Monotype Imaging Reiterates Financial Guidance

Expected financial impact from the acquisition of Bitstream's font business Based on the timing of the close of the acquisition of Bitstream's font business, Monotype Imaging expects the financial impact to be immaterial to the first quarter of 2012 and is reiterating the financial guidance that was provided on Feb. 16, 2012. For the first quarter, the company continues to expect revenue in the range of $32.5 million to $34.0 million, non-GAAP net adjusted EBITDA in the range of $13.5 million to $14.5 million, GAAP earnings per diluted share in the range of $0.15 to $0.17 and non-GAAP earnings per diluted share in the range of $0.21 to $0.23. For the full year 2012, Monotype Imaging expects Bitstream's font business to contribute approximately $13.0 million to $14.0 million in revenue and $2.0 million to $3.0 million in net adjusted EBITDA. The full year 2012 impact from the Bitstream acquisition includes the purchase accounting write-down of deferred revenue, the alignment of Bitstream's revenue recognition policies with Monotype Imaging's policies and integration costs. Total revenue is now expected to be in the range of $146.0 million to $151.0 million, up from prior guidance of $133.0 million to $137.0 million. Net adjusted EBITDA is now expected to be in the range of $59.0 million to $63.0 million, up from prior guidance of $57.0 million to $60.0 million. The acquisition is expected to be neutral to GAAP earnings per diluted share in the range of $0.68 to $0.73, and non-GAAP earnings per diluted share is now expected to be in the range of $0.96 to $1.01, up from prior guidance of $0.93 to $0.98. A reconciliation of GAAP measures to non-GAAP measures for the three months ended March 31, 2012 and the full year 2012 is provided in the financial tables that accompany this release.