Click here to close now.



Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

Monotype Announces First Quarter 2014 Results

Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading provider of typefaces, technology and expertise for creative applications and consumer devices, today announced financial results for the first quarter ended March 31, 2014.

First quarter 2014 highlights

  • Revenue for the quarter was a record $46.1 million, a 10 percent increase year-over-year.
  • Operating income was $13.9 million, or 30 percent of revenue.
  • Non-GAAP net adjusted EBITDA was a record $19.2 million, or 42 percent of revenue.
  • Cash flow from operations was $16.8 million.

“Monotype had a strong first quarter, driven by continued momentum in Creative Professional, as we helped more brands take advantage of expanding opportunities in today’s multi-screen world,” said Doug Shaw, president and chief executive officer. “In addition, we’re very pleased with our recent acquisition of Mark Boulton Design. With the new team on board adding to our deep bench of talent, we’re well positioned to drive home the importance of Web fonts, responsive design and HTML5 to help brands to deliver exceptional experiences across multiple devices.”

“We’re executing well in each of the markets we serve, while driving our model of growth, profitability and cash flow. We are continuing to invest in the business long term, while providing additional return to shareholders,” said Scott Landers, senior vice president and chief financial officer. “During the quarter, we returned more than $9.0 million to shareholders through our dividend and share repurchase programs, while increasing our cash balance nearly $10.0 million.”

First quarter 2014 operating results

Revenue for the quarter was $46.1 million, up 10 percent compared to $42.0 million for the first quarter of 2013. Creative Professional revenue was $17.7 million, increasing 16 percent from the same period in 2013. OEM revenue was $28.4 million, increasing six percent from the first quarter of 2013.

Net income was $8.4 million, compared to $8.6 million in the first quarter of 2013. Earnings per diluted share were $0.21, compared to $0.22 in the same period in 2013.

Non-GAAP net income, which excludes the amortization of intangible assets and share based compensation expense, net of taxes, was $11.5 million, compared to $11.6 million in the first quarter of 2013. Non-GAAP earnings per diluted share were $0.29 compared to $0.30 in the same period in 2013.

Non-GAAP net adjusted EBITDA was $19.2 million, or 42 percent of revenue, compared to $18.6 million in the first quarter of 2013.

In the first quarter, Monotype incurred approximately $900,000 of expenses related to acquisition and other non-recurring legal and administrative expenses.

A reconciliation of GAAP measures to non-GAAP measures for the three months ended March 31, 2014 and 2013 is provided in the financial tables that accompany this release.

Cash and cash flow

Monotype had cash and cash equivalents of $88.2 million as of March 31, 2014, compared to $78.4 million as of Dec. 31, 2013, and $43.0 million as of March 31, 2013. The company generated $16.8 million of cash from operations in the first quarter of 2014.

Quarterly dividend and share repurchase program

Monotype’s most recent dividend payment of $0.08 per share was paid on April 21, 2014, to shareholders of record on April 1, 2014, and represented a 33 percent increase per share from the previous payment. The next dividend payment of $0.08 per share will be paid on July 21, 2014, to shareholders of record as of July 1, 2014.

During the first quarter of 2014, Monotype repurchased approximately 227,000 shares of common stock under the company’s existing repurchase program for an aggregate amount of approximately $6.8 million. Monotype purchased the shares on the open market at prevailing market prices.

Financial outlook

For the second quarter of 2014, Monotype expects revenue in the range of $44.0 million to $45.5 million. The company anticipates second quarter 2014 non-GAAP net adjusted EBITDA in the range of $17.5 million to $19.0 million, GAAP earnings per diluted share in the range of $0.16 to $0.19 and non-GAAP earnings per diluted share in the range of $0.25 to $0.28.

Monotype is today reiterating its previously issued, full year 2014 guidance. The company expects revenue in the range of $180.0 million to $185.0 million. The company anticipates full year 2014 non-GAAP net adjusted EBITDA in the range of $74.5 million to $78.5 million, GAAP earnings per diluted share in the range of $0.77 to $0.83 and non-GAAP earnings per diluted share in the range of $1.12 to $1.18.

Conference call details

Monotype will host a conference call on Thursday, May 1, 2014, at 8:30 a.m. EDT to discuss the company’s first quarter 2014 results and business outlook for 2014. Individuals who are interested in listening to the audio webcast should log on to the Investors portion of the About Us section of Monotype’s website at www.monotype.com. The live call can also be accessed by dialing 877-941-6009 (domestic) or 480-629-9866 (international) using passcode 4678685. If individuals are unable to listen to the live call, the audio webcast will be archived in the Investors portion of the company’s website for one year.

