Acquisition expected to help company access new technologies
Macrovision Corp. on Monday said its second quarter profits rose 65% to $2.2 million, over $1.3 million a year ago, while revenues were up to $8 million, a gain of 42% for the period. The results were driven by its acquisition of C-Dilla Ltd. and the signing of Microsoft and gamemaker Electronic Arts as clients of its copyright protection software.
During the period, ended June 30, the Sunnyvale, Calif.-based company acquired the remaining outstanding shares in C-Dilla for $12.3 million in cash and 109,200 shares of Macrovision stock. Including the $3.6 million Macrovision paid for its initial stake in C-Dilla in 1998, total acquisition is valued at $21.5 million.
The acquisition is expected to give the company access to new technologies to help protect audio, software and data distributed via the Internet.
“We’re very pleased with our second quarter results,” said Bill Krepick, Macrovision’s prexy and chief operating officer. “The homevideo industry continued on a high note for the company with increased levels of revenue from all three product groups, videocassette, DVD and digital PPV.”
Separately, Vic Viegas, the company’s chief financial officer, said he will resign Aug. 1 to join an Internet start-up company.
Macrovision was up $1.44 to close at $76.06, a gain of 2%.