Revenue for the third quarter of 2015 totaled $5.4 million compared to revenue of $6.9 million in the same quarter a year-ago. The decrease reflects $1.6 million of lower license revenue due to the end of payments from Verance Corporation in the fourth quarter of 2014, partially offset by growth in subscription revenue.
Operating expenses for the third quarter of 2015 decreased 4% to $7.8 million from $8.0 million in the same quarter a year-ago. The decrease was due to lower spending in research, development and engineering and general and administrative, partially offset by higher investment in sales and marketing related to market development and delivery of Digimarc Discover and Barcode.
Operating loss for the third quarter of 2015 totaled $4.5 million compared to an operating loss of $3.2 million in the same quarter a year-ago. The higher operating loss is due to lower license revenue.
Net loss for the third quarter of 2015 totaled $4.5 million or $(0.54) per diluted share, compared to a net loss of $2.0 million or $(0.28) per diluted share in the third quarter of 2014. The higher net loss is largely due to $1.6 million lower license revenue in the third quarter of this year and $1.3 million of income tax benefits recognized in the third quarter of last year.
Cash, cash equivalents and marketable securities totaled $43.0 million at September 30, 2015, compared to $34.0 million at June 30, 2015. The increase reflects the sale of 341,949 shares of common stock during the quarter, which generated net proceeds of $12.9 million, less cash used in operations of $2.7 million.
Digimarc will hold a conference call later today (Wednesday, October 28, 2015) 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 via the investor section of the company's website at www.digimarc.com/investors/investor-events-and-webcasts.
For those who wish to listen to the call via telephone, please dial the number below at least five minutes prior to the scheduled start time:
Toll-Free Number: 866-562-9934
International Number: 706-634-1493
Conference ID: 27179683
If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is the inventor of the Digimarc Barcode. The Digimarc Barcode enables industrial scanners, smartphones, tablets, and other computer interfaces to reliably, efficiently and economically identify traditional barcoded items, along with many other media objects. Digimarc Barcodes are imperceptible to humans and do all that visible barcodes do, but even better, and can be applied to virtually all forms of media. These remarkable capabilities have allowed Digimarc and its business partners to supply a wide range of patented consumer engagement, media management, and security solutions across multiple consumer and government industry sectors. Digimarc owns an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media object discovery, and intuitive computing more generally. Digimarc develops and delivers solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information and the latest news, please visit www.digimarc.com and follow us on Twitter @DigimarcCorp.
With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements and any related inferences regarding growth in subscription revenue, lower license revenue, lower spending in research, development and engineering and general and administrative and higher investment in sales and marketing, and other 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/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company's Form 10-K for the year ended December 31, 2014 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.
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