OpenTV Reports Higher Q3 Revenues and Income, Signs New Deals with Bresnan, LatAm Operator

Interactive TV and advanced advertising technology provider, OpenTV, has released its third-quarter financial results:

• Revenues totaled $31.8 million, compared to $26.9 million for the year-ago quarter (representing an increase of 18%). Royalties and licenses revenues, at $20.7 million, were up 25.5% from the year-ago quarter; and services and other revenues, at $11.1 million, were up 7%.
• Revenues from the company's Middleware Solutions segment totaled $28.9 million, compared to $23.9 million for the year-ago quarter; and revenues from its Advertising Solutions segment totaled $2.9 million, compared to $3 million for the year-ago quarter.
• Contribution margin for the Middleware Solutions segment was $11.6 million, compared to $9.3 million for the year-ago quarter; and contribution margin for the Advertising Solutions segment was $0.2 million, compared to a loss of $0.1 million for the year-ago quarter.
• Adjusted EBITDA, before unusual items, totaled $4.4 million, compared to $3.7 million for the year-ago quarter.
• Net income totaled $2.6 million, or $0.02 per share, compared to $1 million, or $0.01 per share, for the year-ago quarter.
• Cash flow from operations was $4 million, compared to $0.3 million for the year-ago quarter.
• At the end of the quarter, the company had a balance of $39.9 million in deferred revenue, compared to $33.2 million as of December 31st, 2008; and had cash, cash-equivalents and short- and long-term marketable debt securities totaling $113.8 million, compared to $102.8 million as of that date.

During a conference call with analysts following the release of the company's earnings, OpenTV CEO, Ben Bennett, announced 1) that the company has signed a new deal with Bresnan Communications that will see the cable operator serving approximately 200,000 subscribers with the OpenTV EclipsePlus campaign management system; 2) that it recently made the latest version of its Core2 middleware (whose features include "advance content search, enhanced on-screen graphics and home networking") generally available in the market, and that its integration teams are "busy in launch engagements with four key customers around the world"; 3) that it has been working with Australian pay-TV provider, Foxtel, on the next generation of its interactive TV platform, which is expected to launch later this month, and that the platform will include "exciting applications that demonstrate new ways for subscribers to discover content and make it easier, for example, to record the program they want without having to navigate through a traditional TV guide"; 4) that it has also been working closely with Foxtel on its interactive TV coverage of the 2010 Olympics, which will include "a new interactive mosaic application"; 5) that "a week or two ago" it signed "quite a major contract with a South American operator" that Bennett refused to identify; and 6) that it recently re-signed its annually renewable middleware contract with DISH Network (formerly EchoStar) and that it "could be looking at some new initiatives" with that company after Christmas.

In other OpenTV news: The Kudelski Group said Tuesday that it has extended through November 12th the expiration date of its tender offer to acquire all the company's outstanding Class A shares for $1.55 each in cash. The offer was previously scheduled to expire November 6th. "Kudelski decided to extend the expiration date to provide OpenTV shareholders ample time to consider all the relevant information disseminated since the commencement of the offer, including OpenTV's third quarter results being announced today," the company explained in a press release.

In other earnings news:

• IPTV set-top box company, Amino, warned Tuesday that it expects its financial performance for FY 2009 to be "significantly below market expectations" and that it expects to post "a material loss" for the second half. "A number of factors have combined during the half to mean that we now expect our financial performance to be below expectations," the company said. "First, orders that we had expected to close in the period have not closed and we are now looking to close them in FY 2010. Secondly, fulfilling booked orders has proved challenging due to component shortages at our suppliers which is likely to prevent us completing those orders and recognizing the revenue in this financial year." However, it added that it believes "the combined impact of [a] leaner cost base, improved order intake and healthy backlog into FY 2010 will...provide a solid platform for growth" and that it "retains a strong balance sheet with net cash balances of £8.0m at 31 October 2009."
• Video search specialist, Blinkx, announced Tuesday that it plans to offer increased stakes to its existing stakeholders, in order to raise £5 million, after spending £13 million of its cash reserves over the past year. The Guardian has more on this development and on the company's latest financial results.
• During Cablevision's earnings conference call, Tuesday, COO Tom Rutledge cited advertiser and consumer interest in its recently launched Optimum Select interactive TV advertising service as evidence that the economy may be improving. However, he provided little additional detail: "Total ad revenue was up sequentially 6% over Q2, something that is not usually true," he stated. "As for interactive advertising, it's a factor, but there seems to be some economic rebound." Paid Content has more.