OpenTV Corp. (OPTV, Financial) filed Quarterly Report for the period ended 2009-03-31.
OpenTV Corp. is a leading worldwide provider of software that enables digital interactive television. The digital interactive solution enhances a television viewer's experience without changing viewing habits and provides a rich audio and video television environment for enhancedapplications such as e-commerce. Using a standard remote control viewers can access real-time statistics buy team merchandise and purchasetickets while watching a sporting event purchase compact discs and learn more about recording artists while watching music videos. OpenTV Corp. has a market cap of $203 million; its shares were traded at around $1.47 with a P/E ratio of 36.8 and P/S ratio of 1.7.
British Sky Broadcasting (BSkyB), directly and indirectly through our set-top box manufacturer customers who sell set-top boxes to BSkyB, accounted for $4.9 million, or 23%, of our total worldwide royalties and licenses revenues for the three months ended March 31, 2009. BSkyB royalties and licenses revenues decreased by $0.8 million compared to the same period in 2008, primarily due to a volume-based price reduction that became effective during the three months ended March 31, 2009. This volume-based price reduction may negatively impact the overall level of revenues that we generate from BSkyB in the future unless we are able to offset the effect of such reduction through increased deployments of our products, an upgrade to a new version of our product that is not subject to the price reduction or some other means. Royalties and licenses revenues from Portugal Telecom, which we started to receive in late 2008 through our license and distribution agreement with Nagravision, accounted for an increase of $0.8 million in the three months ended March 31, 2009. Royalties and licenses revenues from Multichoice Africa increased $0.5 million as compared to the same period in 2008, primarily due to increased deployments of our products. The remaining increase of $0.7 million in royalties and licenses revenues resulted from higher volumes of deployments of our products by other customers.
EchoStar, including DISH Network and EchoStar Technologies LLC, accounted for $2.5 million, or 12%, of our total worldwide royalties and licenses revenues for the three months ended March 31, 2009. Royalties and licenses revenues from EchoStar increased $0.9 million as compared to the same period in 2008, primarily due to the receipt of a late royalty report during the three months ended March 31, 2009 for set-top boxes that were shipped during 2008 but not previously reported to us. Royalties and licenses revenues from Time Warner and Comcast decreased $0.6 million and $0.4 million, respectively, compared to the same period in 2008, primarily due to a new pricing model that became effective as part of an upgrade sold to these customers for our latest EclipsePlus product. This pricing model includes a one-time, upfront license fee that is typically recognized over the term of contract as compared to our prior pricing model under which we recognized license fees as received. Royalties and licenses revenues from other customers in the region accounted for a net decrease of $0.5 million compared to the same period in 2008 due to lower volumes of deployments of our products.
Royalties and licenses revenues from Austar Entertainment Pty Ltd (Austar) decreased $1.2 million as compared to the same period in 2008, primarily due to the receipt of a late royalty report during the three months ended March 31, 2008 for set-top boxes that were shipped during 2007 but not previously reported to us. Royalties and licenses revenues from Panasonic Corporation decreased $0.6 million primarily due to a volume-based price reduction that became effective during the three months ended March 31, 2009. Royalties and licenses revenues from Jupiter Telecommunications Co., Ltd. (JCOM) decreased $0.3 million primarily due to a decrease in deployments of our products. These decreases were partially offset by an increase of $0.4 million in royalties and licenses revenues from Sky Network Television Ltd. due to an increase in deployments of our products. Royalties and licenses revenues from other customers accounted for a net increase of $0.5 million due to lower volumes of deployments of our products.
Cost of services and other for the three months ended March 31, 2009 decreased $0.1 million, or 1%, to $10.0 million. As a percentage of revenues, cost of services and other increased to 34% for the three months ended March 31, 2009 as compared to 30% in the same period in 2008. Personnel and personnel-related support costs decreased $0.4 million partially resulting from our general efforts to shift our workforce to regions with lower costs and the impact of foreign currency translation on our costs denominated in foreign currencies due to the overall strengthening of the United States dollar during the three months ended March 31, 2009, as compared to the same period in 2008, which were offset by an increase in headcount. In addition, during the three months ended March 31, 2008, we recorded a bonus expense of $0.2 million and share-based compensation expense of $0.2 million related to the 2007 Management Bonus and Equity Issuance Plan which did not recur during the three months ended March 31, 2009. The decreases were partially offset by an increase of $0.2 million in the provision for service contracts that are under loss position and an increase of $0.1 million in consulting and subcontractor costs incurred to meet staffing requirements for our current and anticipated projects.
Sales and marketing expenses for the three months ended March 31, 2009 decreased $0.5 million, or 21%, to $1.9 million. As a percentage of revenues, sales and marketing expenses decreased to 6% for the three months ended March 31, 2009 as compared to 7% in the same period in 2008. Personnel and personnel-related support costs decreased $0.4 million partially due to a decrease in headcount. In addition, during the three months ended March 31, 2008, we recorded a bonus expense of $0.1 million and share-based compensation expense of $0.1 million related to the 2007 Management Bonus and Equity Issuance Plan which did not recur during the three months ended March 31, 2009.
