UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
July 25,
2012
Date
of Report (Date of earliest event reported)
MONOTYPE IMAGING HOLDINGS INC.
(Exact
name of registrant as specified in its charter)
Delaware |
001-33612 |
20-3289482 |
(State or Other Jurisdiction of Incorporation) |
(Commission File No.) |
(IRS Employer Identification No.) |
500 Unicorn Park Drive |
(Address of Principal Executive Offices, including Zip Code) |
Registrant’s
telephone number, including area code: (781) 970-6000
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On July 27, 2012, Monotype Imaging Holdings Inc. (the “Company”) announced its financial results for the quarter and six months ended June 30, 2012. A copy of the press release issued in connection with the announcement is attached as Exhibit 99.2 to this Current Report on Form 8-K.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On July 25, 2012, the Company’s Board of Directors (the “Board”) announced that Mr. Timothy B. Yeaton was appointed to serve on the Board, effective immediately, as an independent director until his successor is duly elected and qualified, or until his earlier death, resignation or removal.
Mr. Yeaton will be compensated for his service as a director in accordance with the Company’s director compensation policy which is described in the Company’s Proxy Statement filed with the Securities and Exchange Commission on April 9, 2012.
There are no arrangements or understandings between Mr. Yeaton and any other persons pursuant to which he was appointed as a member of the Board. There are no family relationships between Mr. Yeaton and any director, executive officer or any other person nominated or chosen by the Company to become a director or executive officer. There are no related person transactions (within the meaning of Item 404(a) of Regulation S-K promulgated by the Securities and Exchange Commission) between Mr. Yeaton and the Company.
A copy of the press release issued in connection with the announcement of the appointment of Mr. Yeaton as a member of the Board is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 8.01 Other Events
On July 27, 2012, the Company announced that the Board has approved the initiation of a regular quarterly cash dividend in the amount of $0.04 per share of common stock of the Company (the “Dividend”), which will be first paid on October 19, 2012 to shareholders of record on October 1, 2012, with future payments and record dates subject to Board approval. A copy of the press release issued in connection with the announcement of the Dividend is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Except for information set forth in Item 5.02, the information on this Form 8-K (including Exhibit 99.1 and Exhibit 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits relating to Items 2.02, 5.02 and 8.01 shall be deemed to be furnished, and not filed:
99.1 Press Release issued by Monotype Imaging Holdings Inc. on July 25, 2012.
99.2 Press Release issued by Monotype Imaging Holdings Inc. on July 27, 2012.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.
MONOTYPE IMAGING HOLDINGS INC. |
||
|
||
July 27, 2012 |
By: |
/s/ Scott E. Landers |
Scott E. Landers |
||
Senior Vice President, Chief Financial Officer, |
||
Treasurer and Assistant Secretary |
EXHIBIT INDEX
Exhibit Number |
Description | |
99.1 |
Press Release issued by Monotype Imaging Holdings Inc. on July 25, 2012. |
|
99.2 |
Press Release issued by Monotype Imaging Holdings Inc. on July 27, 2012. |
Exhibit 99.1
Monotype Imaging Appoints Timothy B. Yeaton to its Board of Directors
President and CEO of Black Duck Software Joins Board as Independent Director
WOBURN, Mass.--(BUSINESS WIRE)--July 25, 2012--Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading provider of typefaces, technology and expertise for creative applications and consumer devices, has announced that Timothy B. Yeaton, president and chief executive officer of Black Duck Software, has joined Monotype’s board of directors as an independent director. Yeaton, a technology veteran with more than 30 years of software and technology management experience, has also been appointed to the company’s nominating and corporate governance committee.
“Tim brings a tremendous background in understanding software development and middleware requirements, in addition to deep knowledge of the open source industry,” said Robert M. Givens, chairman of Monotype’s board of directors. “Tim’s experience in running a successful software company and navigating today’s rapidly evolving business landscape will be of great value as Monotype continues to diversify and expand further into global markets.”
“Monotype is clearly focused on diversification and serving an expanding base of customers who can benefit from the company’s typefaces, technologies and expertise,” said Yeaton. “I look forward to working closely with the board and management to help maximize Monotype’s impressive potential.”
