Macrovision Reports Q3 Net Revenue, Earnings Increases; Ryan Gives Up CEO Spot to Krepick29 Oct, 2001 By: Hive News
Sunnyvale, Calif.-based Macrovision Corporation said Monday that John O. Ryan, the company's co-founder, chairman and c.e.o., has relinquished the c.e.o. position. Ryan will continue to serve as the company's chairman. The change will allow Ryan to concentrate on the expansion of thecompany's business, technology and intellectual property base, the company said in a press release.
William A. Krepick, the company's president and c.o.o., will become c.e.o. effective immediately. Krepick joined Macrovision in 1988 as v.p. of sales andmarketing, and has served as president and c.o.o. andas a company director of the since 1995.
Macrovision Corporation also announced Monday that third quarter 2001 net revenues were $23 million, compared with $20.4 million in the third quarter of 2000, an increase of 13%.
Pro forma earnings (beforeamortization of goodwill, amortization of deferred stock-based compensation, acquisition costs relating to GLOBEtrotter and impairmentlosses on investments) were $10.6 million or 19% higher than the $8.9 million recorded in last year's third quarter. Pro forma dilutedearnings per share for the quarter rose to $0.20, which was 18% higher than the comparable earnings per share of $0.17 in the third quarter a year ago.
Net income (including amortization of goodwill, amortization of deferred stock-based compensation, acquisition costs relating toGLOBEtrotter and impairment losses on investments) for the third quarter of 2001 was $6.4 million. Diluted earnings per share for the quarter was $0.12, up from $0.09 or 33% from the prior quarter a year ago.
Cash and cash equivalents, short-term investments and long-term marketable securities were $224.1 million as of Sept. 30, 2001.
These results reflect the inclusion of the operations of GLOBEtrotter Software, Inc., which was acquired on August 31, 2000. The GLOBEtrotter transaction has been accounted for using the "pooling of interests"method. As a result, the consolidated financial statements for periodsprior to the combination have been restated to include the accounts and results of operations of GLOBEtrotter, the company said.
"We're pleased with our third-quarter results," said Ian Halifax, Macrovision c.f.o. "In spite of a challenging economic environment and the events of September 11th, the company delivered bottom line results in line with guidance provided last quarter. The third quarter was important to us for a number of reasons, notably the signing of our 200th DVD manufacturer licensee for our DVD copy protection technology, the announcement of our partnership with Digital River to offer expandedDRM-enabled e-commerce product delivery options for software publishers and our investments in Widevine Technologies, Digital Fountain and NTRU Cryptosystems.
"Given the climate of unprecedented political and economic uncertainty, we estimate fourth quarter revenues and pro forma earnings per share will be flat with Q3. We expect that seasonal strength in ourDVD business will be offset by softness in our GLOBEtrotter and digitalpay-per-view segments. We will provide detailed guidance on 2002 projections in a conference call in mid-January, in line with ourpractice this year," Halifax said.