![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Friday, May 07, 2004 4:48:49 PM
>>>>>>>>>>
MUSIC TECHNOLOGY
Revenues from our music copy protection technology products were 3.1% and 2.7% of our net revenues in the quarters ended March 31, 2004 and 2003, respectively. Currently, substantially all of our music copy protection technology revenue is from international territories. Additional product features, currently under development, may be required for the product to be accepted in the United States. We believe that revenues from our music copy protection technology products may increase in absolute terms as more customers in more geographic territories adopt our technology.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
NET REVENUES. Our net revenues increased 35.4% from the first quarter of 2003 to the first quarter of 2004. This increase is primarily driven by increased revenues in our video and software technology products. Video's DVD copy protection revenues increased $3.6 million or 25.9% from the first quarter of 2003 to the first quarter of 2004, due primarily to the continued strong growth of the DVD format and continued high penetration among Hollywood studio customers. In addition, during the first quarter of 2004, we recognized approximately $2.2 million of revenue from studio volume replicated during the fourth quarter of 2003. We were not able to record this revenue in the fourth quarter of 2003 due to delays in payment of amounts resulting from a prolonged contract negotiation. The increase in DVD revenues was partially offset by continuing decreases in videocassette copy protection revenues. Revenues from videocassette copy protection decreased $779,000, or 44.8% from the first quarter of 2003 to the first quarter of 2004, reflecting the continuing trend of Hollywood studios to discontinue copy protecting or more selectively copy protect their VHS releases. Digital PPV copy protection revenues increased $1.1 million or 38.2% from the first quarter of 2003 to the first quarter of 2004, due to increased demand for digital set-top boxes and an increase in usage fees. PC Games revenues decreased $223,000 or 20.0% from the first quarter of 2003 to the first quarter of 2004 due to decreasing volumes and per unit pricing received from a number of customers. Music revenues have increased $412,000 or 54.1% from the first quarter of 2003 to the first quarter of 2004 due to increased market acceptance of our CDS-100 and CDS-200 products by the music labels. Revenues from our software technologies group increased $5.8 million or 76.6% from the first quarter of 2003 to the first quarter of 2004, primarily due to increased market penetration.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
In November 2002, we acquired the assets and operations of Midbar for approximately $17.8 million in cash and related acquisition costs. In addition, we are subject to an additional maximum payout of $8.0 million based on a percentage of revenues derived from our sales of music technology products through December 31, 2004. During the quarter ended March 31, 2004, we paid $723,000 of such contingent consideration in cash relating to the second half of 2003.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Net cash provided by financing activities was $2.4 million and $1.2 million in the first quarters of 2004 and 2003, respectively. The net cash provided by financing activities are from proceeds of stock option exercises and the employee stock purchase plan. In May 2002, our Board of Directors authorized a share repurchase program, which allows us to purchase up to 5.0 million shares in the open market from time-to-time at prevailing market prices, through block trades or otherwise, or in negotiated transactions off the market, at the discretion of our management. Our repurchases of shares of common stock have been recorded as treasury stock and resulted in a reduction of stockholders' equity. We did not repurchase any treasury stock in the first quarters of 2004 and 2003. As of March 31, 2004, 2.0 million shares remained authorized for repurchase.
At March 31, 2004, we had $63.0 million in cash and cash equivalents, $112.6 million in short-term investments and $104.1 million in long-term marketable investment securities, which includes $24.9 million in fair market value of our holdings in Digimarc. We have no material commitments for capital expenditures but anticipate that capital expenditures for the next 9 months will aggregate approximately $3.9 million. We also have future minimum lease payments of approximately $36.2 million under operating leases. We believe that the current available funds and cash flows generated from operations will be sufficient to meet our working capital and capital expenditure requirements for the foreseeable future. We may also use cash to acquire or invest in businesses or to obtain the rights to use certain technologies
Peer To Peer Network aka Mobicard™ Launches AI Investor Chatbot Boosting Engagement & Lead Generation on Ihub • PTOP • Jul 15, 2024 8:30 AM
Greenlite Ventures Announces AI Integration into No Limit Platforms • GRNL • Jul 15, 2024 8:00 AM
Cannabix Technologies and Omega Laboratories Inc. Provide Positive Developments on Marijuana Breathalyzer Testing • BLO • Jul 11, 2024 8:21 AM
ECGI Holdings Enhances Board with Artificial Intelligence (AI) Expert Ahead of Allon Apparel Launch • ECGI • Jul 10, 2024 8:30 AM
Avant Technologies to Meet Unmet Needs in AI Industry While Addressing Sustainability Concerns • AVAI • Jul 10, 2024 8:00 AM
Panther Minerals Inc. Launches Investor Connect AI Chatbot for Enhanced Investor Engagement and Lead Generation • PURR • Jul 9, 2024 9:00 AM