In 2009, Yeaton joined Black Duck Software, a leading global provider of strategy, products and services for enabling enterprise scale adoption of open source software. During his tenure, the company has experienced almost 40 percent annualized year-over-year growth, completed three major acquisitions and created a joint venture in greater China. Prior to Black Duck, Yeaton served as chief marketing officer at EqualLogic until its acquisition by Dell (Nasdaq: DELL) in 2008. As Dell’s vice president of the Nashua (N.H.) Design Center, Yeaton led the integration of the two companies and managed Dell’s operations in the region. Yeaton also spent several years at Red Hat (NYSE: RHT), a leading provider of open source software solutions, as senior vice president of worldwide marketing and general manager of Enterprise Solutions. At Red Hat, Yeaton was instrumental in expanding its business into the developer and middleware markets with acquisitions of JBoss and MetaMatrix, and he built go-to-market partnerships with companies such as IBM, HP, Dell and Sun Microsystems.
Yeaton was also chief executive officer of Avaki, a venture-backed data management software company acquired by Sybase (NYSE: SAP), and he was senior vice president and general manager of the Server Products Division at Macromedia (Nasdaq: ADBE), via its acquisition of Allaire where he was senior vice president of Products. Yeaton spent the early part of his career at Compaq and Digital Equipment Corp. (NYSE: HPQ), where he was also vice president and general manager of Compaq’s UNIX/Linux Software Division.
In addition to Monotype and Black Duck, Yeaton sits on the board of directors of Actuate Corp. (Nasdaq: BIRT) and serves on the Roger Williams University board of trustees.
About Monotype Imaging
Monotype Imaging is a leading provider of typefaces, technology and expertise that enable the best user experience and ensure brand integrity. Based in Woburn, Mass., Monotype Imaging provides customers worldwide with typeface solutions for a broad range of creative applications and consumer devices. The company’s library 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.monotypeimaging.com.
Monotype is a trademark of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. Helvetica and Frutiger are trademarks of Linotype Corp. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions in the name of Linotype Corp. or its licensee Linotype GmbH. Univers is a trademark of Linotype GmbH registered in the U.S. Patent and Trademark Office and may be registered in certain other jurisdictions. All other trademarks are the property of their respective owners. ©2012 Monotype Imaging Holdings Inc. All rights reserved.
CONTACT:
ICR
Staci Mortenson, 781-970-6120
ir@monotypeimaging.com
Exhibit 99.2
Monotype Imaging Announces Second Quarter 2012 Results
Company Reports Record Results and Announces Quarterly Cash Dividend Program
WOBURN, Mass.--(BUSINESS WIRE)--July 27, 2012--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 second quarter ended June 30, 2012.
Second quarter 2012 and recent highlights
“In the second quarter, we delivered record profitability, driven by record results in both our OEM and Creative Professional businesses. We also capitalized on revenue opportunities and realized initial expense synergies from our Bitstream acquisition, helping the company attain 43 percent net adjusted EBITDA margins,” said Doug Shaw, president and chief executive officer. “Our second quarter results reflect our continued efforts to enhance our product portfolio, improve diversification and increase momentum in our growth businesses.”
“We’re excited to announce our new cash dividend program,” said Scott Landers, senior vice president and chief financial officer. “Monotype is a unique company with a business model reinforced by recurring revenue, strong cash generation and high profit margins. We are confident that our business model can support long-term growth while providing an additional source of return for our shareholders through quarterly dividends.”
Second quarter 2012 operating results
Revenue for the quarter was $38.5 million, up 24 percent compared to $31.1 million for the second quarter of 2011. OEM revenue was $24.9 million, increasing nine percent from the second quarter of 2011. Creative Professional revenue was $13.5 million, increasing 66 percent from the same period last year.
Net income was $7.4 million, compared to $5.6 million in the second quarter of last year. Earnings per diluted share were $0.19, compared to $0.15 in the same period last year.
Non-GAAP net income, which excludes the amortization of intangible assets and stock-based compensation expense, net of taxes, was $10.1 million, compared to $8.1 million in the second quarter of 2011. Non-GAAP earnings per diluted share were $0.27, compared to $0.22 in the same period last year.
Non-GAAP net adjusted EBITDA was $16.4 million, or 43 percent of revenue, compared to $13.8 million in the second quarter of last year.
A reconciliation of GAAP measures to non-GAAP measures for the three and six months ended June 30, 2012 and 2011 is provided in the financial tables that accompany this release.
Cash, cash flow and debt balances
Outstanding debt was $42.3 million as of June 30, 2012, compared to $37.3 million as of Dec. 31, 2011, and $57.3 million as of June 30, 2011. Outstanding debt as of June 30, 2012 includes the drawdown of approximately $25 million on the company’s revolving line of credit to finance the acquisition of Bitstream completed on March 19, 2012.
