- Gemstar-TV Guide International Inc. (NasdaqNM:GMST - news), a maker of
interactive programming guides, on Wednesday posted a
strong fourth-quarter gain in operating earnings before
charges, fueled largely by the company's July purchase of
TV Guide magazine.
Pasadena, Calif.-based Gemstar reported operating earnings
before stock compensation charges, depreciation and
amortization, of $112.3 million or 25 cents per diluted
share, up from a pro forma result of $90.8 million or 20 cents per share for the same
quarter in 1999.
The year-earlier numbers were adjusted to include results for both Gemstar and TV
Guide, whose merger was completed on July 12, 2000.
The combined company reported a fourth-quarter net loss of $126.2 million or 31
cents per share, compared with a pro forma profit of $23.1 million or 9 cents a share
for the same quarter a year earlier. The net loss reflected a $227.5 million
amortization charge related to the acquisition of TV Guide,
Consolidated revenues for the fourth quarter ended Dec. 31 were $358.1 million,
down about 3 percent from $372.7 for the same quarter a year ago assuming the
merger had been completed at that point. Expenses fell by 13 percent to $245.7
million from $281 million on that pro forma basis.
``I am very pleased with the company's financial performance for the quarter and
fiscal year,'' said Henry Yuen, chairman and chief executive officer of Gemstar. ``We
exceeded our own financial goals and the consensus estimates of the financial
community.''
Yuen said Gemstar saw especially strong growth in its technology and licensing sector
and in its interactive platform sector.
``I think we have conclusively proven that the merger with TV Guide did generate the
synergies we had anticipated, namely, to accelerate the growth of the two core
business sectors that make this company exciting and great,'' Yuen said.
Gemstar-TV Guide, which is 21-percent owned by Rupert Murdoch's News Corp
(NCP.AX), reaches 50 million households through its TV Guide Channel and its
magazines have a circulation of nearly 10 million.
The company also offers a proprietary navigation system for digital television which it
says reaches 10 million households.
PASADENA, Calif. (Reuters) |
