Digimarc Corporation · NASDAQ:DMRC
Digimarc — 5th Annual D.A. Davidson Technology Conference (February 2007)
21 slides from Digimarc's conference presentation, Feb 22, 2007
Slide 1: Enabling Trusted Relationships
Enabling Trusted Relationships 5th Annual D.A. Davidson Technology Conference February 22, 2007 Copyright © 2007 Digimarc Corporation
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information contained in this presentation, the matters described herein contain certain “forward-looking statements” that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statement
Slide 3: Our Mission: Enabling Trusted Relationships
Our Mission Enabling Trusted Relationships Leading provider and innovator of technologies and solutions to secure and advance important economic and social relationships. Digital watermarking Secure ID solutions - Prevent counterfeiting - Enhance transportation safety - Protect media content from -
Slide 4: A Customer-Focused Company
Digimarc Values Drive Profitable Growth A Customer-Focused Company Earn lifetime relationships | Exhibit honesty and integrity | Train our employees Accept personal accountability for commitments | Maintain respectful relationships Experts in our field | Leading innovator in technology and processes
Slide 5: Secure Media and Identity Management
Secure Media and Identity Management Digital Watermarking INTELLECTUAL Pioneer and worldwide leader in digital PROPERTY watermarking Anti-counterfeiting Systems Banknote counterfeit deterrence system Foster large-scale adoption under license to DMRC patents More than 300 U.S. patents Movies
Slide 6: Digital Watermark Identification for Media Objects
Digital Watermark Identification for Media Objects Imperceptible, pervasive, persistent Banknotes and Secure IDs Machine-readable data For video, audio, images and print Music, Movies Format and domain and Photos independent Communicate, authenticate, and identify media objects Provide s
Slide 7: Digital Watermarking Strategy
Digital Watermarking Strategy Built world class licensable IP asset Assembled highly skilled licensing organization Mobile Established reputation Images & Print Licensed numerous business partners Seeded the market Music & Radio Time to harvest ROI, while continuing IP and market Counter
Slide 8: 21st Century "DRM"
21st Century “DRM” 1st generation DRM failure Entertainment media distribution has gone “non- linear” Entertainment industry gravitating to digital watermarking across production and distribution Social networking and P2P pose great threats and opportunities for media companies Watermarkin
Slide 9: Digital Watermarking Investment Opportunity
Digital Watermarking Investment Opportunity Industry leading technology and IP portfolio Rate of adoption is accelerating across various applications Favorable market conditions in media production, distribution and consumption Maturation of multi- year market development for IDMarc and Digi
Slide 10: Leading Supplier of Secure Government-issued Credentials
Leading Supplier of Secure Government-issued Credentials Leading supplier of government-issued credentials in North America 2/3 of all US driver licenses; prime beneficiary of REAL ID in America Driver licenses, voter IDs, national IDs, etc. in more than 25 countries Our IDs enable many serv
Slide 11: Digimarc Secure ID Lifecycle
Digimarc Secure ID Lifecycle Enrollment Production Credential Inspection Æ Multiple perspectives on Æ Over The Counter Æ Advanced card materials Æ Multiple perspectives on the applicant issuance the credential Æ Secure card Æ Applicant data architectures Æ Improvements to verification visual inspect
Slide 12: REAL ID: Increased Investment in Driver License
REAL ID: Increased Investment in Driver License Based on Sound Identity Management Principles Enhances Homeland Security, Transportation Safety and Economic Security Estimated $11 billion over 5 years Enhance all aspects of the issuance process - Incumbent supplier to 70% of the market DWM DWM -
Slide 13: Virtuous Circle of Driver License Investment and Value
Virtuous Circle of Driver License Investment and Value Value Investment Copyright © 2007 Digimarc Corporation 13
Slide 14: Digital Watermarking Enhances Driver License Inspection
Digital Watermarking Enhances Driver License Inspection Unaided visual inspection is inadequate due to: • More than 200 different U.S. DL designs • Unfamiliarity with out-of-state licenses • Skill and experience required to be able to spot a fake ID • Darkness or areas with limited visibility • St
Slide 15: Secure Credential Investment Opportunity
Secure Credential Investment Opportunity Leading supplier of government- issued credentials in North America Value of, and funding for, Secure IDs is increasing REAL ID may dramatically increase US market Gain greater “share of pocket” by expanding portfolio of products and services as trust
Slide 16: 2007 Key Objectives
2007 Key Objectives Deliver sustained profitability Grow revenues and backlog profitably Understand our customers better than any other supplier Improve efficiency in all that we do Improve the learning and growth environment for employees Copyright © 2007 Digimarc Corporation 16
Slide 17: 2007 Risks and Opportunities
2007 Risks and Opportunities Revenue upside • REAL ID, competitive wins, system upgrades, expanded offerings • International ID markets • Market adoption of digital watermarking • Non-organic growth Financial leverage • Continuing R&D and alliance-building • Improvements to internal business pro
Slide 18: 2007 Financial Outlook
2007 Financial Outlook Revenues to grow at or above the 5-10% range of past several years – possibly higher depending on scale and timing of impact of revenue growth drivers Profitable growth, even at lower end of revenue range • EPS to improve more than $.60 over 2006 results • Q1 loss similar
Slide 19: Exciting Growth Prospects
Exciting Growth Prospects Real ID, Intl ID, digital watermarking UPSIDE ?? GUIDANCE RANGE: 5-10% Sustained profitable growth • Trusted and responsive supplier • Wise R&D investment • Strategic partnerships • Business process and workforce improvements 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 20: Financial Highlights
Financial Highlights Stock Symbol: Nasdaq: DMRC Principal Locations: Beaverton, OR; Burlington, MA; Fort Wayne, IN Revenue Run Rate: More than $100 million Backlog: $250+ million, with 95% from long term contracts with government agencies Leading Indicators: EBITDA and other measures of cash flow
Slide 21: Secure Identity & Media Management Solutions
Secure Identity & Media Management Solutions Enabling Trusted Relationships Copyright © 2007 Digimarc Corporation
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