Macrovision Beats Estimates

The company also acquires eMeta.
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Macrovision

(MVSN)

, an anti-piracy software maker, said its fourth-quarter profits fell 72% from a year ago, hurt by amortization and restructuring charges.

The Santa Clara, Calif.-based company earned $4.5 million, or 9 cents a share, for the quarter, compared with $15.8 million, or 31 cents a share, a year ago. Adjusted for items, the company earned $18.5 million or 36 cents a share in the latest quarter. Analysts polled by Thomson First Call were estimating earnings of 28 cents a share in the most recent quarter.

Fourth-quarter revenue rose 2.3% from a year ago to $61 million.

Excluding charges and including the impact of the just announced eMeta acquisition, the company expects to earn 17 cents a share to 19 cents a share on revenue of $52 million to $54 million for the first quarter of 2006 and 93 cents a share to 97 cents a share on revenue of $235 million to $245 million for 2006. Analysts are estimating earnings of 97 cents a share on revenue of $225.3 million.

Operating profit fell 30.4% to $14.5 million and operating profit margin declined by 1120 basis points to 23.8%.

"We are pleased to be able to report record revenues for our business even with the organizational changes we conducted in the fourth quarter," the company said. "We have seen significant progress and revenue strength in our software business which has more than offset the expected declines in DVD and other Entertainment revenues on a quarter over quarter and year over year basis."

The company also said that it has reached an agreement to purchase eMeta for $35 million in a cash transaction. The deal is expected to close by Feb. 28, 2006. eMeta, a privately held company, provides software solutions that enable companies to control and sell digital goods and services online.

Early Thursday, Macrovision rose 20 cents to $18.32.

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