Business News
Monotype Imaging Announces Second Quarter 2010 Results
Friday 30. July 2010 - Company Reports Year-Over-Year Growth in Revenue and Net Adjusted EBITDA
Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading global provider of text imaging solutions, today announced financial results for the second quarter ended June 30, 2010.
Second quarter 2010 highlights:
Second quarter revenue was $24.4 million, a 10 percent increase year-over-year.
Operating income for the second quarter was $6.6 million, a four percent increase over the prior year.
Non-GAAP net adjusted EBITDA for the second quarter was $10.4 million, or 43 percent of revenue.
Cash flow from operations for the first half of the year was $21.9 million, a 27 percent increase over the prior year.
“Monotype Imaging delivered a solid second quarter, as we returned to double digit year-over-year revenue growth,” said Doug Shaw, president and chief executive officer. “We expect this trend to continue into the third quarter across all areas of our business.”
Scott Landers, senior vice president and chief financial officer, said, “We continue to execute against our short and long-term strategic business plans, which are driving improved revenues, profits and cash flows. We are in a strong financial position to capture the growth opportunities we see ahead.”
Second quarter 2010 operating results
Revenue for the second quarter of 2010 was $24.4 million, up 10 percent compared to $22.3 million in the second quarter of 2009. OEM revenue for the quarter was $18.4 million, increasing nine percent year-over-year. Creative Professional revenue for the quarter was $6.0 million, increasing 13 percent from the second quarter of 2009.
Net income for the second quarter of 2010 was $3.0 million, compared to $3.1 million in the prior year period. Earnings per diluted share for the second quarter of 2010 were $0.08, compared to $0.09 for the second quarter of 2009.
In the second quarter of 2010, non-GAAP net adjusted EBITDA was $10.4 million, compared to $10.1 million in the second quarter of the prior year.
A reconciliation of GAAP operating income to non-GAAP net adjusted EBITDA for the three and six months ended June 30, 2010 and 2009 is provided in the financial tables that accompany this release.
Cash, cash flow and debt balances
Monotype Imaging had cash and cash equivalents of $44.7 million as of June 30, 2010, an increase from $38.2 million at the end of the prior quarter and an increase from $34.6 million as of Dec. 31, 2009. During the second quarter of 2010, Monotype Imaging generated $10.7 million in cash flow from operations and $21.9 million year-to-date. The companys outstanding debt was $81.2 million as of June 30, 2010, a decrease from $83.8 million at the end of the prior quarter and a decrease from $91.4 million on Dec. 31, 2009.
Financial outlook
For the third quarter of 2010, Monotype Imaging expects revenue in the range of $26.0 million to $27.5 million. The company anticipates third quarter 2010 non-GAAP net adjusted EBITDA in the range of $11.5 million to $12.5 million and earnings per share in the range of $0.10 to $0.12.
For full year 2010, Monotype Imaging expects revenue in the range of $101 million to $105 million. This revenue guidance is inclusive of approximately $1 million negative impact from foreign exchange rate fluctuations. Excluding the negative impact from foreign exchange rate fluctuations, full year revenue guidance assumptions remain unchanged. The company continues to expect full year 2010 non-GAAP net adjusted EBITDA in the range of $43 million to $46 million and earnings per share in the range of $0.38 to $0.43.