--Annual Net Income Up 100%
News Corp.-owned interactive TV middleware, applications and content-security technology provider, NDS, has released financial results for its fiscal 4th quarter and year, ended June 30th:
- Q4 revenues totaled $146.8 million, compared to $101.3 million for the year-ago quarter, while annual revenues totaled $556.3 million, compared to $356.7 million for the previous year.
- Conditional access revenues increased 73% for the quarter and 90% for the year: the company ascribed the increase to "a combination of an increase in the number of smart cards supplied and growth in the number of authorized smart cards in use."
- Revenues from integration, development and support declined by 20% for the quarter and by 5% for the year. The company said that the "full-year impact of [its acquisition of the MediaHighway ITV middleware business] and revenue from work related to Sky Italia's migration were offset by revenues in fiscal 2004 from Foxtel and from our previous contract with DirecTV."
- Revenues from license fees and royalties increased 45% for the quarter and 38% for the year. The company said that the results reflected increased conditional access royalties from Sky Italia and other customers, increased usage of its middleware as Sky Italia migrated its platform to NDS's technology, and the contribution of customers acquired with the MediaHighway middleware business.
- Revenues from new technologies (including PVR technology, interactive infrastructure, gaming applications and IPTV solutions) increased 11% for the quarter and 32% for the year. The company ascribed the increase to "the higher number of subscribers using our technology, the deployment of our technology on new platforms and initial revenues from" new contracts for its Synamedia IPTV solution. It said that it had "recognized initial revenue from the supply of various interactive infrastructure components to DirecTV, but not, as yet, any revenue from PVR projects for DirecTV."
- Q4 operating income was $20.1 million, compared to an operating loss of $1 million for the year-ago quarter; annual operating income was $92.2 million, representing a 90% increase from the previous year.
- Q4 net income was $21.9 million, or $0.40 per share ($0.38 per share on a diluted basis), compared to $51,000, or breakeven per share, for the year-ago quarter; annual net income was $74 million, or $1.35 per share ($1.29 on a diluted basis), compared to $37 million, or $0.69 per share ($0.67 on a diluted basis) for the previous year.
- NDS estimates that, as of June, 2005 a cumulative total of 20.4 million set-top boxes containing its middleware had been shipped, representing an increase of 2 million from June, 2004; it estimates that 56.7 million of its smart cards were in the field, as of the end of June, compared to 44 million at the same point last year. The company also said that, while downloads of its middleware to DirecTV set-tops began in the fiscal 4th quarter, "our revenue recognition criteria were not met as of June 30, 2005." However, it says that it expects to start recognizing revenue from this in fiscal 2006.
- At the end of its fiscal fourth quarter, the company's cash reserves totaled $339.8 million. Cash of $117.7 million was generated from operating activities in fiscal 2005, compared to $91.7 million in fiscal 2004. The company said that the increase in net cash provided by operating activities "reflects higher receipts from customers, particularly in respect of conditional access income from DirecTV and income from the MediaHighway business."
The company also provided some guidance for fiscal 2006:
- It expects revenues to range between $600 million and $625 million (note: it cautions that fluctuations in the exchange rate between the British pound and the US dollar could impact these figures substantially).
- It expects operating profit to range between $102 million and $110 million.
Click http://www.itvt.com to subscribe to our free email newsletter, which contains all the news stories you see on this Web site, as well as breaking news and scoops, in-depth features, interviews, and other exclusive content.
-
|
|
|
|
