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

Rentrak Corp. (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