Rentrak Corp. Reports Operating Results (10-Q)
Rentrak Corp. has a market cap of $279.1 million; its shares were traded at around $26.17 with a P/E ratio of 124.6 and P/S ratio of 3.1. RENT is in the portfolios of Jean-Marie Eveillard of First Eagle Investment Management, LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Revenue increased $3.0 million, or 13.5%, to $24.6 million in the first quarter of fiscal 2011 compared to $21.6 million in the first quarter of fiscal 2010. The increase in revenue was primarily due to an increase in AMI revenue related to our acquisition of Nielsens EDI Business in the fourth quarter of fiscal 2010, as well as growth in other AMI lines of business, offset by declines in revenue from the Home Entertainment Division. These fluctuations are described in more detail below.
Cost of sales decreased $0.3 million, or 2.3%, in the first quarter of fiscal 2011. The Home Entertainment Divisions cost of sales decreased $1.4 million as a result of lower revenues and was relatively flat as a percentage of revenues compared to the same period of the prior fiscal year. This was offset by a $1.0 million increase in cost of sales in the AMI Division due to the growth in revenues. As a percentage of
Selling and administrative expenses increased $3.5 million, or 49.9%, in the first quarter of fiscal 2011. This increase was primarily due to a $1.6 million increase in stock-based compensation and a $1.8 million increase related to the EDI Business acquisition.
Cash and cash equivalents and marketable securities increased $4.0 million to $23.9 million at June 30, 2010. This increase resulted primarily from $3.8 million provided by operating activities and $1.0 million provided from the issuance of our common stock from the exercise of stock options. These factors were partially offset by $1.1 million used for the purchase of equipment and capitalized IT costs.
During the first quarter of fiscal 2011, we spent $1.1 million on property and equipment, including $0.8 million for the capitalization of internally developed software for our business information service offerings. We anticipate spending a total of approximately $5.1 million on property and equipment in fiscal 2011, including approximately $3.8 million for the capitalization of internally developed software, primarily for our business information service offerings as we expand our Multi-Screen Essentials lines of business and integrate and/or replace systems relating to the EDI-Business acquisition. The remaining capital expenditures in fiscal 2011 will be primarily for computer equipment.
Accrued compensation increased $0.7 million to $3.1 million at June 30, 2010, primarily due to a $0.6 million increase in accrued stock-based compensation that will be settled in cash related to an agreement with a non-employee.
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