DMRC
$40.75
Digimarc
($.45)
(1.09%)
Earnings Details
1st Quarter March 2017
Wednesday, April 26, 2017 4:05:00 PM
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Summary

Digimarc (DMRC) Recent Earnings

Digimarc (DMRC) reported a 1st Quarter March 2017 loss of $0.61 per share on revenue of $6.1 million. The consensus estimate was a loss of $0.66 per share on revenue of $5.9 million. Revenue grew 9.2% on a year-over-year basis.

Digimarc Corporation develops solutions, licenses intellectual property, and provides development services to global business partners across industries.

Results
Reported Earnings
($0.61)
Earnings Whisper
-
Consensus Estimate
($0.66)
Reported Revenue
$6.1 Mil
Revenue Estimate
$5.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Digimarc Reports First Quarter 2017 Financial Results

Digimarc Corporation (DMRC) reported financial results for the first quarter ended March 31, 2017.

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First Quarter 2017 Financial Results Revenue for the first quarter of 2017 totaled $6.1 million compared to $5.6 million in the same quarter a year-ago. The increase was primarily due to higher service revenue.

Operating expenses for the first quarter of 2017 totaled $10.2 million compared to $8.9 million in the first quarter of 2016. The increase was primarily due to higher investments in sales, marketing, and engineering as the company continues to address important opportunities in market development and delivery for Digimarc Discover and Digimarc Barcode.

Operating loss for the first quarter of 2017 totaled $6.4 million compared to an operating loss of $5.5 million in the same quarter a year-ago. The higher operating loss was primarily due to higher operating expenses.

Net loss for the first quarter of 2017 totaled $6.2 million or $(0.61) per diluted share, compared to a net loss of $5.4 million or $(0.64) per diluted share in the first quarter of 2016.

At quarter-end, cash, cash equivalents and marketable securities totaled $56.2 million, compared to $60.5 million at December 31, 2016.

Conference Call Digimarc will hold a conference call later today (Wednesday, April 26, 2017) to discuss these results, as well as provide an update on market conditions and execution of strategy. Chairman and CEO Bruce Davis and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s presentation.

The conference call will be broadcast live and available for replay via the investor section of the company’s website here.

For those who wish to listen to the call via telephone, please dial the number below at least five minutes prior to the scheduled start time:

Toll-Free Number: 866-562-9934 International Number: 706-679-0638 Conference ID: 8340849

If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.

About Digimarc Digimarc Corporation (DMRC) is a pioneer in the automatic identification of everyday objects such as product packaging and virtually any media, including print, images and audio. Based on the patented Intuitive Computing Platform (ICP(TM)), Digimarc provides innovative and comprehensive automatic recognition technologies to simplify search, and transform information discovery through unparalleled reliability, efficiency and security. Digimarc has a global patent portfolio, which includes approximately 1,100 U.S. and foreign patents and pending patent applications. These innovations include state-of-the-art identification technology, Digimarc Barcode, as well as Digimarc Discover? software for barcode scanning, image recognition, and more. Digimarc is based in Beaverton, Oregon, with technologies deployed by major retailers and consumer brands, global banks, U.S. states, film companies and professional sports franchises, among others. Visit digimarc.com and follow us @digimarc to learn more about The Barcode of Everything(TM).

Forward-looking Statements With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements and any related inferences regarding market opportunities for Digimarc Discover and Digimarc Barcode, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts" and "continue" or other derivations of these or other comparable terms. These forward-looking statements are statements of management’s opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results are set forth in the company’s Form 10-K for the year ended December 31, 2016 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

