OpenTV posts first profitable year in ’08
Despite a slowdown in the fourth quarter, OpenTV posted its first profitable year in 2008.
For the year, OpenTV’s revenues were $116.5 million, which was 6 percent higher than the $110 million that was posted in 2007. OpenTV attributed the increased revenue to gains in its middleware and advanced advertising lines.
Royalties and license revenues in 2008 increased 4.6 percent to $77.1 million, while services and other revenues in 2008 increased 8.5 percent to $39.4 million. Adjusted EBITDA, before unusual items, improved to $17.6 million in 2008, compared with $8.3 million in 2007.
For the fourth quarter ended Dec. 31, revenues were $28.9 million, compared with revenues of $38.2 million in the fourth quarter of 2007.
OpenTV said revenues in the fourth quarter of 2007 were impacted by the recognition of $10.5 million of previously deferred revenue from UPC Broadband, a division of Liberty Global. Royalties and license revenues were $20.2 million in the fourth quarter of 2008, compared with $25.6 million in the prior-year period.
Services and other revenues were $8.7 million in the fourth quarter of 2008, compared with $12.6 million in the prior-year period. Adjusted EBITDA was $3.9 million in the fourth quarter of 2008, compared with $12.1 million in the prior-year period.
Net income in the fourth quarter of 2008 was $2.3 million, or 2 cents per diluted share, compared with net income of $11 million, or 8 cents per diluted share, in the same quarter in 2007.
“We remain focused on growing our core businesses and continue to solidify our market position with the deployment to date by our customers of more than 121 million OpenTV-enabled devices around the world,” said OpenTV CEO Ben Bennett. “We also continue to make significant inroads with U.S. MSOs. Our EclipsePlus product now delivers spot advertising to more than 28.5 million cable subscribers in the U.S.”