Rentrak Corp. (RENT) reports fifth consecutive quarter of revenue and earnings growth

Feb.21.05 | About: Rentrak Corporation (RENT)

Rentrak Corp. (NASDAQ:RENT) reported results  on February 14, 2005 for
the fiscal third quarter 2005.  Below are some highlights.

Results F3Q05 vs. F3Q04:

  • Adjusted EPS: $0.12 vs. $0.07 (+71%)
  • Revenue: $22.8M vs. $20.4M (+12%)
  • Operating income: $2.2M vs. $0.9M (+144%)
  • Operating margin: 9.6% vs. 4.4% (+520 bps)
  • Net Income: $1.3M vs. $0.6M (216%)
  • Free cash flow: $5.8M vs. $2.7M (114%)
  • Cash: $18.2M vs. $8.7M (+109%)
  • Debt: none

Revenue breakdown F3Q05 vs. F3Q04:

  • Order processing fees:

    $1.4M

    vs. $1.6M (-13%)

  • Transaction fees

    :
    $12.9M  $13.4 (-5%)

  • Sell-through fees

    : $5.1 vs. $2.8 (+82%)

  • Communication fees: $0.2 vs. $0.3 (-9%)
  • Other: $3.1 vs. $2.1 (+47%)

Mark Cuban's investment:

  • On December 21, 2004, Mark Cuban (founder of Broadcast.com; owner of the NBA's Dallas Mavericks; star of The Benefactor) purchased 500,000 shares at $9/per share.
  • $2.8M went to the company; $1.7M went to selling shareholders.

Significant customers:

  • Largest PPT customer accounted for 17% of revenues in F3Q; revenue from this customer is expected to decline from $1.9M in F3Q to $0.5M in F4Q.
  • Largest Program Supplier customers accounted for 28% and 20% of revenues during F3Q

Ongoing VOD pilot programs:

  • Comcast Cable: signed 12-month pilot to test OnDemand Essentials; began in March 2004
  • Insight Communications: signed 12-month pilot to test OnDemand Essentials; began in September 2004
  • Music Choice: In July 2004, signed contract to begin testing My Music Choice

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