Digimarc Corporation
Consolidated Income Statement Information
(in thousands, except per share amounts)
(Unaudited)
Three-Month Information
March 31,
March 31,
2017
2016
Revenue:
Service
$
3,696
$
3,250
Subscription
1,445
1,463
License
950
867
Total revenue
6,091
5,580
Cost of revenue:
Service
1,635
1,432
Subscription
556
662
License
118
96
Total cost of revenue
2,309
2,190
Gross profit:
Service
2,061
1,818
Subscription
889
801
License
832
771
Total gross profit
3,782
3,390
Gross margin:
Service
56%
56%
Subscription
62%
55%
License
88%
89%
Percentage of gross profit to total revenue
62%
61%
Operating expenses:
Sales and marketing
3,992
2,955
Research, development and engineering
3,459
3,305
General and administrative
2,385
2,170
Intellectual property
392
434
Total operating expenses
10,228
8,864
Operating loss
(6,446)
(5,474)
Other income, net
118
46
Loss before income taxes
(6,328)
(5,428)
Benefit (provision) for income taxes
110
(7)
Net loss
$
(6,218)
$
(5,435)
Earnings (loss) per common share:
Loss per common share - basic
$
(0.61)
$
(0.64)
Loss per common share - diluted
$
(0.61)
$
(0.64)
Weighted average common shares outstanding - basic
10,161
8,533
Weighted average common shares outstanding - diluted 10,161
8,533
Digimarc Corporation
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
March 31,
December 31,
2017
2016
Assets
Current assets:
Cash and cash equivalents (1)
$
13,135
$
11,638
Marketable securities (1)
43,050
44,496
Trade accounts receivable, net
3,804
5,078
Other current assets
1,625
1,695
Total current assets
61,614
62,907
Marketable securities (1)
-
4,392
Property and equipment, net
3,767
3,570
Intangibles, net
6,399
6,422
Goodwill
1,114
1,114
Other assets
276
331
Total assets
$
73,170
$
78,736
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and other accrued liabilities $
1,398
$
1,523
Deferred revenue
2,448
2,923
Total current liabilities
3,846
4,446
Deferred rent and other long-term liabilities
1,066
956
Total liabilities
4,912
5,402
Commitments and contingencies
Shareholders’ equity:
Preferred stock
50
50
Common stock
11
11
Additional paid-in capital
122,152
120,985
Accumulated deficit
(53,955)
(47,712)
Total shareholders’ equity
68,258
73,334
Total liabilities and shareholders’ equity
$
73,170
$
78,736
(1) Aggregate cash, cash equivalents, short- and long-term marketable securities was $56,185 and $60,526
at March 31, 2017 and December 31, 2016, respectively.
Digimarc Corporation
Consolidated Cash Flow Information
(in thousands)
(Unaudited)
Three-Month Information
March 31,
March 31,
2017
2016
Cash flows from operating activities:
Net loss
$
(6,218)
$
(5,435)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment
299
339
Amortization and write-off of intangibles
257
290
Stock-based compensation
1,503
1,283
Changes in operating assets and liabilities:
Trade accounts receivable
1,274
2,320
Other current assets
70
91
Other assets
55
24
Accounts payable and other accrued liabilities
128
(663)
Deferred revenue
(498)
(457)
Net cash used in operating activities
(3,130)
(2,208)
Cash flows from investing activities:
Purchase of property and equipment
(605)
(490)
Capitalized patent costs
(200)
(217)
Maturity of marketable securities
16,399
14,277
Purchase of marketable securities
(10,561)
(6,081)
Net cash provided by investing activities
5,033
7,489
Cash flows from financing activities:
Exercise of stock options
177
145
Purchase of common stock
(583)
(520)
Net cash used in financing activities
(406)
(375)
Net increase in cash and cash equivalents (2)
$
1,497
$
4,906
Cash, cash equivalents and marketable securities at beginning of period
60,526
39,186
Cash, cash equivalents and marketable securities at end of period
56,185
35,896
(2)
Net decrease in cash, cash equivalents and marketable securities
$
(4,341)
$
(3,290)

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/digimarc-reports-first-quarter-2017-financial-results-300446376.html

SOURCE Digimarc Corporation

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