Digital distribution firm Macrovision (NSDQ: MVSN) has announced Q3 revenue of $76.8 million, up 32 percent from last year’s $58.1 million. Net income in the quarter grew 95 percent to $14.1 million ($.26 per share) from last year’s $7.2 million ($.14 per share). Results were inflated by the closing of certain key deals, which had failed to close in the last quarter, leading to a revenue shortfall. In the coming quarter, the company expects to see revenue of $80-$85 million.

Along with the earnings release, Macrovision said that it’s acquiring All Media Guide Holdings, a provider of information databases and metadata for the entertainment industry, for $82 million. Ann Arbor-based AMG collects and distributes information on a range of media, and has customers that include online and physical retailers and consumer electronics manufacturers. The deal, which is expected to close by the end of the year, will likely add $20 million to revenue and $.05 in EPS for the year 2008.
Earnings Release | Acquisition Release | Webcast

Rafat adds: In the music and media metadata firm, some of the competitors include Muze, which is owned by VC/PE firm Enterprise Partners Venture Capital. AMG itself was owned in part by the PE firm Yucaipa and distribution firm Alliance Entertainment Corp prior to this. Among the competitors, Muze has also bulked up, buying out Loudeye’s U.S. operations last year. It also teamed up with Gracenote to work on solutions together.

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Conference Call: On the call, CEO Alfred J. Amoroso delved into why the company is acquiring AMG and how it will fit into Macrovision’s business. Although AMG’s business historically been the collection and licensing of metadata, it’s increasingly getting into complementary technology. Amoroso: “that’s what we really thought highly of… the ability to unleash the value of the metadata”. The embedding of AMG’s technology into consumer devices is one of the company’s major growth drivers, and it will be found in certain, unspecified next-generation game consoles. A few times, Amoroso mentioned synergies between AMG and the company’s Mediabolic business, which it acquired earlier this year. As for Macrovision, he described it as “becoming a B2B2C company” that helps customers enjoy their content, while allowing publishers to protect it. AMG fits into this, because it allows customers to know and do more with the media they own. To get a sense of AMG’s growth, CFO James Budge said the company will do 2007 revenue of $16 million, growing to the anticipated $20 million next year.

• Earnings: Macrovision Q2 Profits Fall 63.2 Percent; Revs Down Modestly
• AMG Buys Music Software Firm MoodLogic
• Venture Capital Firm Acquires Muze