Rentrak Reports Fiscal 2009 First Quarter Financial Results

Live Global Trials of Company's Digital Download Essentials Service Initiated
with Multiple Studios

PORTLAND, Ore., Aug. 5 /PRNewswire-FirstCall/ -- Rentrak Corp.
(Nasdaq: RENT) today announced financial results for its fiscal first quarter
ended June 30, 2008.
Consolidated revenues grew almost 5 percent to $25.4 million in the first
quarter of fiscal 2009 from $24.2 million in the year-ago period.
-- Revenues in the company's Advanced Media Information (AMI) segment
increased more than 29 percent to $3.0 million from $2.4 million in the
first quarter of fiscal 2008 and rose more than 7 percent from $2.8
million in the preceding fourth quarter of fiscal 2008. The increases
primarily reflect incremental revenues generated from new and existing
customers of the company's Essentials Suite(TM) of media measurement
services. The AMI segment represented approximately 12 percent of
consolidated revenues and contributed approximately 29 percent of
consolidated gross margin dollars in the first quarter of fiscal 2009.

-- Revenues in the company's Pay-Per-Transaction(R) (PPT) segment grew
nearly 2 percent to $22.3 million from $21.9 million in last year's
comparable quarter and increased more than 14 percent from $19.5
million in the fourth quarter of fiscal 2008. The increases primarily
reflect higher volumes of units shipped during the quarter.

Selling and administrative expenses were $6.9 million, or 27 percent of
revenues, in the first quarter of fiscal 2009, compared with $6.4 million, or
27 percent of revenues, during last year's fiscal first quarter. Operating
income was $1.7 million in the first quarter of fiscal 2009, versus $1.8
million in the same period last year.
Net income totaled $1.0 million, or $0.09 per diluted share in the first
quarter of fiscal 2009, compared with $1.2 million, or $0.11 per diluted
share, in last year's comparable period.
Rentrak had cash, cash equivalents and marketable securities of $35.7
million at June 30, 2008, versus $31.8 million at March 31, 2008. The company
generated $4.4 million in cash from operating activities in the first quarter
of fiscal 2009, compared with cash used in operating activities of $1.2
million in the first quarter of fiscal 2008.
"Our positive first quarter results were driven by continued expansion in
our AMI division, as well as strong performance in our PPT business," said
Rentrak Chairman and Chief Executive Officer Paul Rosenbaum. "In a
challenging economy, our legacy PPT business is performing extremely well, as
consumers seek inexpensive forms of entertainment. The current environment
has made home entertainment a much more viable and dynamic market than a year
ago, and we are hopeful that this trend will continue throughout the remainder
of the year."
Recent Operating Highlights

-- Began live global trials with multiple studios for Rentrak's Digital
Download Essentials, a service that collects, processes, audits and
reports on movie and television content rented or purchased by
consumers and downloaded over a broadband connection;
-- Cox Communications, the third largest cable television company in the
U.S., Hargray Communications, a long standing telecommunications
company, and Knology, a leading provider of interactive communications
and entertainment services in the Southeast, joined Rentrak's
distinguished list of 28 multiple system operators;
-- Added Kristie Fortner as Vice President of Syndication and Gordon Jones
as Director of Business Development to support strategic growth of
Rentrak's AMI division;
-- Remain on-target with first calendar quarter 2009 commercial launch of
linear TV measurement solution, TV Essentials(TM);
-- PPT business performed well in a challenging economy;
-- AMI division continued substantial growth trend.

