Beaverton, Ore. – July 29, 2020 – Digimarc Corporation (NASDAQ: DMRC), creator of the Digimarc Platform for digital identification and detection, reported financial results for the second quarter ended June 30, 2020.
Second quarter 2020 financial results
Revenue for the second quarter of 2020 increased five percent to $6.5 million compared to $6.2 million in the second quarter of 2019. The increase in revenue was primarily a result of growth in service revenue from Government and Retail customers.
Operating expenses for the second quarter of 2020 decreased two percent to $11.9 million compared to $12.1 million in the same quarter a year ago. The primary contributors to the decrease in operating expenses were lower travel, consulting and marketing costs.
Operating loss for the second quarter of 2020 decreased eight percent to $7.5 million compared to $8.2 million in the second quarter of 2019, due to higher revenue and lower operating expenses.
Net loss for the second quarter of 2020 decreased six percent to $7.5 million or $(0.62) per diluted share compared to a net loss of $7.9 million or $(0.68) per diluted share in the same quarter a year ago.
At quarter-end, cash, cash equivalents and marketable securities totaled $30.5 million compared to $36.8 million at December 31, 2019. The change in cash and investments during the second quarter was nominal due to the proceeds from the Paycheck Protection Program loan, higher revenues and lower expenses.
Digimarc will hold a conference call today (Wednesday, July 29, 2020) 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 here and in the investor section of the company's website. The conference call script will also be posted to the company's website shortly before the call.
For those who wish to call in via telephone, please dial the number below at least five minutes before the scheduled start time:
Toll-Free Number: 866-562-9934
International Number: 706-679-0638
Conference ID: 7779319
If you have any difficulty connecting with the conference call, please contact Digimarc investor relations at 503-469-4762.
Digimarc Corporation (NASDAQ: DMRC) is a pioneer in the automatic identification of media, including packaging, other commercial print, digital images, audio and video. The Digimarc Platform provides innovative and comprehensive automatic identification software and services to simplify search and transform information discovery through unparalleled reliability, efficiency and security. The Digimarc Platform enables applications that benefit retailers and consumer brands, national and state government agencies, media and entertainment industries, and others. Digimarc is based in Beaverton, Oregon, with a growing supplier network around the world. Visit digimarc.com and follow us @digimarc to learn more about The Barcode of Everything®.
Except for historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include 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 regulatory factors. More detailed information about risk factors that may affect actual results are outlined in the company's Form 10-K for the year ended December 31, 2019, 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.
Sr. Director, Corporate Communications