Gemstar Posts Q3

Operating income for Q3 2007 was $5.0M

November 1, 2007

2 Min Read

LOS ANGELES -- Gemstar-TV Guide International, Inc. (NASDAQ:GMST - News) announced that for the quarter ended September 30, 2007, the Company reported revenues of $159.6 million, an increase of 7% versus the prior year’s quarter.

Operating income for the third quarter of 2007 was $5.0 million, compared with operating income of $12.9 million for the third quarter of 2006. The Company’s operating income was impacted by an increase in programming and associated marketing costs at TV Guide Network and a national cross-platform consumer marketing campaign which launched in late September, both as previously planned. These costs were partially offset by a 20% increase in revenues in the Guidance Technology and Solutions segment and further significant decreases in operating expenses at TV Guide magazine.

Net income for the third quarter of 2007 increased to $123.2 million, or $0.29 per share, compared with net income of $17.5 million, or $0.04 per share in the third quarter of 2006. Net income in the quarter benefited from the reversal of approximately $115 million in valuation allowance against the Company’s deferred tax assets. For the third quarter of 2007, the non-cash benefit from reversing the deferred tax assets valuation allowance, on a per share basis, was approximately $0.27 per share.

Gemstar TV Guide’s Chief Executive Officer Rich Battista said, “I am encouraged by the progress we made again this quarter executing on our business initiatives. The quarter was one of investment in key areas, particularly in programming for our TV Guide Network; the further development of My TV Guide, our suite of personalized cross-platform guidance products and services; and the launch of our national cross-platform consumer marketing campaign. I am pleased with the continued expansion of our IPG patent licensing both internationally and to new media platforms. To that end, we recently announced new agreements with MediaFlo in the mobile arena, as well as with Sky Italia, Italy’s leading digital TV service, and with three German consumer electronics companies. I am also pleased with the performance of TV Guide magazine, where ad paging was up 25% and losses were down significantly from Q3 2006. We remain focused on our business objectives while we continue to review strategic alternatives for the company with the goal of maximizing shareholder value.”

Gemstar-TV Guide International Inc. (Nasdaq: GMST)

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