InterTrust Technologies Corporation Reports First Quarter 2001 Results

Apr 30, 2001, 01:00 ET from InterTrust Technologies Corporation

    SANTA CLARA, Calif., April 30 /PRNewswire/ --
 InterTrust Technologies Corporation (Nasdaq:   ITRU), the leading developer of
 distributed digital rights management technology, today reported financial
 results for its first quarter ended March 31, 2001.  For the first quarter,
 and in line with revised guidance given on April 12, 2001, revenues were
 $2.4 million, an 85 percent increase over revenues of $1.3 million in the same
 period of 2000, and a 17 percent decrease from revenues of $2.9 million in the
 fourth quarter of 2000.
     InterTrust reported a pro forma net loss for the first quarter of 2001,
 excluding non-cash charges for amortization of intangibles and deferred
 compensation, of $18.7 million, or $0.20 per share, compared to a pro forma
 loss of $8.5 million or $0.11 per share for the same period a year earlier and
 $12.9 million or $0.15 per share for the fourth quarter of 2000.
     The net loss for the first quarter was $21.6 million, or $0.24 per diluted
 share, compared to a total net loss of $15.6 million or $0.20 per share for
 the same period a year earlier and a net loss of $18.1 million, or $0.21 per
 share for the fourth quarter of 2000.  InterTrust ended the first quarter of
 2001 with approximately $176 million in cash and liquid investments,
 approximately the same as the balance at the beginning of the quarter.
     During the first quarter of 2001, InterTrust added 4 new licensees,
 including Nokia, bringing InterTrust's total number of licensees to 64.  The
 company was also issued one new patent during the quarter, bringing the total
 number of U.S. patents to 18.
     In response to the current revenue levels, the general economic climate,
 and opportunities for operating efficiencies from recent acquisitions, the
 Company has decided to implement a cost reduction program designed to reduce
 its current expense levels by approximately 15 percent.  This program includes
 headcount and discretionary expense reductions and is currently being
 implemented.  The Company does expect to incur additional costs in connection
 with its recently initiated litigation against Microsoft.
     "We are pleased with progress on our three major business objectives,
 despite the shortfall in revenue levels," said David Ludvigson, president of
 InterTrust Technologies.  "We have made good progress in product development
 and have increased emphasis on our Rights System platform.  We have now shown
 this technology in conjunction with Nokia, Adobe and Blockbuster/Enron.
 Development of our enterprise strategy is on track and we still expect initial
 enterprise projects by the end of the year.  Lastly, with our recently
 announced legal action against Microsoft, we have started to proactively
 secure the appropriate return for our intellectual property assets."
 
     Conference Call
     InterTrust has scheduled a conference call for 5:00 p.m. ET today to
 discuss results for the first quarter and the second quarter outlook. To
 listen to the call, please call 212-896-6081 approximately five minutes prior
 to the start of the call. For those who are not available to listen to the
 live conference call, a replay will be available via telephone from
 approximately 7:00 p.m. ET today until 7:00 p.m. ET on May 2. The access
 number for the replay is 800-633-8284; confirmation number 18620705.
     Additionally, the conference call will be broadcast live over the internet
 and can be accessed by all interested parties through InterTrust's website at
 www.Intertrust.com.  Please access the website at least fifteen minutes prior
 to the start of the call to register, download, and install any necessary
 audio software.
 
     About the Company
     InterTrust Technologies Corporation is the leading developer of
 peer-to-peer, distributed digital rights management (DRM) technology. Its
 general-purpose DRM trust platform serves as a foundation for trusted
 peer-to-peer and client server e-commerce. InterTrust holds numerous patents
 in the area of trusted systems technology and peer-to-peer rights management,
 and licenses its technology and patents in the form of software or hardware
 and tools to partners. These partners provide digital commerce services and
 applications that together form a global digital commerce network branded as
 the MetaTrust Utility(TM). InterTrust is the neutral administrator of the
 MetaTrust Utility network, defining and enforcing the rules that maintain the
 security, commercial reliability, and trusted interoperability of devices,
 services, and applications deployed on the platform.
 
     FORWARD-LOOKING STATEMENTS
     This press release contains forward-looking statements that are based on
 expectations and assumptions that involve a number of uncertainties and risks
 that could cause actual results to differ materially from those discussed in
 the forward-looking statements, including risks associated with the rapidly
 evolving markets for the company's products and uncertainties regarding the
 development of those markets; new product development and the ongoing
 introduction of new and enhanced products by the company and its competitors;
 intensive competition in the markets in which the company competes; the
 dependence on key personnel; and the reliance on international sales and
 operations.  Further information regarding these and other risks are included
 in the company's Form 10-K for the year ended December 31, 2000, in its
 prospectus' dated October 26, 1999 and April 6, 2000, and other filings that
 have been made with the Securities and Exchange Commission.
 
