Monotype Imaging Holdings Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported revenue was $65,016,000 against $52,637,000 a year ago. Income from operations was $5,491,000 against $1,256,000 a year ago. Income before income taxes was $4,870,000 against $1,092,000 a year ago. Net income was $11,870,000 against $450,000 a year ago. Net income available to common shareholders - diluted was $11,306,000 against $450,000 a year ago. Net income per common share - diluted was $0.28 against $0.01 a year ago. Net adjusted EBITDA was $14,961,000 against $10,623,000 a year ago. Non-GAAP earnings per diluted share were $0.45 against $0.12 a year ago. The company generated $12.1 million of cash from operations in the fourth quarter of 2017.

For the full year, the company reported revenue was $235,789,000 against $203,441,000 a year ago. Income from operations was $13,704,000 against $26,391,000 a year ago. Income before income taxes was $6,169,000 against $25,199,000 a year ago. Net income was $11,560,000 against $14,886,000 a year ago. Net income available to common shareholders - diluted was $10,615,000 against $14,394,000 a year ago. Net income per common share - diluted was $0.27 against $0.36 a year ago. Net adjusted EBITDA was $51,960,000 against $59,810,000 a year ago. Non-GAAP earnings per diluted share were $0.89 against $0.85 a year ago. The company generated $32.9 million of cash from operations for the full year 2017.

For the first quarter 2018, the company expects GAAP net loss to be $1,200,000 to profit of $700,000. Non-GAAP net income expected to be $4,150,000 to $6,050,000. For the first quarter of 2018, the company expects revenue of $53 million to $57 million, gross profit margins between 80% and 82%. The company anticipates non-GAAP net adjusted EBITDA to be between $9 million and $12 million, non-GAAP diluted EPS to be between $0.10 and $0.15 and GAAP diluted EPS to be between negative $0.03 and positive $0.02.

For the year 2018, the company expects GAAP net income to be $10,200,000 to $14,600,000. Non-GAAP net income expected to be $30,800,000 to $35,200,000. During its last earnings call, the company provided a high-level framework for expected revenue growth and profitability in 2018, including ranges of growth percentages and non-GAAP net adjusted EBITDA margins. When applied to full year guidance at the time, these would have calculated out to about $242 million to $252 million of revenue and non-GAAP adjusted EBITDA of about $55 million to $65 million. Based on the company's momentum coming out of 2017 and its visibility into incremental operational efficiencies, the company is able to raise its earnings expectations to $59.5 million to $66.5 million of non-GAAP net adjusted EBITDA and tighten the revenue range to $243 million to $251 million. When comparing 2018 revenue guidance to 2017 results, it's worth remembering the 2 headwinds generated by the $9.2 million of 2017 onetime printer revenues and the anticipated onetime revenue impact from the adoption of the new accounting rules. After normalizing for both of these events, the company would expect revenue growth to be in the low double digits. The company expects 2018 gross profit margins between 80% and 82%. The company anticipates non-GAAP diluted EPS to be between $0.76 and $0.87 and GAAP diluted EPS to be between $0.25 and $0.36. Finally, after considering the impact of the new corporate tax reform, the company estimates its 2018 effective tax rate will be approximately 38%.