Digimarc (DMRC) 8-K Digimarc Reports Fourth Quarter and Full Year 2012 Financial Results

Exhibit 99.1

Company Contacts:

Michael McConnell

Chief Financial Officer

503-469-4652

mmcconnell@digimarc.com

Scott Liolios or Matt Glover

Liolios Group, Inc.

Investor Relations for Digimarc

949-574-3860

info@liolios.com

FOR IMMEDIATE RELEASE

Digimarc Reports Fourth Quarter and Full Year 2012 Financial Results

2012 Operating Income Improved 128% Over 2011 on 23% Higher Revenues; Company

Declares Quarterly Dividend of $0.11 per Share

Beaverton, Ore. — February 21, 2013—Digimarc Corporation (NASDAQ: DMRC) reported financial results for the fourth quarter and fiscal year ended December 31, 2012.

Fourth Quarter 2012 Results

Revenues for the fourth quarter 2012 increased 4% to $9.3 million from $8.9 million in the same quarter a year ago. The increase was primarily attributable to higher licensing revenues from Verance and Intellectual Ventures (“IV”) as well as initial revenues for one month from Attributor Corporation, partially offset by the elimination of revenues from the suspension of operations of the Nielsen joint ventures in Q1 2012.

Operating income for the fourth quarter 2012 increased 60% to $1.9 million from $1.2 million in the same year-ago quarter. The increase reflects higher revenues and lower operating expenses.

Net income for the fourth quarter 2012 was $1.1 million or $0.14 per diluted share compared to $0.5 million or $0.06 per diluted share in the fourth quarter of 2011. The improvement in net income reflects increased revenues.

Full Year 2012 Results

Revenues in 2012 increased 23% to a record $44.4 million from $36.0 million in 2011. The improvement was driven primarily by the $8 million past due royalties payment from Verance received in Q1 2012 and from increased license payments from IV and Verance, partially offset by lower revenues from the suspension of the company’s joint ventures with Nielsen.

Operating income in 2012 increased 128% to $14.6 million from $6.4 million in 2011. The improvement reflects increased revenues, partially offset by slightly higher operating expenses as a result of the company’s recent acquisition of Attributor Corporation in December 2012.

Net income in 2012 increased 46% to $8.3 million or $1.12 per diluted share from $5.7 million or $0.76 per diluted share in 2011. The improvement primarily reflects increased revenues. Net income for 2011 includes losses from the suspended joint ventures as well as the reversal of the valuation allowance against deferred tax assets.

At December 31, 2012, cash, cash equivalents and marketable securities totaled $39.1 million, up from $33.4 million at December 31, 2011. This increase is net of the $5.4 million paid in connection with the Attributor acquisition.

On February 20, 2013, Digimarc declared a quarterly dividend of $0.11 per share on the outstanding common shares, payable on March 11, 2013 to shareholders of record at the close of business on March 4, 2013. The aggregate amount of the quarterly dividend payment is expected to be approximately $800,000.

The current investor presentation is available on Digimarc’s website at:

http://www.digimarc.com/investors/presentations

Conference Call

Digimarc will hold a conference call later today (Thursday, February 21, 2013) to discuss these results. The company’s Chairman and CEO Bruce Davis and CFO Mike McConnell will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s presentation.

The call will be broadcast live via webcast atwww.digimarc.com/investors and www.earnings.com, and will be available for replay until March 7, 2013. Thereafter, the webcast will be archived and available on Digimarc’s website atwww.digimarc.com/investors/investor-events-and-webcasts.

For those who wish to listen to the call via telephone, please dial the listen-only telephone number below at least 5-10 minutes prior to the scheduled start time:

Listen-Only Number: 866-562-9934

Conference ID#: 10340926

If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.

About Digimarc

Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded digital IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to “see, hear and understand” the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing, and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, please visitwww.digimarc.com.

Forward-looking Statements

With the exception of historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements and any related inferences regarding increases in services and license and subscription revenues, and other statements identified by terminology such as “will,” “should,” “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management’s opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company’s Form 10-K for the year ended December 31, 2012 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

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Digimarc Corporation

Income Statement Information

(in thousands, except per share amounts)

(Unaudited)

