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Digimarc Corporation Reports First Quarter Results, Record Revenue

Press release from the issuing company

PORTLAND, OR - April 18, 2001 - Digimarc Corporation (NASDAQ: DMRC), the world leader in digital watermark technology and applications, today announced its third consecutive quarter of record revenues of $3.7 million for the quarter ended March 31, 2001. The record revenues for the first quarter of 2001 represent a 45 percent increase over the $2.6 million of revenues in the comparable period of 2000. Net loss per share for the first quarter of 2001 was better than the First Call consensus estimate, coming in at $(0.24), based on 16.41 million weighted average basic and diluted shares outstanding for the quarter. This loss compares with a net loss per share of $(0.19) based on 12.73 million weighted average basic and diluted shares outstanding for the comparable period of 2000. "Q1 was a very productive quarter for Digimarc. I am especially pleased with the company's performance in light of the challenging state of our general economy. As promised, we have been focusing on the bottom line. Through a combination of continuing revenue growth and effective management of expenses, our earnings per share performance exceeded analysts' expectations," said Bruce Davis, Digimarc's president and CEO. "Revenues grew significantly, even with the conservative investment posture we are employing due to the state of the economy. We continue to make excellent progress in creating and fostering the deployment of valuable applications with powerful customers and other business partners that will drive the adoption of digital watermarking." Davis continued, "All areas of the business showed significant progress. However, we are especially pleased that Digimarc MediaBridge revenues again demonstrated substantial sequential quarterly growth, increasing by 135 percent over Q4 2000. Applications are proliferating. In late 2000, we entered the commercial printing market through partnerships with Intelligencer and Printer, Buyers and Brokerage Association International, the largest printing industry association. In the first quarter of 2001, we expanded our partnerships to the Printing Industries of America (the world's largest graphic arts association) making Digimarc MediaBridge benefits available to 10,000 affiliated commercial printers; and to other national printing companies such as Royal Impressions and Viking Lithograph, who are providing their customers with Digimarc MediaBridge as a new tool for targeted promotions and other direct marketing opportunities. During the quarter, we also announced our first international contract with John Dickinson Stationery (JDS), the U.K.'s leading producer of quality envelopes and stationery. JDS's product, Hypermail, powered by Digimarc MediaBridge technology, won the International Direct Marketing Fair's dmBusiness Best New Product for 2001."