While record companies claim to loose a lot of money because of digital piracy there is one company that is making good money out of it; Macrovision. They repored strong growth and their shares rose 19%.
Shares of Macrovision, whose software is used to prevent unauthorized copying of VHS tapes, DVDs, and CDs, rose $3.63 to $23 and were among the top net and percent gainers in early afternoon on the Nasdaq market. |
After the close of the market Monday, Sunnyvale, California-based Macrovision reported earnings excluding charges of 18 cents a share, handily beat the 16 cents a share analysts, on average, had expected, according to Thomson Financial/First Call.
The DVD division revenues grew by 39 percent, up from about 25 percent growth in the December quarter. The company also saw stronger-than-expected results from its Globetrotter Software, which helps software companies manage the product licenses they sell.
"There was some pessimism built into the stock," Thomas Weisel Partners analyst Keith Gay said. "Another possibility that looms ahead of them and could be a catalyst is a selection the movie industry is set to make for a copy-protection standard for DVD-to-DVD (copying), which should be coming within the next couple of days. That's a possible positive for the stock, too."
Well Macrovision is certainly the market leader in copy protections, their protections are pretty hard to bypass and they are in several markets like CD, DVD and VHS, I guess they will keep us busy for a while. (Hope they won't quote this on their site )
Source: Yahoo.com
