WOBURN, Mass.--(BUSINESS WIRE)--Monotype (Nasdaq: TYPE), a leader in helping to empower expression and engagement through type, technology and expertise, today announced financial results for the second quarter ended June 30, 2016. This announcement follows the company’s July 21 announcement that it intends to acquire Olapic. A 190-person company based in New York City, Olapic offers a leading visual marketing platform for the curation, activation, and analysis of Earned Content.

Second quarter 2016 highlights

• Revenue for the quarter was $48.7 million, an increase of 5 percent, year over year.
• Creative Professional revenue was $23.5 million, up 13 percent.
• Net income was $6.7 million and non-GAAP net adjusted EBITDA was $17.1 million, or 35 percent of revenue.
• Cash and cash equivalents stood at $109.5 million.

“Monotype’s business is solid, and in the second quarter, we saw another strong performance from Creative Professional,” said Scott Landers, president and chief executive officer of Monotype. “Brands are increasingly turning to us for help in addressing new design and marketing use cases. We believe that our ability to meet these new needs – through our current solutions and over time through those from Olapic – will continue to be a sustainable, long-term growth driver for the company.”

Joe Hill, executive vice president and chief financial officer of Monotype, said, “We remain encouraged by the continued traction within the Creative Professional business, which we believe is being positively impacted by the investments we’ve made over the past several years. These investments are allowing Monotype to add value for our customers to address multiple use cases within their organizations, which makes our offerings even more attractive to brands.”

Second quarter 2016 operating results
Revenue for the quarter increased five percent to $48.7 million, compared to $46.4 million for the second quarter of 2015. Creative Professional revenue was $23.5 million, a 13 percent increase from the second quarter of 2015. OEM revenue was $25.3 million, a decrease of 2 percent from the same period in 2015.

GAAP net income was $6.7 million, compared to $5.9 million in the second quarter of 2015. Earnings per diluted share were $0.16, compared to $0.15 in the prior year quarter.

Non-GAAP net adjusted EBITDA was $17.1 million, or 35 percent of revenue, compared to $16.4 million in the second quarter of 2015.

Non-GAAP net income, which excludes the amortization of intangible assets, stock-based compensation expense and acquisition-related contingent consideration expense, net of taxes, was $10.7 million, compared to $9.3 million in the second quarter of 2015. Non-GAAP earnings per diluted share were $0.27 compared to $0.24 in the prior year period.

Cash and cash flow
Monotype had cash and cash equivalents of $109.5 million as of June 30, 2016, compared to $95.4 million as of March 31, 2016 and $74.6 million as of June 30, 2015. The company generated $17.7 million of cash from operations in the second quarter of 2016.

Quarterly dividend
Monotype’s most recent dividend payment of $0.11 per share was paid on July 21, 2016, to shareholders of record as of July 1, 2016. The next dividend payment of $0.11 per share will be paid on October 21, 2016, to shareholders of record as of the close of business on October 3, 2016.

Financial outlook
For the third quarter of 2016, Monotype expects revenue in the range of $49.0 million to $52.0 million. The company anticipates third quarter 2016 net income in the range of $5.5 million to $7.2 million, non-GAAP net adjusted EBITDA in the range of $16.5 million to $19.0 million, earnings per diluted share in the range of $0.14 to $0.18 and non-GAAP earnings per diluted share in the range of $0.24 to $0.28.

Monotype has analyzed the impact of FX changes following Brexit, and as a result, is lowering its previously issued, full year 2016 guidance to reflect the expected impact of exchange rates on revenue and earnings, which is expected to have a $2.5 million dollar full-year impact on revenue and $1.0 million dollar impact on non-GAAP net adjusted EBITDA. The company now expects revenue in the range of $199.5 million to $205.5 million. Monotype expects full year 2016 net income in the range of $25.4 million to $28.6 million, non-GAAP net adjusted EBITDA in the range of $71.0 million to $76.0 million, earnings per diluted share in the range of $0.64 to $0.72 and non-GAAP earnings per diluted share in the range of $1.05 to $1.13. The company’s guidance does not include the impact of its proposed acquisition of Olapic.

About Monotype

Monotype is a leading global provider of typefaces, technology and expertise that enable the best user experience and ensure brand integrity. Headquartered in Woburn, Mass., Monotype provides customers worldwide with typeface solutions for a broad range of creative applications and consumer devices. The company’s libraries and e-commerce sites are home to many of the most widely used typefaces – including the Helvetica®, Frutiger® and Univers® families – as well as the next generation of type designs. Further information is available at www.monotype.com. Follow Monotype on Twitter,Instagram and LinkedIn.