Published November 01, 2012
SANTA CLARA, Calif. – Digital TV listings company Rovi Corp. slid to a loss in the third quarter, as revenue fell 7 percent from a year earlier and sales to its consumer electronics customers declined.
The Santa Clara, Calif.-based company's adjusted results trumped Wall Street's expectations, however, sending its shares up more than 17 percent in after-hours trading on Thursday.
Rovi reported a loss of $13.3 million, or 13 cents per share, for the three months ended Sept. 30. That compares with net income of $1.8 million, or 2 cents per share, a year earlier.
Excluding restructuring costs and other special items, Rovi earned 50 cents per share for the latest quarter.
On that basis, the company's results exceeded analysts' consensus forecast for earnings of 38 cents per share, according to FactSet.
Revenue fell to $169.6 million from $181.9 million a year earlier. Analysts had expected $161.4 million in revenue.
Management noted that it cut costs and took other measures during the quarter to reduce operating costs by about $31 million on an annual basis.
Rovi also scratched plans to add $5 million in spending
"This frees up funds to invest in new value-creating strategic initiatives and puts us on the path to achieving an operating margin more appropriate for our business," Rovi President and CEO Tom Carson said in a statement.
Rovi expects fiscal 2012 revenue will range between $660 million and $670 million. It anticipates adjusted earnings per share will be between $1.80 and $1.90.
Analysts have forecast full-year revenue of $661.3 million. They expect adjusted earnings per share for the year will be $1.74.
Rovi shares ended regular trading up 81 cents, or 6 percent, to $14.34. The stock added $2.46 to $16.80 in aftermarket trading.