Non-GAAP financial measures

This press release contains non-GAAP financial measures under the rules of the U.S. Securities and Exchange Commission. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget and in reporting to lenders. Non-GAAP financial measures are used by Monotype management in its operating and financial decision-making because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, Monotype believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the company’s current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. Monotype management compensates for these limitations by considering the company’s financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release.

Forward-looking statements

This press release may contain forward-looking statements including those related to future revenues and operating results, the growth of the company’s Creative Professional business and OEM business, the execution of the company’s growth strategy and anticipated business momentum that involve risks and uncertainties that could cause the company’s actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: risks associated with changes in the economic climate, including decreased demand for fonts, Web design tools or products that incorporate the company’s text imaging solutions; risks associated with the interruption of certain manufacturing chains as a result of natural disasters or political tensions; risks associated with changes in the financial markets, including the availability of credit; risks associated with increased competition, which may result in the company losing customers or force it to reduce prices; risks associated with the development and market acceptance of new products or product features; risks associated with the company’s ability to integrate products and employees from acquired companies in a timely manner or at all; risks associated with the company’s ability to adapt its products to new markets and to anticipate and quickly respond to evolving technologies and customer requirements; and risks associated with the ownership and enforcement of the company’s intellectual property. Additional disclosure regarding these and other risks faced by the company is available in the company’s public filings with the Securities and Exchange Commission, including the risk factors included in the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 and subsequent filings. The forward-looking financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in the company’s Annual Report on Form 10-K for the year ended December 31, 2013. While Monotype may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so, even if an estimate changes.

About Monotype

Monotype is a leading global provider of typefaces, technology and expertise that enable the best user experience and ensure brand integrity. Based in Woburn, Mass., Monotype provides customers worldwide with typeface solutions for a broad range of creative applications and consumer devices. The company’s libraries and e-commerce sites are home to many of the most widely used typefaces – including the Helvetica®, Frutiger® and Univers® families – as well as the next generation of type designs. Further information is available at www.monotype.com.

Monotype, Helvetica and Frutiger are trademarks of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. Univers is a trademark of Monotype GmbH registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. All other trademarks are the property of their respective owners. ©2014 Monotype Imaging Holdings Inc. All rights reserved.

       

MONOTYPE IMAGING HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands)

 
March 31,
2014
December 31,
2013
Assets
Current assets:
Cash and cash equivalents $ 88,154 $ 78,411
Accounts receivable, net of allowance for doubtful accounts 8,027 8,317
Income tax refunds receivable 1,792 3,334
Deferred income taxes 3,557 3,557
Prepaid expenses and other current assets   3,231     3,394  
Total current assets 104,761 97,013
Property and equipment, net 4,563 3,568
Goodwill 176,375 176,350
Intangible assets, net 74,122 76,684
Other assets   2,911     2,744  
Total assets $ 362,732   $ 356,359  
 
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 1,082 $ 1,112
Accrued expenses and other current liabilities 17,737 20,439
Deferred revenue   10,225     6,767  
 
Total current liabilities 29,044 28,318
Other long-term liabilities 906 972
Deferred income taxes 33,745 32,600
Reserve for income taxes, net of current portion 2,569 2,496
Accrued pension benefits 5,172 5,098
Stockholders’ equity:
Common stock. 39 39
Additional paid-in capital 215,279 209,376
Treasury stock, at cost (9,049 ) (2,279 )
Retained earnings 84,024 78,741
Accumulated other comprehensive income   1,003     998  
Total stockholders’ equity   291,296     286,875  
Total liabilities and stockholders’ equity $ 362,732   $ 356,359  
 

MONOTYPE IMAGING HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited and in thousands, except share and per share data)

 
    Three Months Ended
March 31,
2014     2013
Revenue $ 46,072 $ 42,039
Cost of revenue 6,508 6,009
Cost of revenue—amortization of acquired technology   1,145   1,138
 
Total cost of revenue   7,653   7,147
 
Gross profit 38,419 34,892
Operating expenses:
Marketing and selling 11,118 9,919
Research and development 5,753 4,972
General and administrative 6,198 4,705
Amortization of other intangible assets   1,432   1,490
 
Total operating expenses   24,501   21,086
 
Income from operations 13,918 13,806
Other (income) expense:
Interest expense, net 276 418
Other expense, net   89   541
 
Total other expense   365   959
 
Income before provision for income taxes 13,553 12,847
Provision for income taxes   5,108   4,231
 
Net income $ 8,445 $ 8,616
 
Net income available to common stockholders—basic $ 8,317 $ 8,478
 
Net income available to common stockholders—diluted $ 8,319 $ 8,481
 
Net income per common share:
Basic $ 0.21 $ 0.23
 
Diluted $ 0.21 $ 0.22
 
Weighted average number of shares:
Basic 38,712,679 37,102,507
Diluted 39,750,280 38,484,522
Dividends declared per common share $ 0.08 $ 0.06
 

MONOTYPE IMAGING HOLDINGS INC.