Monotype had cash and cash equivalents of $32.9 million as of June 30, 2012, compared to $53.9 million as of Dec. 31, 2011 and $28.1 million as of March 31, 2012. The company generated $14.9 million of cash from operations in the second quarter of 2012, an increase of 43 percent year-over-year.
Quarterly dividend
Monotype’s board of directors approved a quarterly cash dividend program. The cash dividend will be paid on Oct. 19, 2012 to shareholders of record as of the close of business on Oct. 1, 2012. The initial quarterly dividend rate will be $0.04 per share of common stock or $0.16 annually. Monotype intends to increase this payout over time. Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of the board of directors.
“During the past five years, we have generated predictable cash flows regardless of economic conditions,” said Landers. “Since the beginning of 2007, our operations have funded over $120 million in debt principal repayments, and we have invested significantly behind our growth initiatives. We’ve created a more diversified company and are well positioned to take advantage of expanded market opportunities in displays and digital publishing. As we look forward, we believe our disciplined capital allocation strategy, which now includes a cash dividend program, will support our growth strategies, manage our balance sheet and provide shareholders with an additional source of equity return.”
Financial outlook
For the third quarter of 2012, Monotype expects revenue in the range of $36.5 million to $38.0 million. The company anticipates third quarter 2012 non-GAAP net adjusted EBITDA in the range of $15.0 million to $16.0 million, GAAP earnings per diluted share in the range of $0.17 to $0.19 and non-GAAP earnings per diluted share in the range of $0.24 to $0.26.
For the full year 2012, Monotype expects revenue in the range of $146.0 million to $149.0 million. The company anticipates full year 2012 non-GAAP net adjusted EBITDA in the range of $61.0 million to $63.0 million, GAAP earnings per diluted share in the range of $0.69 to $0.73 and non-GAAP earnings per diluted share in the range of $0.97 to $1.01.
Conference call details
Monotype will host a conference call on Friday, July 27, 2012, at 8:30 a.m. EDT to discuss the company’s second quarter 2012 results and business outlook for 2012. Individuals who are interested in listening to the audio webcast should log on to the Investor Relations portion of the About Us section of Monotype’s website at www.monotypeimaging.com. The live call can also be accessed by dialing 877-941-0844 (domestic) or 480-629-9835 (international) using passcode 4552176. If individuals are unable to listen to the live call, the audio webcast will be archived in the Investor Relations 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 OEM business and Creative Professional 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 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; 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 adapt its products to new markets and to anticipate and quickly respond to evolving technologies and customer requirements; risks associated with the company’s ability to integrate the acquisition of Bitstream’s font business; risks associated with the company’s ability to pay dividends including the risk that the company’s board of directors may not approve future dividends; 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 Annual Report on Form 10-K for the year ended Dec. 31, 2011 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-Q for the quarter ended June 30, 2012. 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 Imaging
Monotype Imaging is a leading 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 library 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.monotypeimaging.com.
Monotype is a trademark of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. Helvetica and Frutiger are trademarks of Linotype Corp. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions in the name of Linotype Corp. or its licensee Linotype GmbH. Univers is a trademark of Linotype GmbH registered in the U.S. Patent and Trademark Office and may be registered in certain other jurisdictions. All other trademarks are the property of their respective owners. ©2012 Monotype Imaging Holdings Inc. All rights reserved.
