Another nice piece on GMST:
From the Robertson Stephens internet report:
GEMSTAR: AN EMERGING NEW-MEDIA POWERHOUSE
Gemstar reported fiscal fourth-quarter revenue of $84 million,
significantly above our estimate of $73 million. EPS of $0.17 was
also well above our estimate of $0.13, excluding a $15.9-million
nonrecurring charge related to the eBook acquisitions. We believe
business momentum is continuing strong, reflected in strong
worldwide licensing revenue for Gemstar's Electronic Program
Guide. We remain confident that the TV Guide (TVGIA $29-3/4)
merger will close, most likely in late June or early July. Once
the merger is closed, we see the potential for a positive
business update and renewed optimism regarding all aspects of the
combined company's business. We also believe momentum is building
on the advertising front as Gemstar has quietly rounded out its
initial list of advertisers, including AOL, NBC, CBS, ABC, ESPN
and others. We continue to believe the advertising business can
take off when the company gets its installed base of EPGs up to
five million, which could happen shortly after the merger closes.
To us, Gemstar shares represent one of the best risk/reward
profiles in the new-media sector. We believe we are close to an
inflection point in the business and the stock, as Gemstar
becomes one of the largest interactive advertising platforms and
spearheads the interactive TV market. |