"There are many high-growth opportunities before us," Rosenbaum said. "Our
strong balance sheet and our continued ability to generate healthy cash flow
will allow us to take advantage of these opportunities. The entire Rentrak
team is fully committed to capitalizing on our well-earned legacy of industry
and technology expertise to pioneer the future of multi-screen media
measurement."
Conference Call
Rentrak has scheduled a conference call for 2:00 p.m. (PDT)August 5, 2008
to discuss the company's first quarter financial performance. Shareowners,
members of the media and other interested parties may participate in the call
by dialing 866-831-6291 from the U.S. or Canada, or 617-213-8860 from
international locations, passcode 81410390. This call is being webcast and
can be accessed at Rentrak's web site at http://www.rentrak.com where it will
be archived through August 5, 2009. An audio replay of the conference call is
available through midnight August 12 by dialing 888-286-8010 from the U.S. or
Canada, or 617-801-6888 from international locations, passcode 58816135.
About Rentrak Corporation
Rentrak Corporation, based in Portland, Oregon, is an information
management company serving clients in the media, entertainment, retail and
advertising industries. The company's Entertainment Essentials(R) suite of
services is redefining media measurement in the digital broadband era.
Entertainment Essentials provides customers with near-real- time, actionable
insight into performance of content distributed over a wide variety of modern
media technologies. Available by license or subscription, each Entertainment
Essentials application allows executives to analyze detailed industry-wide and
title-specific data to make decisions that enhance the bottom line and provide
competitive advantage. For further information, please visit Rentrak's
corporate Web site at http://www.rentrak.com.
Safe Harbor Statement
When used in this discussion, the words "anticipates," "expects,"
"intends" and similar expressions are intended to identify forward-looking
statements. Such statements relate to, among other things, the revenues and
results of operations for the company's PPT(R) and information services
segments, the company's development efforts pertaining to new media
measurement services and the timing of the commercial launch of those
services; and anticipated customer acceptance of the company's new media
measurement services; and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Factors
that could affect Rentrak's financial results include customer demand for
movies in various media formats subject to company guarantees, the company's
ability to attract new revenue-sharing customers and retain existing
customers, the company's success in maintaining its relationships with studios
and other product suppliers, the company's ability to successfully develop and
market new services to create new revenue streams, and Rentrak's customers
continuing to comply with the terms of their agreements. Additional factors
that could affect Rentrak's financial results are described in Rentrak's March
31, 2008 annual report on Form 10-K and subsequent quarterly reports filed
with the Securities and Exchange Commission. Results of operations in any
past period should not be considered indicative of the results to be expected
for future periods.
CONTACT:
Investors
PondelWilkinson Inc.
Laurie Berman
310-279-5962
lberman@pondel.com

(Financial Tables Follow)

Rentrak Corporation and Subsidiaries
Condensed Consolidated Income
Statements
(Unaudited)
(In thousands, except per share amounts)

For the Three Months Ended June 30,
2008 2007

Revenue $25,353 $24,238
Cost of sales 16,812 15,964
Gross margin 8,541 8,274

Selling and administrative expense 6,860 6,439
Income from operations 1,681 1,835

Other income (expense):
Interest income 170 407
Interest expense (2) (2)
168 405

Income before income taxes 1,849 2,240
Provision for income taxes 813 992
Net income $1,036 $1,248

Basic net income per share $0.10 $0.12

Diluted net income per share $0.09 $0.11

Shares used in per share calculations:
Basic 10,448 10,726
Diluted 10,983 11,333

Rentrak Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)

June 30, March 31,
2008 2008

Assets
Current Assets:
Cash and cash equivalents $35,748 $26,862
Marketable securities - 4,986
Accounts receivable, net of
allowances for doubtful
accounts of $585 and $572 16,850 15,032
Note receivable 396 396
Advances to program suppliers,
net of program supplier reserves
of $24 and $17 132 95
Taxes receivable and prepaid taxes 616 1,455
Deferred income tax assets 253 253
Other current assets 1,169 1,296
Total Current Assets 55,164 50,375

Property and equipment, net of
accumulated depreciation of
$8,115 and $7,731 6,134 6,145
Other assets 606 629
Total Assets $61,904 $57,149

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $9,955 $6,768
Accrued liabilities 408 671
Deferred rent, current portion 90 90
Accrued compensation 901 930
Deferred revenue 1,788 873
Total Current Liabilities 13,142 9,332

Deferred rent, long-term portion 974 989
Deferred income tax liabilities 200 226
Taxes payable, long-term 1,980 1,965
Notes payable 748 965
Total Liabilities 17,044 13,477

Commitments and Contingencies - -

Stockholders' Equity:
Preferred stock, $0.001 par value;
10,000 shares authorized; none issued - -
Common stock, $0.001 par value;
30,000 shares authorized; shares
issued and outstanding:
10,611 and 10,605 11 11
Capital in excess of par value 47,323 47,189
Accumulated other comprehensive income 188 170
Accumulated deficit (2,662) (3,698)
Total Stockholders' Equity 44,860 43,672
Total Liabilities and
Stockholders' Equity $61,904 $57,149

SOURCE Rentrak Corporation

Investors, Laurie Berman of PondelWilkinson Inc., +1-310-279-5962,
lberman@pondel.com, for Rentrak Corporation