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OpenTV Corp. is a leading worldwide provider of software that enables digital interactive television. The digital interactive solution enhances a television viewer's experience without changing viewing habits and provides a rich audio and video television environment for enhancedapplications such as e-commerce. Using a standard remote control viewers can access real-time statistics buy team merchandise and purchasetickets while watching a sporting event purchase compact discs and learn more about recording artists while watching music videos. OpenTV Corp. has a market cap of $203 million; its shares were traded at around $1.47 with a P/E ratio of 36.8 and P/S ratio of 1.7.
Highlight of Business Operations:
Revenues for the three months ended March 31, 2009 were $29.4 million, a decrease of $4.4 million, or 13%, from $33.8 million for the same period in 2008.British Sky Broadcasting (BSkyB), directly and indirectly through our set-top box manufacturer customers who sell set-top boxes to BSkyB, accounted for $4.9 million, or 23%, of our total worldwide royalties and licenses revenues for the three months ended March 31, 2009. BSkyB royalties and licenses revenues decreased by $0.8 million compared to the same period in 2008, primarily due to a volume-based price reduction that became effective during the three months ended March 31, 2009. This volume-based price reduction may negatively impact the overall level of revenues that we generate from BSkyB in the future unless we are able to offset the effect of such reduction through increased deployments of our products, an upgrade to a new version of our product that is not subject to the price reduction or some other means. Royalties and licenses revenues from Portugal Telecom, which we started to receive in late 2008 through our license and distribution agreement with Nagravision, accounted for an increase of $0.8 million in the three months ended March 31, 2009. Royalties and licenses revenues from Multichoice Africa increased $0.5 million as compared to the same period in 2008, primarily due to increased deployments of our products. The remaining increase of $0.7 million in royalties and licenses revenues resulted from higher volumes of deployments of our products by other customers.
EchoStar, including DISH Network and EchoStar Technologies LLC, accounted for $2.5 million, or 12%, of our total worldwide royalties and licenses revenues for the three months ended March 31, 2009. Royalties and licenses revenues from EchoStar increased $0.9 million as compared to the same period in 2008, primarily due to the receipt of a late royalty report during the three months ended March 31, 2009 for set-top boxes that were shipped during 2008 but not previously reported to us. Royalties and licenses revenues from Time Warner and Comcast decreased $0.6 million and $0.4 million, respectively, compared to the same period in 2008, primarily due to a new pricing model that became effective as part of an upgrade sold to these customers for our latest EclipsePlus product. This pricing model includes a one-time, upfront license fee that is typically recognized over the term of contract as compared to our prior pricing model under which we recognized license fees as received. Royalties and licenses revenues from other customers in the region accounted for a net decrease of $0.5 million compared to the same period in 2008 due to lower volumes of deployments of our products.
Royalties and licenses revenues from Austar Entertainment Pty Ltd (Austar) decreased $1.2 million as compared to the same period in 2008, primarily due to the receipt of a late royalty report during the three months ended March 31, 2008 for set-top boxes that were shipped during 2007 but not previously reported to us. Royalties and licenses revenues from Panasonic Corporation decreased $0.6 million primarily due to a volume-based price reduction that became effective during the three months ended March 31, 2009. Royalties and licenses revenues from Jupiter Telecommunications Co., Ltd. (JCOM) decreased $0.3 million primarily due to a decrease in deployments of our products. These decreases were partially offset by an increase of $0.4 million in royalties and licenses revenues from Sky Network Television Ltd. due to an increase in deployments of our products. Royalties and licenses revenues from other customers accounted for a net increase of $0.5 million due to lower volumes of deployments of our products.
Cost of services and other for the three months ended March 31, 2009 decreased $0.1 million, or 1%, to $10.0 million. As a percentage of revenues, cost of services and other increased to 34% for the three months ended March 31, 2009 as compared to 30% in the same period in 2008. Personnel and personnel-related support costs decreased $0.4 million partially resulting from our general efforts to shift our workforce to regions with lower costs and the impact of foreign currency translation on our costs denominated in foreign currencies due to the overall strengthening of the United States dollar during the three months ended March 31, 2009, as compared to the same period in 2008, which were offset by an increase in headcount. In addition, during the three months ended March 31, 2008, we recorded a bonus expense of $0.2 million and share-based compensation expense of $0.2 million related to the 2007 Management Bonus and Equity Issuance Plan which did not recur during the three months ended March 31, 2009. The decreases were partially offset by an increase of $0.2 million in the provision for service contracts that are under loss position and an increase of $0.1 million in consulting and subcontractor costs incurred to meet staffing requirements for our current and anticipated projects.
Sales and marketing expenses for the three months ended March 31, 2009 decreased $0.5 million, or 21%, to $1.9 million. As a percentage of revenues, sales and marketing expenses decreased to 6% for the three months ended March 31, 2009 as compared to 7% in the same period in 2008. Personnel and personnel-related support costs decreased $0.4 million partially due to a decrease in headcount. In addition, during the three months ended March 31, 2008, we recorded a bonus expense of $0.1 million and share-based compensation expense of $0.1 million related to the 2007 Management Bonus and Equity Issuance Plan which did not recur during the three months ended March 31, 2009.
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