 
                        InterTrust Technologies Corporation
                  Condensed Consolidated Statements of Operations
                (in thousands, except per share amounts; unaudited)
 
                                                         Three Months Ended
                                                              March 31,
                                                        2001            2000
     Revenues:
      Licenses                                         $1,387           $687
      Software support and training                       730            660
      Services                                            270             --
      Hardware and other                                   18             --
       Total revenues                                   2,405          1,347
 
     Cost of revenues:
      Licenses                                            137            103
      Software support and training                       438            147
      Services                                          1,915             --
      Hardware and other                                  417             --
       Total cost of revenues                           2,907            893
     Gross profit (loss)                                (502)            454
 
     Operating costs and expenses:
      Research and development                          9,391          5,201
      Sales and marketing                               7,610          3,657
      General and administrative                        3,983          2,228
      Purchased in-process research and
       development                                         --          6,100
      Amortization of goodwill and other
       intangible assets                                2,193             --
      Amortization of deferred compensation               723          1,006
       Total operating costs and expenses              23,900         18,192
 
     Loss from operations                            (24,402)       (17,738)
     Interest and other income, net                     2,770          2,112
     Net loss                                       $(21,632)      $(15,626)
 
     Basic and diluted net loss per share             $(0.24)        $(0.20)
     Shares used in computing the net loss
      per share                                        91,485         78,931
 
     Loss per share excluding in-process
      research and development, amortization of
      deferred compensation and goodwill              $(0.20)        $(0.11)
 
 
                        InterTrust Technologies Corporation
                       Condensed Consolidated Balance Sheets
                             (in thousands; unaudited)
 
                                                     March 31,    December 31,
                                                       2001            2000
                          ASSETS
      Current assets:
      Cash and cash equivalents                       $23,513        $23,811
      Short-term investments                          125,569        134,707
      Accounts receivable, net                          3,126          3,928
      Other current assets                              3,509          2,771
       Total current assets                           155,717        165,217
      Property and equipment, net                      10,950          8,919
      Long-term investments                            26,766         17,727
      Goodwill and other intangible assets, net        39,216         29,453
      Other assets                                      5,914          5,557
                                                    $ 238,563      $ 226,873
 
            LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable                                 $2,089         $2,728
      Accrued compensation                              2,955          2,155
      Other accrued liabilities                         3,465          1,110
      Deferred revenue                                  4,536          5,915
       Total current liabilities                       13,045         11,908
     Deferred revenue -- long-term portion              7,948          7,617
     Other liabilities                                  1,921             --
     Total commitments                                 22,914         19,525
     Stockholders' equity                             215,649        207,348
     Total liabilities and stockholders' equity     $ 238,563      $ 226,873
 
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SOURCE InterTrust Technologies Corporation
    SANTA CLARA, Calif., April 30 /PRNewswire/ --
 InterTrust Technologies Corporation (Nasdaq:   ITRU), the leading developer of
 distributed digital rights management technology, today reported financial
 results for its first quarter ended March 31, 2001.  For the first quarter,
 and in line with revised guidance given on April 12, 2001, revenues were
 $2.4 million, an 85 percent increase over revenues of $1.3 million in the same
 period of 2000, and a 17 percent decrease from revenues of $2.9 million in the
 fourth quarter of 2000.
     InterTrust reported a pro forma net loss for the first quarter of 2001,
 excluding non-cash charges for amortization of intangibles and deferred
 compensation, of $18.7 million, or $0.20 per share, compared to a pro forma
 loss of $8.5 million or $0.11 per share for the same period a year earlier and
 $12.9 million or $0.15 per share for the fourth quarter of 2000.
     The net loss for the first quarter was $21.6 million, or $0.24 per diluted
 share, compared to a total net loss of $15.6 million or $0.20 per share for
 the same period a year earlier and a net loss of $18.1 million, or $0.21 per
 share for the fourth quarter of 2000.  InterTrust ended the first quarter of
 2001 with approximately $176 million in cash and liquid investments,
 approximately the same as the balance at the beginning of the quarter.
     During the first quarter of 2001, InterTrust added 4 new licensees,
 including Nokia, bringing InterTrust's total number of licensees to 64.  The
 company was also issued one new patent during the quarter, bringing the total
 number of U.S. patents to 18.
     In response to the current revenue levels, the general economic climate,
 and opportunities for operating efficiencies from recent acquisitions, the
 Company has decided to implement a cost reduction program designed to reduce
 its current expense levels by approximately 15 percent.  This program includes
 headcount and discretionary expense reductions and is currently being
 implemented.  The Company does expect to incur additional costs in connection
 with its recently initiated litigation against Microsoft.
     "We are pleased with progress on our three major business objectives,
 despite the shortfall in revenue levels," said David Ludvigson, president of
 InterTrust Technologies.  "We have made good progress in product development
 and have increased emphasis on our Rights System platform.  We have now shown
 this technology in conjunction with Nokia, Adobe and Blockbuster/Enron.
 Development of our enterprise strategy is on track and we still expect initial
 enterprise projects by the end of the year.  Lastly, with our recently
 announced legal action against Microsoft, we have started to proactively
 secure the appropriate return for our intellectual property assets."
 
