Rentrak Reports Fiscal 2009 Second Quarter Financial Results
— TV Essentials™ on Track for Commercial Launch in First Calendar Quarter of 2009 —
— Rentrak's Solid Balance Sheet and Cash Flow Generation Provide Flexibility and Stability in an Uncertain Economy —
PORTLAND, Ore., Nov 4, 2008 --
Rentrak Corp. (NASDAQ: RENT) today announced financial results for its fiscal second quarter ended September 30, 2008.Consolidated revenues grew 7 percent to $24.3 million in the second quarter of fiscal 2009 from $22.8 million in the second quarter of fiscal 2008.
- Revenues in the company's Advanced Media Information (AMI) segment increased 23 percent to $3.1 million from $2.5 million in the second quarter of fiscal 2008. The increase primarily reflects incremental revenues generated from new and existing customers of the company's Essentials Suite™ of media measurement services. The AMI segment represented approximately 13 percent of consolidated revenues and contributed approximately 30 percent of consolidated gross margin dollars in the second quarter of fiscal 2009.
- Revenues in the company's Pay-Per-Transaction® (PPT) segment grew 5 percent to $21.2 million, from $20.3 million in last year's comparable quarter, primarily reflecting higher volumes of units shipped during the quarter.
Selling and administrative expenses were $6.7 million, or 28 percent of revenues, in the second quarter of fiscal 2009, compared with $6.3 million, or 28 percent of revenues, during last year's fiscal second quarter. Operating income was $1.3 million for the second quarter of fiscal 2009, versus $1.6 million in the same period last year.
Net income totaled $842,000, or $0.08 per diluted share, in the second quarter of fiscal 2009, compared with $1.1 million, or $0.10 per diluted share, in last year's comparable period.
Rentrak's cash, cash equivalents and marketable securities balance grew to $36.8 million at September 30, 2008, from $31.8 million at March 31, 2008. Through the first six months of fiscal 2008, the company generated $6.1 million in cash from operating activities, compared with $2.6 million in cash from operating activities in the prior-year six month period.
Recent Operating Highlights- TV Essentials, the company's revolutionary linear TV measurement solution, on-target for first calendar quarter 2009 commercial launch. Industry feedback on TV Essentials is overwhelmingly positive;
- Selected by Virgin Media as content measurement partner for its first video on demand (VOD) dynamic advertising trial. Provides major positive implications for U.S. VOD business and validates unique ability to deliver accurate, census-level measurement data across all systems and technologies;
- Issued the State of VOD report, providing valuable insight into the fast growing, dynamic On Demand Television market.
“We are proud that Rentrak's business continues to show stability in this very difficult environment. Our second quarter results were solid, our balance sheet remains very strong, and we are continuing to generate the cash flow necessary to invest in and grow Rentrak's future,” said Rentrak Chairman and Chief Executive Officer Paul Rosenbaum. “There are many exciting things happening at Rentrak every single day, especially as we move closer to the commercial launch of TV Essentials. We are one-hundred percent on track with this important initiative, which will have a substantial impact on our industry by significantly improving the accuracy of measuring television viewing habits.”
Conference Call
Rentrak has scheduled a conference call for 2:00 p.m. (PT) November 4, 2008 to discuss the company's second quarter financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 800-638-5495 from the U.S. or Canada, or 617-614-3946 from international locations, passcode 15769138. This call is being webcast and can be accessed at Rentrak's web site at www.rentrak.com where it will be archived through November 4, 2009. An audio replay of the conference call is available through midnight November 11 by dialing 888-286-8010 from the U.S. or Canada, or 617-801-6888 from international locations, passcode 51574927.
About Rentrak Corporation (Nasdaq: RENT)
Rentrak Corporation is an industry-advancing media measurement and research company, serving the most recognizable names in the entertainment industry. Reaching across numerous platforms including box office, home entertainment, on-demand and linear television, broadband and mobile, Rentrak provides unique and actionable insight for our clients and partners. From the introduction of our revolutionary Pay-Per-Transaction® distribution and revenue-sharing system, which equipped Rentrak with the intelligence and ability to deal with large, complex data streams, to the company's exclusive Essentials™ suite of services, Rentrak has redefined digital audience measurement. Rentrak is headquartered in Portland, Oregon, with additional offices in Los Angeles, New York City and Miami/ Ft. Lauderdale. For more information on any of Rentrak's services, please visit www.rentrak.com.
Safe Harbor Statement
When used in this discussion, the words “anticipates,” “expects,” “intends” and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the company's ability to successfully manage expenses and run its business as efficiently as possible; the ability to successfully grow revenues, effectively manage costs, steadily generate cash and maintain strong and flexible balance sheet; the ability for Rentrak to create new and valuable products and services that best serve the company's customers and industry; the company's ability to monetize and reach the full potential of its development activities; and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect Rentrak's financial results include customer demand for movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers and retain existing customers, the company's success in maintaining its relationships with studios and other product suppliers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's customers continuing to comply with the terms of their agreements. Additional factors that could affect Rentrak's financial results are described in Rentrak's March 31, 2008 annual report on Form 10-K and subsequent quarterly reports filed with the Securities and Exchange Commission. Results of operations in any past period should not be considered indicative of the results to be expected for future periods.
