Digimarc Corporation Reports Second Quarter Results.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--July 18, 2001 Digimarc Corporation (Nasdaq:DMRC DMRC Digimarc Corporation (stock symbol) DMRC Delhi Metro Rail Corporation (India) DMRC Digital Mobile Radio Communications ), the world leader in digital watermark A pattern of bits embedded into a file used to identify the source of illegal copies. For example, if a digital watermark is placed into a master copy of an audio CD or a DVD movie, then all copies of that disc are uniquely identified. technology and applications, today announced its fourth consecutive quarter of record revenues of $4.2 million for the quarter ended June 30, 2001. These record revenues for the second quarter of 2001 represent a 56 percent increase over the $2.7 million of revenues in the comparable period of 2000. Net loss per share for the second quarter of 2001 was $(0.22) based on 16.64 million weighted average basic and diluted shares outstanding for the quarter. This loss compares with a net loss per share of $(0.48) based on 12.92 million weighted average basic and diluted shares outstanding for the comparable period of 2000. "Q2 reflected continued progress in strengthening our market segments and expanding the reach of our technology into new business opportunities," said Bruce Davis This article is about the American football player. For the American businessman, see Bruce Davis (video game industry). Bruce Davis (born June 21, 1956, in Rutherfordton, North Carolina) is a former professional American football player. , Digimarc CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We continue to take a conservative approach in monitoring expenses necessary to achieve our business objectives and revenue forecast. Under the current economic conditions, we are pleased with our overall performance in Q2 and our continuing growth." Davis continued, "All areas of the business showed steady performance during the second quarter. We are especially pleased to report that we were issued two new patents and received notice of allowance of 12 new patents in copyright protection for print, video and audio watermarking A watermark embedded within an audio stream to identify its origination. See digital watermark. , adding to our already strong portfolio of digital watermarking Digital watermarking is a technique which allows an individual to add hidden copyright notices or other verification messages to digital audio, video, or image signals and documents. patents. During the quarter, we further expanded deployment of our connected content solutions as a means to integrate print and online marketing efforts, including entering the trading card and collectors segment in partnership with The Upper Deck Co. and the interactive kiosk An Interactive kiosk is a computer terminal that provides information access via electronic methods. Interactive kiosks sometimes resemble telephone booths, but can also be used while sitting on a bench or chair. markets with NBG NBG National Bank of Greece NBG Nederlands Bijbelgenootschap NBG National Bank of Georgia NBG Need Before Greed (Everquest game slang) NBG National Bicycle Greenway NBG Naval Beach Group NBG Natural Born Gamers Solutions and SeePoint Technology. Within our Media Commerce line of business, there was big news as we laid the foundation for expansion into the video marketplace with the licensing of our watermarking to Philips Digital Networks for broadcast monitoring systems and the establishment of the Video Watermarking Group, which includes Hitachi, Macrovision, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , Philips, Pioneer and Sony, to provide copy protection solutions to digital recording devices. Other Q2 highlights include enhancement of the Digimarc MarcSpider(R) online image tracking through a partnership with Cobion, a leading global online image searching and detection company. Meanwhile, our Secure Documents business line continues to make strides in new product development, as well as strengthening existing partner relationships." Digimarc will hold its Q2 2001 earnings conference call today, beginning at 5:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The call will feature Bruce Davis, CEO, Paul Gifford Paul Gifford, B.A. (Wellington), M.Litt. (Oxon), b. 1944, is Professor of African Christianity in the School of Oriental and African Studies (University of London). Publications Books: author
As it has in the past, Digimarc will open the event to the general public and the media by broadcasting the call live via the Internet at www.digimarc.com. The broadcast of the Q2 conference call is available at Digimarc's Web address on the "Q2 Earnings Release Conference Call" icon. This Webcast will also be archived for later listening at www.digimarc.com or www.streetfusion.com. About Digimarc Digimarc Corp., based in Tualatin, Ore., (Nasdaq:DMRC), is the world leader in digital watermark technology and applications. Digimarc's patented digital watermarking technologies allow digital data to be embedded Inserted into. See embedded system. imperceptibly im·per·cep·ti·ble adj. 1. Impossible or difficult to perceive by the mind or senses: an imperceptible drop in temperature. 