     Conference Call
     InterTrust has scheduled a conference call for 5:00 p.m. ET today to
 discuss results for the first quarter and the second quarter outlook. To
 listen to the call, please call 212-896-6081 approximately five minutes prior
 to the start of the call. For those who are not available to listen to the
 live conference call, a replay will be available via telephone from
 approximately 7:00 p.m. ET today until 7:00 p.m. ET on May 2. The access
 number for the replay is 800-633-8284; confirmation number 18620705.
     Additionally, the conference call will be broadcast live over the internet
 and can be accessed by all interested parties through InterTrust's website at
 www.Intertrust.com.  Please access the website at least fifteen minutes prior
 to the start of the call to register, download, and install any necessary
 audio software.
 
     About the Company
     InterTrust Technologies Corporation is the leading developer of
 peer-to-peer, distributed digital rights management (DRM) technology. Its
 general-purpose DRM trust platform serves as a foundation for trusted
 peer-to-peer and client server e-commerce. InterTrust holds numerous patents
 in the area of trusted systems technology and peer-to-peer rights management,
 and licenses its technology and patents in the form of software or hardware
 and tools to partners. These partners provide digital commerce services and
 applications that together form a global digital commerce network branded as
 the MetaTrust Utility(TM). InterTrust is the neutral administrator of the
 MetaTrust Utility network, defining and enforcing the rules that maintain the
 security, commercial reliability, and trusted interoperability of devices,
 services, and applications deployed on the platform.
 
     FORWARD-LOOKING STATEMENTS
     This press release contains forward-looking statements that are based on
 expectations and assumptions that involve a number of uncertainties and risks
 that could cause actual results to differ materially from those discussed in
 the forward-looking statements, including risks associated with the rapidly
 evolving markets for the company's products and uncertainties regarding the
 development of those markets; new product development and the ongoing
 introduction of new and enhanced products by the company and its competitors;
 intensive competition in the markets in which the company competes; the
 dependence on key personnel; and the reliance on international sales and
 operations.  Further information regarding these and other risks are included
 in the company's Form 10-K for the year ended December 31, 2000, in its
 prospectus' dated October 26, 1999 and April 6, 2000, and other filings that
 have been made with the Securities and Exchange Commission.
 
 
                        InterTrust Technologies Corporation
                  Condensed Consolidated Statements of Operations
                (in thousands, except per share amounts; unaudited)
 
                                                         Three Months Ended
                                                              March 31,
                                                        2001            2000
     Revenues:
      Licenses                                         $1,387           $687
      Software support and training                       730            660
      Services                                            270             --
      Hardware and other                                   18             --
       Total revenues                                   2,405          1,347
 
     Cost of revenues:
      Licenses                                            137            103
      Software support and training                       438            147
      Services                                          1,915             --
      Hardware and other                                  417             --
       Total cost of revenues                           2,907            893
     Gross profit (loss)                                (502)            454
 
     Operating costs and expenses:
      Research and development                          9,391          5,201
      Sales and marketing                               7,610          3,657
      General and administrative                        3,983          2,228
      Purchased in-process research and
       development                                         --          6,100
      Amortization of goodwill and other
       intangible assets                                2,193             --
      Amortization of deferred compensation               723          1,006
       Total operating costs and expenses              23,900         18,192
 
     Loss from operations                            (24,402)       (17,738)
     Interest and other income, net                     2,770          2,112
     Net loss                                       $(21,632)      $(15,626)
 
     Basic and diluted net loss per share             $(0.24)        $(0.20)
     Shares used in computing the net loss
      per share                                        91,485         78,931
 
     Loss per share excluding in-process
      research and development, amortization of
      deferred compensation and goodwill              $(0.20)        $(0.11)
 
 
                        InterTrust Technologies Corporation
                       Condensed Consolidated Balance Sheets
                             (in thousands; unaudited)
 
                                                     March 31,    December 31,
                                                       2001            2000
                          ASSETS
      Current assets:
      Cash and cash equivalents                       $23,513        $23,811
      Short-term investments                          125,569        134,707
      Accounts receivable, net                          3,126          3,928
      Other current assets                              3,509          2,771
       Total current assets                           155,717        165,217
      Property and equipment, net                      10,950          8,919
      Long-term investments                            26,766         17,727
      Goodwill and other intangible assets, net        39,216         29,453
      Other assets                                      5,914          5,557
                                                    $ 238,563      $ 226,873
 
            LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable                                 $2,089         $2,728
      Accrued compensation                              2,955          2,155
      Other accrued liabilities                         3,465          1,110
      Deferred revenue                                  4,536          5,915
       Total current liabilities                       13,045         11,908
     Deferred revenue -- long-term portion              7,948          7,617
     Other liabilities                                  1,921             --
     Total commitments                                 22,914         19,525
     Stockholders' equity                             215,649        207,348
     Total liabilities and stockholders' equity     $ 238,563      $ 226,873
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X67214057
 
 SOURCE  InterTrust Technologies Corporation