OTHER INFORMATION

(Unaudited and in thousands)

       

RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP NET ADJUSTED EBITDA

 
Three Months Ending
March 31,
2014 2013
Income from operations $ 13,918 $ 13,806
Depreciation and amortization 2,982 2,997
Share based compensation   2,260   1,749
 
Net adjusted EBITDA $ 19,160 $ 18,552
 

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

       
Three Months Ended
March 31,
2014 2013
GAAP net income $ 8,445 $ 8,616
Amortization, net of tax 1,605 1,763
Share based compensation, net of tax   1,408   1,174
 
Non-GAAP net income $ 11,458 $ 11,553
 

RECONCILIATION OF GAAP EARNINGS PER DILUTED SHARE TO NON-GAAP EARNINGS PER DILUTED SHARE

       
Three Months Ended
March 31,
2014 2013
GAAP earnings per diluted share $ 0.21 $ 0.22
Amortization, net of tax 0.04 0.05
Share based compensation, net of tax   0.04   0.03
 
Non-GAAP earnings per diluted share $ 0.29 $ 0.30
 

MONOTYPE IMAGING HOLDINGS INC.

OTHER INFORMATION

(Unaudited and in thousands)

       

OTHER INFORMATION

 

Share based compensation is comprised of the following:

 
Three Months Ended
March 31,
2014 2013
Marketing and selling

$

1,046

$

777

Research and development 514 416
General and administrative   700   556
 
Total expensed 2,260 1,749
Property and equipment   23  

 
Total share based compensation

$

2,283

$

1,749

 

MARKET INFORMATION

       

The following table presents revenue for our two major markets:

 
Three Months Ended
March 31,
2014 2013
Creative Professional $ 17,719 $ 15,332
OEM   28,353   26,707
 
Total $ 46,072 $ 42,039
 

MONOTYPE IMAGING HOLDINGS INC.

OTHER INFORMATION

(Unaudited and in thousands, except share and per share data)

       

RECONCILIATION OF FORECAST GAAP EARNINGS PER DILUTED SHARE TO FORECAST NON-GAAP EARNINGS PER DILUTED SHARE

 

Low End of
Guidance

High End of
Guidance

Q2 2014 Q2 2014
GAAP net income $ 6,400 $ 7,600
Amortization, net of tax 1,700 1,700
Share-based compensation, net of tax   2,100   2,100
 
Non-GAAP net income $ 10,200 $ 11,400
 
 
GAAP earnings per diluted share $ 0.16 $ 0.19
Amortization, net of tax, per diluted share 0.04 0.04
Share-based compensation, net of tax, per diluted share   0.05   0.05
 
Non-GAAP earnings per diluted share $ 0.25 $ 0.28
 
 
Weighted average diluted shares used to compute earnings per share

40,200,000

40,200,000

 

Assumes 37% effective tax rate.

 
       

Low End of
Guidance

High End of

Guidance

2014 2014
GAAP net income $ 30,750 $ 33,100
Amortization, net of tax 6,200 6,200
Share-based compensation, net of tax   7,600   7,600
 
Non-GAAP net income   44,550   46,900
 
 
GAAP earnings per diluted share $ 0.77 $ 0.83
Amortization, net of tax, per diluted share 0.16 0.16
Share-based compensation, net of tax, per diluted share   0.19   0.19
 
Non-GAAP earnings per diluted share $ 1.12 $ 1.18
 
Weighted average diluted shares used to earnings per share

39,700,000

39,700,000

 

Assumes 37% effective tax rate.

 

MONOTYPE IMAGING HOLDINGS INC.

RECONCILIATION OF FORECAST GAAP OPERATING INCOME

TO FORECAST NON-GAAP NET ADJUSTED EBITDA

(Unaudited and in thousands)

       
Low End of

Guidance

High End of
Guidance

Q2 2014 Q2 2014
GAAP operating income $ 11,100 $ 12,600
Depreciation and amortization 3,100 3,100
Share-based compensation   3,300   3,300
 
Non-GAAP net adjusted EBITDA $ 17,500 $ 19,000
 
       

Low End of

Guidance

High End of
Guidance

2014 2014
GAAP operating income $ 51,000 $ 55,000
Depreciation and amortization 11,400 11,400
Share-based compensation   12,100   12,100
 
Non-GAAP net adjusted EBITDA $ 74 ,500 $ 78,500
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.