2. in traditional and digital media content, including photographic or artistic images, movies, music, packaging, printed materials, promotional items Promotional items or promotional products refers to articles of merchandise that are used in marketing and communication programs. The items are usually imprinted or decorated with a company's name, logo or message, using techniques such as Embroidery, Silkscreen, or , value documents, tickets and holograms, among others. The company continues to build a pervasive new communications platform by developing an increasing array of diverse media applications. These applications benefit a broad range of consumers, corporations and government institutions, enhancing the protection of copyrights, security of value documents, management of media and fostering integrated marketing and e-commerce for many goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . Digimarc's leading customers include creative professionals, major media companies and central banks This is a list of central banks. Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z . The company's products include Digimarc ImageBridge, a means to communicate copyrights in digital images, track the images on the Internet and facilitate online licensing and related e-commerce; Digimarc MediaBridge, a fundamentally new way for consumers to access the Internet that transforms printed materials into direct portals to relevant destinations on the Internet; and a system, developed in cooperation with a consortium of leading central banks, that deters the use of personal computers in the counterfeiting counterfeiting, manufacturing spurious coins, paper money, or evidences of governmental obligation (e.g., bonds) in the semblance of the true. There must be sufficient resemblance to the genuine article to deceive a person using ordinary caution. of value documents. Digimarc is also a member of the Video Watermarking Group (VWM VWM Visual Working Memory VWM Vineyard and Winery Management (magazine) VWM Leukoencephalopathy with Vanishing White Matter VWM Valley West Mall VWM Virtual Warehouse Manager VWM Vesa Wall Mount VWM Virtual Window Manager Group), which includes Hitachi, Macrovision, NEC, Philips, Pioneer and Sony, to provide video copy prevention and play control solutions for digital recording devices. In addition, Digimarc video watermarking technology is being licensed for innovative new applications, such as broadcast monitoring. Digimarc has more than 225 U.S. patents pending and 24 issued. Digimarc's vision is to have its watermarking technology become a standard feature of all media content. Please go to www.digimarc.com for more company information. Securities Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. All statements contained herein that are not statements of historical fact, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to certain assumptions, risks and uncertainties. Although Digimarc believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ materially from those expectations or from historical results. Such risks and uncertainties are outlined in Digimarc's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for 2000 and its most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. , each as filed with the Securities and Exchange Commission. Digimarc is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. Digimarc is a registered trademark of Digimarc Corporation. All other trademarks are the property of their respective owners.
Digimarc Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
-------- -------- -------- --------
Revenues: (Unaudited) (Unaudited)
Secure Documents $ 2,678 $ 2,638 $ 4,953 $ 5,179
Digimarc MediaBridge 317 26 622 26
Media Commerce 1,212 40 2,367 69
-------- -------- -------- --------
Total revenues 4,207 2,704 7,942 5,274
Cost of revenues 2,097 1,821 3,691 3,332
-------- -------- -------- --------
Gross profit 2,110 883 4,251 1,942
50.2% 32.7% 53.5% 36.8%
Operating expenses:
Research, development
and engineering 1,413 894 3,091 1,731
Selling, general and
administrative 5,481 6,941 11,299 10,295
Stock-based compensation 477 543 1,020 1,086
-------- -------- -------- --------
Total operating expenses 7,371 8,378 15,410 13,112
-------- -------- -------- --------
Operating loss (5,261) (7,495) (11,159) (11,170)
Other income (expense), net 1,535 1,310 3,558 2,521
-------- -------- -------- --------
Loss before provision for
income taxes (3,726) (6,185) (7,601) (8,649)
Provision for income taxes - - - -
-------- -------- -------- --------
Net loss $(3,726) $(6,185) $(7,601) $(8,649)
======== ======== ======== ========
Net loss per share - basic
and diluted $ (0.22) $ (0.48) $ (0.46) $ (0.67)
Weighted average shares
- basic and diluted 16,643 12,917 16,526 12,825
Digimarc Corporation
Condensed Balance Sheets
(in thousands)
June 30, Dec. 31,
2001 2000
---------- ----------
Assets Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 103,520 $ 72,454
Short-term investments 26,262 63,418
Accounts receivable, net 3,037 1,609
Other current assets 1,370 1,444
---------- ----------
Total current assets 134,189 138,925
Property and equipment, net 3,061 3,522
Other assets 23 32
---------- ----------
Total assets $ 137,273 $ 142,479
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,048 $ 1,936
Accrued payroll and related costs 861 805
Deferred revenue 920 790
Other current liabilities 219 191
---------- ----------
Total current liabilities 4,048 3,722
Other long-term liabilities 32 30
Stockholders' equity 133,193 138,727
---------- ----------
Total liabilities and stockholders' equity $ 137,273 $ 142,479
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