UPDATE;OpenTV’s Q3 numbers: 'challenging'

04-11-2009


One way or another middleware company OpenTV is managing to make daily headlines. Yesterday, majority shareholders Kudelski extended the time to respond to its $1.55 per share offer six days until Nov 12. Today’s main news concerns OpenTV’s third-quarter results, which we report below. However, Arcadia Capital, very much a thorn in Kudelski’s side, also had another pop at the offer price.

Indeed, one aspect that might be helping drive Kudelski’s bidding war is OpenTV’s $113.8m cash pile (up from $102.8m since Dec 31st).


“OpenTV’s third quarter results demonstrate solid operational improvements achieved in what is still a challenging global economic environment,” said Ben Bennett, OpenTV’s CEO. “The company is focused on building and delivering its suite of next generation products, which are critical for our long-term success. We remain on track to achieve our full year 2009 financial guidance.”


For the quarter ended September 30, 2009, revenues were $31.8m, an increase of 18% compared to $26.9m for the third quarter of 2008. Royalties and licenses revenues increased 25.5% to $20.7m. Services and other revenues increased 7% to $11.1m. Adjusted EBITDA, before unusual items, increased to $4.4m for the quarter ended September 30, 2009, compared to $3.7m for the third quarter of 2008.


Net income for the third quarter of 2009 was $2.6m, or $0.02 per share, compared to $1.0m, or $0.01 per share, for the third quarter of 2008.


Arcadia, in an SEC filing Nov 3, said that OpenTV’s own Special Committee, formed to make a recommendation as to the company’s valuation, said that an appropriate price/share should be “at or above $2”.