SAN FRANCISCO, Feb 25, 2010 (BUSINESS WIRE) -- OpenTV Corp. /quotes/comstock/15*!optv/quotes/nls/optv (OPTV 1.54, 0.00, 0.00%) , a leading software and technology provider of advanced digital television solutions, today announced financial results for its fourth quarter and full year ended December 31, 2009.
Key Operating Measures
USD Millions Three Three Change Twelve months Twelve months Change
months months ended ended
ended ended December 31, December 31,
December December 2009 2008
31, 31,
2009 2008
Revenues $31.2m $28.9m 8.0% $120m $116.5m 3.0%
Net Income $0.7m $2.3m $(1.6)m $6.2m $9.6m $(3.4)m
Adjusted EBITDA, before unusual items $4.4m $3.9m $0.5m $16.9m $17.6m $(0.7)m
Cash, Cash Equivalents and Marketable Debt Securities $118.5m $102.8m 15.3% $118.5m $102.8m 15.3%
Full-Year 2009 Results
For the year ended December 31, 2009, revenues were $120.0 million, an increase of 3.0% compared to $116.5 million in 2008. Royalties and licenses revenues increased 8.9% to $84.0 million. Services and other revenues decreased 8.6% to $36.0 million. Adjusted EBITDA, before unusual items, decreased to $16.9 million in 2009, compared to $17.6 million in 2008.
Net income for the year ended December 31, 2009 was $6.2 million, or $0.05 per share, compared to $9.6 million, or $0.07 per share, in 2008.
Cash flows from operations were $20.3 million in 2009, compared to $14.2 million in 2008.
As of December 31, 2009, the company recorded a balance of $39.8 million in deferred revenue, compared to $33.2 million as of December 31, 2008.
As of December 31, 2009, the company had cash, cash equivalents and short and long-term marketable debt securities totaling $118.5 million, compared to $102.8 million as of December 31, 2008.
Fourth Quarter 2009 Results
For the quarter ended December 31, 2009, revenues were $31.2 million, compared to revenues of $28.9 million in the fourth quarter of 2008. Royalties and licenses revenues were $22.2 million, compared to $20.2 million in the fourth quarter of 2008. Services and other revenues were $9.0 million in the fourth quarter of 2009, compared to $8.7 million in the prior year period. Adjusted EBITDA, before unusual items, was $4.4 million, compared to $3.9 million in fourth quarter of 2008.
Net income in the fourth quarter of 2009 was $0.7 million, or $0.01 per diluted share, compared to net income of $2.3 million, or $0.02 per diluted share, in the fourth quarter of 2008.
Segment Information
Revenues
-- For the full year 2009, revenues from the Middleware Solutions segment increased by 5.7% to $109.1 million from $103.2 million in 2008. In the fourth quarter of 2009, revenues from the Middleware Solutions segment were $28.5 million, compared to $25.7 million for the same period in the prior year.
-- For the full year 2009, revenues from the Advertising Solutions segment decreased 18.0% to $10.9 million from $13.3 million in 2008. In the fourth quarter of 2009, revenues from the Advertising Solutions segment were $2.7 million, compared to $3.3 million for the same period in the prior year.
Contribution Margin
-- For the full year 2009, Middleware Solutions contribution margin was $41.8 million, compared to $40.8 million for 2008. In the fourth quarter of 2009, Middleware Solutions contribution margin was $10.8 million, compared to $9.8 million for the same period in the prior year.
-- For the full year 2009, Advertising Solutions contribution margin was breakeven, compared to $1.0 million for 2008. In the fourth quarter of 2009, Advertising Solutions contribution margin was $(0.1) million, compared to $0.2 million for the same period in the prior year.
For 2009, total contribution margin from our operating segments was $41.8 million, which is consistent with the total contribution margin for 2008. Unallocated corporate overhead in 2009 was $25.0 million, compared to $24.1 million in 2008. For the fourth quarter of 2009, total contribution margin from the company's operating segments was $10.7 million, compared to $10.0 million for the same period in the prior year. Unallocated corporate overhead was $6.3 million in the fourth quarter of 2009, compared to $6.1 million for the same period in the prior year.
Adjusted EBITDA before unusual items and contribution margin are non-GAAP financial measures. Reconciliations of the differences between these non-GAAP financial measures and net income, which is the most directly comparable GAAP financial measure, are included at the end of this press release. Additional information regarding the derivation of Adjusted EBITDA and contribution margin and a statement of the relevance to management of this information and its possible usefulness to investors is also included at the end of this release and on the investor relations page of our Web site.
Update on Redemption
On February 24, 2010, OpenTV announced that it is redeeming all of its outstanding Class A ordinary shares, other than any such shares held by its controlling shareholder, Kudelski SA, and two of its subsidiaries, for $1.55 per share, without interest and less applicable withholding taxes. OpenTV intends to complete the redemption at 5:00 p.m., New York City time, on March 26, 2010. The company also announced that it intends to effect a voluntary delisting of its Class A ordinary shares from The NASDAQ Global Market effective upon completion of the redemption.
OpenTV does not intend to conduct a conference call to discuss the company's financial results for the quarter and year ended December 31, 2009.
Summary of Recent Announcements
The following is a summary of key press releases since the company's last earnings release:
-- OpenTV announced the launch of a unique, multi-platform interactive application for the FOXTEL and AUSTAR networks, two of the company's longstanding customers in Australia, that enables enhanced coverage of the Vancouver Olympic Winter Games. The interactive application allowed the network to offer their customers a rich and wide array of interactive data and information to enhance and complement the most extensive coverage of an Olympic Winter Games ever offered in Australia.
-- OpenTV announced its collaboration with Coverity, a leader in software integrity solutions, to further complement OpenTV's middleware testing environment by offering Coverity Static Analysis software models to its integration and development customers and partners. These models will help OpenTV customers and partners enhance the quality and performance of the integration work they are able to perform with OpenTV's middleware in their own development labs, thereby saving a significant amount of time in the integration phase of an OpenTV customer launch.
-- OpenTV announced that longstanding customer FOXTEL in Australia launched its next gene