Digimarc Reports Third Quarter 2016 Financial Results
Digimarc Corporation (DMRC) reported financial results for the third quarter ended September 30, 2016.
Third Quarter 2016 Financial Results Revenue for the third quarter of 2016 totaled $5.6 million compared to $5.4 million in the same quarter a year-ago. The increase was primarily due to higher service revenue.
Operating expenses for the third quarter of 2016 totaled $8.7 million compared to $7.8 million in the third quarter of 2015. The increase was primarily due to higher investments in sales and marketing as the company continues to address important opportunities in market development and delivery for Digimarc Discover and Digimarc Barcode.
Operating loss for the third quarter of 2016 totaled $5.3 million compared to an operating loss of $4.5 million in the same quarter a year-ago. The higher operating loss was primarily due to higher operating expenses.
Net loss for the third quarter of 2016 totaled $5.2 million or $(0.55) per diluted share, compared to a net loss of $4.5 million or $(0.54) per diluted share in the third quarter of 2015.
At quarter-end, cash, cash equivalents and marketable securities totaled $66.3 million, compared to $31.9 million at June 30, 2016. The increase was due to proceeds from the sale of common stock in an underwritten public offering completed in August 2016.
Conference Call Digimarc will hold a conference call later today (Wednesday, November 2, 2016) 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 managements presentation.
The conference call will be broadcast live and available for replay via the investor section of the companys 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: 8340839
If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
About Digimarc Digimarc Corporation (DMRC), based in Beaverton, Oregon, is the inventor of Digimarc Discover? software and the imperceptible Digimarc Barcode for automatically identifying and interacting with virtually any media. Digimarc Discover software enables industrial scanners, smartphones, tablets and other computer interfaces to reliably, efficiently and economically identify traditional barcoded items, along with many other media objects. Digimarc Barcodes are imperceptible to people and do all that visible barcodes do, but perform better. They can be applied to virtually all forms of media. These remarkable capabilities have allowed Digimarc and its business partners to supply a wide range of patented consumer engagement, media management and security solutions across multiple consumer and government industry sectors. Digimarc owns an extensive intellectual property portfolio, with patents in digital watermarking, content identification and management, media object discovery, and intuitive computing more generally. For more information and the latest news, please visit www.digimarc.com and follow on Twitter at @Digimarc.
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 managements 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 companys Form 10-K for the year ended December 31, 2015 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect managements 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.
Consolidated Income Statement Information
(in thousands, except per share amounts)
Three Month Information
Nine Month Information
Total cost of revenue
Total gross profit
Percentage of gross profit to total revenue
Sales and marketing
Research, development and engineering
General and administrative
Total operating expenses
Other income, net
Loss before income taxes
Provision for income taxes
Earnings (loss) per common share:
Loss per common share - basic
Loss per common share - diluted
Weighted average common shares outstanding - basic
Weighted average common shares outstanding - diluted 9,506
Consolidated Balance Sheet Information
Cash and cash equivalents (1)
Marketable securities (1)
Trade accounts receivable, net
Other current assets
Total current assets
Marketable securities (1)
Property and equipment, net
Liabilities and Shareholders Equity
Accounts payable and other accrued liabilities $
Total current liabilities
Deferred rent and other long-term liabilities
Commitments and contingencies
Additional paid-in capital
Total shareholders equity
Total liabilities and shareholders equity
(1) Aggregate cash, cash equivalents, short- and long-term marketable securities was $66,308 and $39,186 at September 30, 2016 and December 31, 2015, respectively.
Consolidated Cash Flow Information
Cash flows from operating activities:
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization and write-off of property and equipment
Amortization and write-off of intangibles
Change in allowance for doubtful accounts
Changes in operating assets and liabilities:
Trade accounts receivable
Other current assets
Accounts payable and other accrued liabilities
Net cash used in operating activities
Cash flows from investing activities:
Purchase of property and equipment
Capitalized patent costs
Maturity of marketable securities
Purchase of marketable securities
Net cash used in investing activities
Cash flows from financing activities:
Issuance of common stock, net of issuance costs
Exercise of stock options
Purchase of common stock
Net cash provided by financing activities
Net increase in cash and cash equivalents (2)
Cash, cash equivalents and marketable securities at beginning of period
Cash, cash equivalents and marketable securities at end of period
Net increase in cash, cash equivalents and marketable securities
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SOURCE Digimarc Corporation