Exhibit 99
InterVideo Reports Results for Second Quarter of 2003
Wednesday August 6, 2003
InterVideo’s Second Quarter 2003 Net Income Grows 90% Year Over Year
Fremont, Calif., August 6, 2003 /PRNewswire-FirstCall/ — InterVideo, Inc. (Nasdaq: IVII—News), a leading provider of DVD software, today reported financial results for its second quarter and six months ended June 30, 2003. Revenue for the second quarter of 2003 grew 11% to $13.1 million from $11.8 million in the second quarter of 2002.
InterVideo’s net income for the second quarter of 2003 was $1.6 million, or $0.61 per basic share and $0.13 per diluted share, as compared with net income in the second quarter of the prior year of $829,000, or $0.33 per basic share and $0.07 per diluted share.
Revenue for the six months ended June 30, 2003 was $26.5 million, as compared to revenue of $23.0 million for the six months ended June 30, 2002. InterVideo’s net income for the first six months of 2003 was $3.2 million, or $1.25 per basic share and $0.26 per diluted share, compared to net income of $1.9 million, or $0.80 per basic share and $0.16 per diluted share, for the same period in 2002.
With a sales increase of 11 percent and a net profit increase of 90 percent over the same quarter last year, InterVideo’s president & CEO, Steve Ro, said that the company was on target to broaden its product lines and customer base. “WinDVD continues to be the flagship DVD playback solution for PCs, and is emerging as an important component for new consumer electronics products such as DVRs and DVD recorders,” Ro commented, “We are continuing to expand our DVD content creation products with WinDVD Creator 2.0 and InterVideo DVD Copy 1.1. These products along with WinDVD are designed to provide PC OEMs and consumers with a complete, integrated solution for DVD RW drives.”
The InterVideo Second Quarter teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time, on Wednesday, August 6, 2003. To participate on the live call, analysts, investors and the general public should dial 800-810-0924 at least ten minutes prior to the call. InterVideo will also offer a live and archived webcast of the conference call, accessible from the “Investor Relations” section of the company’s Web site athttp://www.investor.intervideo.com/medialist.cfm
About InterVideo, Inc.
InterVideo is a leading provider of DVD software. InterVideo has developed a technology platform from which it has created a broad suite of integrated multimedia software products that allow users to capture, edit, author, burn, distribute, and play digital video. InterVideo’s software is bundled with products sold by eight of the top ten PC OEMs ranked in terms of sales by IDC, as derived from the IDC Worldwide Quarterly PC Tracker, March 2003. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, contact InterVideo at 510/651-0888 or visit the company’s Web site atwww.intervideo.com.
Safe Harbor Statement
Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo’s product market, product development and future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast customer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, the resolution of any notices of claims regarding alleged infringement of third parties’ intellectual property rights, the ability to maintain or expand our relationship with PC OEMS and other risks and
uncertainties. Please consult the various reports and documents filed by InterVideo with the U.S. Securities and Exchange Commission, including but not limited to InterVideo’s Form S-1/A for other risk factors that could cause actual results to differ. All forward-looking statements are made as of the date hereof and InterVideo disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The results for the quarter and six months ended June 30, 2003 are not necessarily indicative of InterVideo’s operating results for any future periods.
InterVideo is a registered trademark of InterVideo, Inc. All other trademarks are the property of their respective holders.
INTERVIDEO, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, | Six months ended June 30 | |||||||||||||
2002 | 2003 | 2002 | 2003 | |||||||||||
Revenue | $ | 11,802 | $ | 13,099 | $ | 22,969 | $ | 26,472 | ||||||
Cost of revenue: | ||||||||||||||
Product costs | 4,172 | 5,393 | 8,128 | 10,823 | ||||||||||
Amortization of software license agreement | 5 | 5 | 18 | 10 | ||||||||||
Total cost of revenue | 4,177 | 5,398 | 8,146 | 10,833 | ||||||||||
Gross Profit | 7,625 | 7,701 | 14,823 | 15,639 | ||||||||||
Operating Expenses: | ||||||||||||||
Research and development | 1,905 | 1,908 | 3,927 | 3,622 | ||||||||||
Sales and marketing | 1,922 | 2,120 | 3,681 | 4,395 | ||||||||||
General and administrative | 1,006 | 894 | 1,902 | 1,845 | ||||||||||
Stock compensation | 813 | 217 | 1,734 | 550 | ||||||||||
Restructuring cost | (20 | ) | — | (20 | ) | — | ||||||||
Total operating expenses | 5,626 | 5,139 | 11,224 | 10,412 | ||||||||||
Income from operations | 1,999 | 2,562 | 3,599 | 5,227 | ||||||||||
Other income (expenses), net | (107 | ) | 69 | (31 | ) | 155 | ||||||||
Income before tax | 1,892 | 2,631 | 3,568 | 5,382 | ||||||||||
Provision for income tax | 1,063 | 1,057 | 1,659 | 2,200 |
Net income after tax | $ | 829 | $ | 1,574 | $ | 1,909 | $ | 3,182 | ||||
Earnings per share: | ||||||||||||
Basic | $ | 0.33 | $ | 0.61 | $ | 0.80 | $ | 1.25 | ||||
Diluted | $ | 0.07 | $ | 0.13 | $ | 0.16 | $ | 0.26 | ||||
Weighted average shares used in computing earnings per share: | ||||||||||||
Basic | 2,485 | 2,561 | 2,388 | 2,551 | ||||||||
Diluted | 11,822 | 12,096 | 11,702 | 12,127 |
INTERVIDEO, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
As of | ||||||
Dec 31, 2002 | June 30, 2003 | |||||
(unaudited) | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 17,137 | $ | 18,438 | ||
Short term investments | 4,104 | 4,783 | ||||
Accounts receivable | 3,902 | 4,375 | ||||
(net of allowance of $205 and $155 respectively) | ||||||
Deferred tax assets | 2,122 | 2,128 | ||||
Prepayments and other current assets | 694 | 2,277 | ||||
Total current assets | 27,959 | 32,001 | ||||
Property and equipment, net | 1,566 | 1,405 | ||||
Goodwill | 1,018 | 1,018 | ||||
Other purchased intangible assets | 483 | 383 | ||||
Deferred tax assets | 3,335 | 3,335 | ||||
Other assets | 355 | 385 | ||||
Total assets | $ | 34,716 | $ | 38,527 | ||
Current liabilities: | ||||||
Accounts payable | $ | 413 | $ | 678 |
Accrued liabilities | 9,639 | 9,305 | ||||||
Income tax payable | 1,111 | 1,118 | ||||||
Deferred revenue | 1,112 | 1,220 | ||||||
Total current liabilities | 12,275 | 12,321 | ||||||
Stockholders’ equity: | ||||||||
Convertible preferred stock, | 13 | 13 | ||||||
aggregate liquidation preference of $23,855; 13,000 shares authorized; 12,839 shares issued and outstanding | ||||||||
Common Stock, | 3 | 3 | ||||||
$0.001 par value per share; 25,000 shares authorized; 2,644 and 2,654 shares issued and outstanding respectively | ||||||||
Additional paid-in capital | 35,197 | 35,119 | ||||||
Notes receivable from stockholders | (864 | ) | (885 | ) | ||||
Deferred stock compensation | (1,614 | ) | (962 | ) | ||||
Accumulated other comprehensive loss | (180 | ) | (150 | ) | ||||
Accumulated deficit | (10,114 | ) | (6,932 | ) | ||||
Total stockholder’s equity | 22,441 | 26,206 | ||||||
Total liabilities and stockholders’ equity | $ | 34,716 | $ | 38,527 | ||||