	Three-Month Information						Twelve-Month Information
	December 31,			December 31,			December 31,			December 31,
	2012			2011			2012			2011
Revenue:
Service	$	2,519		$	3,053		$	10,792		$	12,395
License & subscription		6,795			5,872			33,583			23,644
Total revenue		9,314			8,925			44,375			36,039
Cost of revenue:
Service		1,373			1,775			5,917			6,638
License & subscription		275			81			591			299
Total cost of revenue		1,648			1,856			6,508			6,937
Gross profit:
Service		1,146			1,278			4,875			5,757
License & subscription		6,520			5,791			32,992			23,345
Total gross profit		7,666			7,069			37,867			29,102
Gross margin:
Service		45	%		42	%		45	%		46	%
License & subscription		96	%		99	%		98	%		99	%
Total revenue		82	%		79	%		85	%		81	%
Operating expenses:
Sales and marketing		913			1,051			3,827			4,336
Research, development and engineering		2,277			1,710			8,741			7,327
General and administrative		2,226			2,839			9,457			9,956
Intellectual property		329			268			1,248			1,094
Total operating expenses		5,745			5,868			23,273			22,713
Operating income		1,921			1,201			14,594			6,389
Net loss from joint ventures		—			(784	)		(1,107	)		(2,714	)
Interest income, net		40			46			179			195
Income before income taxes		1,961			463			13,666			3,870
(Provision) benefit for income taxes		(907	)		(10	)		(5,394	)		1,786
Net income	$	1,054		$	453		$	8,272		$	5,656
Earnings per common share:
Net income per common share - basic	$	0.15		$	0.07		$	1.16		$	0.84
Net income per common share - diluted	$	0.14		$	0.06		$	1.12		$	0.76
Weighted average common shares outstanding - basic		6,791			6,699			6,757			6,741
Weighted average common shares outstanding - diluted		6,966			7,279			6,989			7,430
Cash dividends declared per common share:	$	0.11		$	—		$	0.33		$	—

Digimarc Corporation

Balance Sheet Information

(in thousands)

(Unaudited)

	December 31,		December 31,
	2012		2011
Assets
Current assets:
Cash and cash equivalents(1)	$	6,866	$	3,419
Marketable securities(1)		25,403		22,244
Trade accounts receivable, net		4,216		3,502
Other current assets		1,016		1,306
Total current assets		37,501		30,471
Marketable securities(1)		6,787		7,715
Property and equipment, net		1,453		1,395
Intangible assets, net		6,721		2,808
Goodwill		1,114		—
Investments in joint ventures		—		415
Deferred tax assets, net		3,589		2,634
Other assets		166		355
Total assets	$	57,331	$	45,793
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and other accrued liabilities	$	1,143	$	952
Deferred revenue		2,512		2,660
Total current liabilities		3,655		3,612
Deferred rent and other long-term liabilities		673		464
Total liabilities		4,328		4,076
Commitments and contingencies
Shareholders’ equity:
Preferred stock		50		50
Common stock		7		7
Additional paid-in capital		39,869		34,511
Retained earnings		13,077		7,149
Total shareholders’ equity		53,003		41,717
Total liabilities and shareholders’ equity	$	57,331	$	45,793

(1) Aggregate cash, cash equivalents, short- and long-term marketable securities was $39,056 and $33,378 at December 31, 2012 and 2011, respectively.

Digimarc Corporation

Cash Flow Information

(in thousands)

(Unaudited)

	Three-Month Information						Twelve-Month Information
	December 31,			December 31,			December 31,			December 31,
	2012			2011			2012			2011
Cash flows from operating activities:
Net income	$	1,054		$	453		$	8,272		$	5,656
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment		156			139			600			613
Amortization and write-off of intangibles		172			38			385			143
Stock-based compensation		1,054			1,178			5,256			4,216
Net loss from joint ventures		—			784			1,107			2,714
Deferred income taxes		(207	)		(202	)		(284	)		(3,640	)
Tax benefit from stock-based awards		1,303			274			3,688			1,871
Excess tax benefit from stock-based awards		(1,243	)		(274	)		(3,044	)		(1,066	)
Changes in operating assets and liabilities:
Trade accounts receivable, net		(59	)		(82	)		(187	)		(21	)
Other current assets		264			109			219			240
Other assets		34			73			201			107
Accounts payable and other liabilities		(934	)		(741	)		(228	)		(668	)
Deferred revenue		128			729			(384	)		88
Net cash provided by operating activities		1,722			2,478			15,601			10,253
Cash flows from investing activities:
Purchase of property and equipment		(194	)		(66	)		(570	)		(678	)
Capitalized patent costs and purchased intellectual property		(272	)		(168	)		(1,170	)		(712	)
Investments in joint ventures, net		—			—			(692	)		(2,100	)
Business acquisitions, net of cash acquired		(5,092	)		—			(5,092	)		—
Sale or maturity of marketable securities		26,534			14,385			144,214			74,689
Purchase of marketable securities		(24,312	)		(15,247	)		(146,444	)		(65,044	)
Net cash provided by (used in) investing activities		(3,336	)		(1,096	)		(9,754	)		6,155
Cash flows from financing activities:
Issuance of common stock		212			96			1,660			1,651
Purchase of common stock		(861	)		(452	)		(4,760	)		(22,046	)
Cash dividends paid		(783	)		—			(2,344	)		—
Excess tax benefit from stock-based awards		1,243			274			3,044			1,066
Net cash used in financing activities		(189	)		(82	)		(2,400	)		(19,329	)
Net increase (decrease) in cash and cash equivalents(2)	$	(1,803	)	$	1,300		$	3,447		$	(2,921	)
Cash equivalents and marketable securities at beginning of period		43,080			31,216			33,378			45,944
Cash equivalents and marketable securities at end of period		39,056			33,378			39,056			33,378
(2) Net increase (decrease) in cash, cash equivalents and marketable securities	$	(4,024	)	$	2,162		$	5,678		$	(12,566	)

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