Digimarc shows growth, but losses deepen

Digimarc Corporation has reported higher revenues, but deepening losses for both its fourth quarter and full year ended 31 December 2005.

Digimarc’s total revenue for 2005 was US$101.1 million, 9% higher compared with the US$92.9 million it posted in 2004. Net losses, however, came in at US$23.1 million compared with a net loss of US$9.0 million in 2004.

On a quarterly basis, fourth quarter revenue totalled US$25.1 million, up 13% on the US$22.3 million made in the same period of 2004. Fourth quarter net loss, meanwhile, was US$7.5 million, compared with a net loss of US$4.5 million in Q4, 2004.

Despite the worsening income figures, Digimarc Chairman and CEO Bruce Davis remained upbeat: “2005 ended on an encouraging note with a number of positive financial and market developments that position us well for improved financial performance in 2006. Digimarc’s quarterly financial trends were generally positive, as revenues grew at a higher rate in the second half of the year, operating expenses moderated, and cash flow improved."

Highlights in the fourth quarter included a new five-year agreement with the Texas Department of Public Safety valued at nearly US$30 million to provide a centrally issued driver license that included fingerprint matching and facial recognition to screen for attempted driver license fraud.

Among others, another highlight was a two-year contract extension with the California Department of Motor Vehicles to continue to operate its central-issue driver license system.

Early first quarter 2006 highlights included a new six-year contract with Indiana Bureau of Motor Vehicles to supply a new driver license issuance system.