew in
excess of 118% over the first quarter. Our second quarter was
important to us for a number of reasons including, the completion
of the acquisition of C-Dilla Ltd. and the signing of Electronic
Arts and Microsoft to SafeDisk contracts. The C-Dilla acquisition
will provide the Company access to new technologies to help
protect audio, software and data distributed via the Internet."
In other news, it was announced
that Vic Viegas, the Company's CFO resigned effective August 1st
to join a start-up company. Krepick complimented Viegas for his
contributions to the Company during its pre and post IPO period,
adding that "with Vic's leadership over the past three years
he has built a strong Finance and Administrative group that is
quite capable of carrying on as we fill his position. We wish him
well."
About Macrovision
Macrovision Corporation develops
and markets technologies to prevent the illicit duplication,
reception or use of video and audio programs and computer
software. The Company provides its products and services primarily
to the home video, consumer multimedia software, pay-per-view,
cable, satellite and video security markets. Macrovision has its
headquarters in Sunnyvale, California with subsidiaries in London
and Tokyo.
All statements contained herein,
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,
constitute "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 or from any
future results expressed or implied by such forward-looking
statements. Such risks and uncertainties are outlined in the
Company's Annual Report on Form 10-KSB for 1998 and its Quarterly
Report on Form 10-Q for the quarter ended March 31, 1999, both as
filed with the Securities and Exchange Commission. 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.
Note to Editors: Additional
background information on Macrovision Corporation is available
through our Web Site at www.macrovision.com.
Macrovision Corporation And Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
---------------- ---------------
1999 1998 1999 1998
------- ------- ------- -------
Net revenues $ 8,057 $ 5,665 $ 15,220 $ 10,843
Costs and expenses:
Cost of revenues 768 449 1,439 847
Research and development 1,108 654 1,739 1,277
Selling and marketing2,064 1,487 3,946 3,013
General and administrative 1,196 1,128 2,577 2,287
Amortization of intangibles
from acquisition 109 -- 109 --
In-process research
and development 4,286 -- 4,286 --
------ ------ ------- ------
Total costs and expenses 9,531 3,718 14,096 7,424
Operating (loss)/income (1,474) 1,947 1,124 3,419
Interest and other income,
net 405 172 823 303
------- ------- ------- ------
(Loss)/income before
income taxes (1,069) 2,119 1,947 3,722
(Benefit)/provision for
income taxes (469) 805 689 1,414
------- ------- ------- -------
(Loss)/net income $ (600) $ 1,314 $ 1,258 $ 2,308
======= ======= ======= =======
Diluted (loss)/earnings per share:
Net income before unusual
charge $ 0.23 $ 0.17 $ 0.43 $ 0.30
In-process research
and development (0.29) -- (0.30) --
------- ------- ------- -------
(Loss)/net income$ (0.06) $ 0.17 $ 0.13 $ 0.30
======= ======= ======= =======
Shares used in computing
diluted earnings per share 9,452 7,838 9,390 7,787
Macrovision Corporation And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
UnauditedAudited
June 30,December 31,
1999 1998
-------- --------
ASSETS
Cash and cash equivalents $ 6,327$ 3,513
Short-term investments 9,635 22,877
Accounts receivable, net 7,505 5,574
Inventories 170 325
Prepaid expenses and other assets 2,955 2,677
------- -------
Total current assets26,592 34,966
Property and equipment, net1,788 1,297
Patents and other intangibles, net 1,638 1,526
Long-term marketable investment
securities 18,924 18,795
Intangibles associated with
acquisition, net 16,294 --
Other assets 7,802 8,910
------- -------
TOTAL ASSETS $ 73,038 $ 65,494
======= =======
LIABILITIES
Accounts payable $ 1,197$ 803
Accrued expenses3,290 2,691
Deferred revenue1,627 1,207
Income taxes payable -- 680
Current portion of capital
lease obligations348 112
------- -------
Total current liabilities 6,462 5,493
Capital lease obligations 19 76
Deferred tax liabilities -- 383
------- -------
TOTAL LIABILITIES 6,481 5,952
STOCKHOLDERS' EQUITY 66,557 59,542
------- -------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 73,038 $ 65,494
======= =======
Contact:
Macrovision Corporation
Victor Viegas, 408/743-8600
Bill Krepick, 408/743-8600
[email protected]
|