MONOTYPE IMAGING HOLDINGS INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited and in thousands) | |||||||
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 32,918 | $ | 53,850 | |||
Accounts receivable, net | 6,952 | 6,588 | |||||
Income tax refunds receivable | 447 | 733 | |||||
Deferred income taxes | 2,366 | 506 | |||||
Prepaid expenses and other current assets | 3,515 | 3,228 | |||||
Total current assets | 46,198 | 64,905 | |||||
Property and equipment, net | 2,661 | 2,404 | |||||
Goodwill | 171,510 | 140,807 | |||||
Intangible assets, net | 88,814 | 71,664 | |||||
Deferred income taxes | 1,185 | 396 | |||||
Other assets | 3,461 | 3,646 | |||||
Total assets | $ | 313,829 | $ | 283,822 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 602 | $ | 1,123 | |||
Accrued expenses and other current liabilities | 11,674 | 12,235 | |||||
Accrued income taxes | 2,717 | 1,280 | |||||
Deferred revenue | 9,703 | 7,742 | |||||
Current portion of long-term debt | 10,000 | 10,000 | |||||
Total current liabilities | 34,696 | 32,380 | |||||
Long-term debt, less current portion | 32,321 | 27,321 | |||||
Other long-term liabilities | 402 | 225 | |||||
Deferred income taxes | 25,651 | 20,596 | |||||
Reserve for income taxes, net of current portion | 1,300 | 1,174 | |||||
Accrued pension benefits | 3,808 | 3,765 | |||||
Stockholders’ equity: | |||||||
Common stock | 37 | 36 | |||||
Additional paid-in capital | 172,314 | 167,448 | |||||
Treasury stock, at cost | (86 | ) | (86 | ) | |||
Retained earnings | 44,121 | 30,986 | |||||
Accumulated other comprehensive income | (735 | ) | (23 | ) | |||
Total stockholders’ equity | 215,651 | 198,361 | |||||
Total liabilities and stockholders’ equity | $ | 313,829 | $ | 283,822 |
MONOTYPE IMAGING HOLDINGS INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited and in thousands, except share and per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenue | $ | 38,496 | $ | 31,066 | $ | 72,845 | $ | 60,795 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | 6,080 | 2,961 | 9,738 | 4,987 | ||||||||||||
Cost of revenue—amortization of acquired technology | 1,085 | 798 | 1,880 | 1,575 | ||||||||||||
Total cost of revenue | 7,165 | 3,759 | 11,618 | 6,562 | ||||||||||||
Gross profit | 31,331 | 27,307 | 61,227 | 54,233 | ||||||||||||
Operating expenses: | ||||||||||||||||
Marketing and selling | 8,720 | 8,231 | 17,991 | 16,029 | ||||||||||||
Research and development | 4,588 | 3,933 | 8,932 | 8,060 | ||||||||||||
General and administrative | 4,698 | 4,144 | 9,625 | 8,337 | ||||||||||||
Amortization of other intangible assets | 1,431 | 1,304 | 2,652 | 2,595 | ||||||||||||
Total operating expenses | 19,437 | 17,612 | 39,200 | 35,021 | ||||||||||||
Income from operations | 11,894 | 9,695 | 22,027 | 19,212 | ||||||||||||
Other (income) expense: | ||||||||||||||||
Interest expense | 553 | 885 | 1,004 | 1,801 | ||||||||||||
Interest income | (9 | ) | (25 | ) | (16 | ) | (62 | ) | ||||||||
Loss (gain) on foreign exchange | 10 | (85 | ) | 277 | (481 | ) | ||||||||||
(Gain) loss on derivatives | (205 | ) | 351 | (79 | ) | 1,023 | ||||||||||
Other income, net | (3 | ) | — | (14 | ) | — | ||||||||||
Total other expense | 346 | 1,126 | 1,172 | 2,281 | ||||||||||||
Income before provision for income taxes | 11,548 | 8,569 | 20,855 | 16,931 | ||||||||||||
Provision for income taxes | 4,133 | 2,971 | 7,720 | 5,893 | ||||||||||||
Net income | $ | 7,415 | $ | 5,598 | $ | 13,135 | $ | 11,038 | ||||||||
Net income available to common stockholders – basic & diluted |
$ | 7,286 | $ | 5,502 | $ | 12,921 | $ | 10,861 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.20 | $ | 0.16 | $ | 0.36 | $ | 0.31 | ||||||||
Diluted | $ | 0.19 | $ | 0.15 | $ | 0.34 | $ | 0.30 | ||||||||
Weighted average number of shares: | ||||||||||||||||
Basic | 36,046,725 | 35,308,941 | 36,164,567 | 35,176,156 | ||||||||||||
Diluted | 37,423,532 | 36,772,515 | 37,589,957 | 36,638,697 |
MONOTYPE IMAGING HOLDINGS INC. | ||||||||||||
OTHER INFORMATION | ||||||||||||
(Unaudited and in thousands) | ||||||||||||
RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP NET ADJUSTED EBITDA | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Income from operations | $ | 11,894 | $ | 9,695 | $ | 22,027 | $ | 19,212 | ||||
Depreciation and amortization | 2,814 | 2,363 | 5,147 | 4,667 | ||||||||
Share based compensation | 1,711 | 1,753 | 3,634 | 3,322 | ||||||||
Net adjusted EBITDA | $ | 16,419 | $ | 13,811 | $ | 30,808 | $ | 27,201 |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
GAAP net income | $ | 7,415 | $ | 5,598 | $ | 13,135 | $ | 11,038 | ||||
Amortization, net of tax | 1,615 | 1,373 | 2,855 | 2,719 | ||||||||
Share based compensation, net of tax | 1,098 | 1,145 | 2,289 | 2,166 | ||||||||
Non-GAAP net income | $ | 10,128 | $ | 8,116 | $ | 18,279 | $ | 15,923 |
RECONCILIATION OF GAAP EARNINGS PER DILUTED SHARE TO NON-GAAP EARNINGS PER DILUTED SHARE |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
GAAP earnings per diluted share | $ | 0.19 | $ | 0.15 | $ | 0.34 | $ | 0.30 | ||||
Amortization, net of tax | 0.05 | 0.04 | 0.09 | 0.07 | ||||||||
Share-based compensation, net of tax | 0.03 | 0.03 | 0.06 | 0.06 | ||||||||
Non-GAAP earnings per diluted share | $ | 0.27 | $ | 0.22 | $ | 0.49 | $ | 0.43 |
MONOTYPE IMAGING HOLDINGS INC. | |||||||||||
OTHER INFORMATION | |||||||||||
(Unaudited and in thousands) | |||||||||||
OTHER INFORMATION | |||||||||||
Share based compensation is comprised of the following: | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Marketing and selling | $ | 770 | $ | 728 | $ | 1,601 | $ | 1,395 | |||
Research and development | 384 | 409 | 825 | 773 | |||||||
General and administrative | 557 | 616 | 1,208 | 1,154 | |||||||
Total share based compensation | $ | 1,711 | $ | 1,753 | $ | 3,634 | $ | 3,322 |
MARKET INFORMATION | ||||||||||||
The following table presents revenue for our two major markets: | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
OEM | $ | 24,949 | $ | 22,885 | $ | 49,593 | $ | 44,783 | ||||
Creative Professional | 13,547 | 8,181 | 23,252 | 16,012 | ||||||||
Total | $ | 38,496 | $ | 31,066 | $ | 72,845 | $ | 60,795 |
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 | ||||
Q3 2012 | Q3 2012 | ||||
GAAP net income | $ | 6,400 | $ | 7,100 | |
Amortization, net of tax | 1,600 | 1,600 | |||
Share-based compensation, net of tax | 1,100 | 1,100 | |||
Non-GAAP net income | $ | 9,100 | $ | 9,800 | |
GAAP earnings per diluted share | $ | 0.17 | $ | 0.19 | |
Amortization, net of tax, per diluted share | 0.04 | 0.04 | |||
Share-based compensation, net of tax, per diluted share | 0.03 | 0.03 | |||
Non-GAAP earnings per diluted share | $ | 0.24 | $ | 0.26 | |
Weighted average diluted shares used to compute non-GAAP earnings per share |
37,800,000 |
37,800,000 |
Assumes 36% effective tax rate.
Low End of Guidance | High End of Guidance | |||||
2012 | 2012 | |||||
GAAP net income | $ | 26,300 | $ | 27,600 | ||
Amortization, net of tax | 6,100 | 6,100 | ||||
Share-based compensation, net of tax | 4,500 | 4,500 | ||||
Non-GAAP net income | 36,900 | 38,200 | ||||
GAAP earnings per diluted share | $ | 0.69 | $ | 0.73 | ||
Amortization, net of tax, per diluted share | 0.16 | 0.16 | ||||
Share-based compensation, net of tax, per diluted share | 0.12 | 0.12 | ||||
Non-GAAP earnings per diluted share | $ | 0.97 | $ | 1.01 | ||
Weighted average diluted shares used to compute non-GAAP earnings per share |
38,000,000 |
38,000,000 |
Assumes 36% 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 | |||
Q3 2012 | Q3 2012 | |||
GAAP operating income | $ 10,500 | $ 11,500 | ||
Depreciation and amortization | 2,800 | 2,800 | ||
Share-based compensation | 1,700 | 1,700 | ||
Non-GAAP net adjusted EBITDA | $ 15,000 | $ 16,000 |
Low End of Guidance | High End of Guidance | |||||
2012 | 2012 | |||||
GAAP operating income | $ | 43,200 | $ | 45,200 | ||
Depreciation and amortization | 10,800 | 10,800 | ||||
Share-based compensation | 7,000 | 7,000 | ||||
Non-GAAP net adjusted EBITDA | $ | 61 ,000 | $ | 63,000 |
CONTACT:
ICR
Staci Mortenson, 781-970-6120
ir@monotypeimaging.com