Like its name, Monotype Imaging Holdings
Having launched in the mid-1980s, Monotype was an early player in the desktop-publishing business. Through internal development and key acquisitions, it now owns a library of more than 9,000 typefaces. There are also key Web properties, such as fonts.com and linotype.com, which attracted 20 million visits last year.
Monotype's business model relies primarily on multiyear licensing agreements with original equipment manufacturers, such as Microsoft
It should also be no surprise that a big part of Monotype's business comes from the laser printer market. According to the company, its fonts were embedded in more than 50% of laser-printer shipments last year.
It all translates into some nice financials. In 2006, Monotype increased its revenues 17% to $86.2 million, and net income was $7 million.
And with the surge in multimedia platforms such as Apple's iPhone and Google's YouTube, Monotype could see some nice growth ahead. It's already been aggressively developing new technologies for mobile devices.
While there is competition from Adobe
Monotype reminds me of Motley Fool Stock Advisor Dolby
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Microsoft is a Motley Fool Inside Value pick.
Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 2,419 out of more than 60,000 participants in Motley Fool CAPS.