Macrovision Corporation Reports Record Revenues and Pro Forma Earnings for Third Quarter 2004

Business Wire, Nov 1, 2004

SANTA CLARA, Calif. -- Last table, first column, TOTAL LIABILITIES should read 45,938 (sted 445,938). Macrovision Corporation (Nasdaq:MVSN) announced today that third quarter 2004 net revenues were a record $48.9 million, compared with $31.2 million in the third quarter of 2003, an increase of 57%. Pro forma earnings (before amortization of intangibles from acquisitions, non-cash deferred compensation expense, impairment gains and losses on investments, and in-process research and development write-offs) were $11.2 million or 21% higher than the $9.3 million recorded in last year's third quarter. Pro forma diluted earnings per share for the quarter were $0.22, or 16% higher than the comparable pro forma earnings per share of $0.19 in the third quarter a year ago.

Net income for the third quarter of 2004 was $1.3 million. Diluted earnings per share for the quarter were $0.03.

Cash and cash equivalents, restricted cash, short-term investments and long-term marketable securities were $224.1 million as of September 30, 2004.

"We are very pleased with our third quarter results," said Ian Halifax, CFO at Macrovision. "Our revenues benefited from continued strong performance in our enterprise software value management business, and our DVD and pay-per-view (PPV) copy protection business. The third quarter was important to us for a number of reasons, including the closing of our acquisition of InstallShield(R) Software Corporation; additions to the customer base in our ISV and enterprise software value management business; expansion of our global customer support services to meet the needs of the growing worldwide customer base; and the release of our AdminStudio(TM) 6 solution suite. Revenues for the fourth quarter of 2004 are estimated to be in the $50-$53 million range, with pro forma EPS of $0.25-$0.27. For the full year 2004, we anticipate revenues of $172M-$175M, with pro forma EPS of $0.88-$0.90. These projections include the impact of the InstallShield acquisition for the second half of the year."

The Company continues to use pro forma reconciliation condensed consolidated statements of income in the presentation of financial results and earnings guidance. Management believes that this presentation may be more meaningful in analyzing the results of operations and income generation, as non-cash, non-operating or non-recurring items (such as amortization of intangibles from acquisitions, amortization of deferred stock-based compensation, impairment gains and losses on investments, and in-process research and development write-offs) are excluded from the pro forma earnings calculation. This presentation may be considered more indicative of our ongoing operational performance. The tables below present the differences between pro forma earnings and net income on an absolute and per share basis.

Immediately following the Q3 earnings release, Macrovision will hold an investor conference call on November 1, from 5:00 p.m. to 6:00 p.m. ET. Investors and analysts interested in participating in the conference are welcome to call 800-218-0204 (or international 1 303-262-2131) and reference the Macrovision call.

The conference call can also be accessed via live Webcast at www.macrovision.com or www.fulldisclosure.com (or www.streetevents.com for subscribers) on November 1, 2004 at 5:00 p.m. ET. Approximately 1-2 hours after the live Webcast ends, the on-demand Webcast of Macrovision's earnings conference call can be accessed until November 8, 2004.

Investors and analysts interested in listening to a recorded replay of the conference are welcome to call 800-405-2236 (or international 1 303-590-3000) and enter passcode 11012112#. Access to the replay is available through November 2, 2004. The conference call script will be posted on the Company's website approximately 48 hours following the call and will be posted for 30 days.

About Macrovision

Macrovision develops and markets digital product value management solutions for content publishers, software publishers, and enterprise IT departments. Macrovision's content protection technologies are embedded in over 8.5 billion DVD, VHS, and CD units representing over $115 billion of protected entertainment content. In addition, over 280 million DVD devices and digital set-top boxes contain Macrovision's technology. Our software solutions are deployed on more than 500 million desktops worldwide, and over $70 billion of software has been FLEXenabled. Macrovision holds a total of 759 issued and 479 pending United States and international patents, and continues to increase its patent portfolio with new and innovative technologies in related fields. Macrovision has its corporate headquarters in Santa Clara, California, key development labs and sales/service centers in Schaumburg, IL and the UK, and other international offices in Amsterdam, Tel Aviv, Tokyo, Hong Kong, Taipei and Seoul. More information about Macrovision can be found at www.macrovision.com.

Note to Editors: For more information on Macrovision Corporation and its products, please visit www.macrovision.com.