Stock to Watch : Digimarc Corporation (NASDAQ:DMRC)

Digimarc Corporation (NASDAQ:DMRC) augmented 14.63% to trade at $ 29.3 in the recent trading session and its total traded volume was 119229 shares versus to an average volume of 86.80K. The company has market cap of $302.12M. The stock has positive monthly performance of 35.45% while its yearly performance remained -18.99%.

Digimarc Corporation (NASDAQ:DMRC), the inventor of the Intuitive Computing Platform (ICP™) featuring Digimarc Barcode, reported financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Financial Results

Revenue for the fourth quarter of 2018 totaled $5.2 million compared to $4.9 million in the same quarter a year-ago. The increase in revenue was due to higher service, subscription and license revenue relative to the same quarter a year-ago.

Operating expenses for the fourth quarter of 2018 totaled $11.4 million compared to $11.5 million in the same quarter a year-ago. The decrease in operating expenses was due to lower general and administrative and research, development and engineering expenses, offset by higher investment in sales and marketing.

Operating loss for the fourth quarter of 2018 totaled $8.3 million compared to $8.7 million in the same quarter a year-ago. The lower operating loss was primarily due to higher revenue and lower operating expenses.

Net loss for the fourth quarter of 2018 totaled $8.0 million or $(0.70) per diluted share compared to a net loss of $8.4 million or $(0.76) per diluted share in the same quarter a year-ago.

At quarter-end, cash, cash equivalents and marketable securities totaled $43.7 million, compared to $49.4 million at September 30, 2018.

Full Year 2018 Financial Results

Revenue for the full year 2018 totaled $21.2 million compared to $25.2 million in 2017. The decrease in revenue was due to lower license revenue reflecting the impact of the $3.5 million upfront license fee realized in the third quarter of 2017 and $0.9 million of royalties realized in the first nine months of 2017 from the licensee. In exchange for the upfront license fee, the company waived any future royalty obligations from this licensee in one of the licensed fields of use. The decrease in license revenue was partially offset by an increase in subscription revenue reflecting growth in Digimarc Discover and Barcode revenue offset by lower Guardian revenue.

Operating expenses for the full year 2018 totaled $46.3 million compared to $43.2 million in 2017. The increase in operating expenses was primarily due to higher investment in sales and marketing as the company continues to address important opportunities in market development and delivery of Digimarc Discover and Digimarc Barcode.

Operating loss for the full year 2018 totaled $33.5 million compared to an operating loss of $26.6 million in 2017. The higher operating loss was primarily due to lower license revenue and higher operating expenses.

Net loss for the full year 2018 totaled $32.5 million or $(2.86) per diluted share, compared to a net loss of $25.8 million or $(2.44) per diluted share in 2017.

Digimarc Corporation (NASDAQ:DMRC) stock demonstrated a positive move of 9.09% in previous 5 days graph. Its quarterly performance remained in the green with the percentage of 18.33%, while its year to date performance showed that the stock jumped overall 76.28% The 52 week range of the stock was $14.03 – 33.40.

The Company has an insider ownership of 2.80% and institutional ownership remained 63.50%. Its return on investment (ROI) for the last 12 month was -19.30% and its return on equity (ROE) of -45.20% for the last 12 months while return on assets (ROA) is at -42.20%.

Leave a Reply

Your email address will not be published. Required fields are marked *