Gemstar-TV Guide to Reduce Revenues $111M
Monday March 10, 12:19 pm ET
Gemstar-TV Guide to Reduce Revenues $111 Million In Restatement of Past Three Years
PASADENA, Calif. (AP) -- Gemstar-TV Guide International Inc. said Monday it will cut revenue and profit for parts of 2000, 2001 and 2002 after an accounting review by its new auditor.
The Pasadena, Calif., publisher of TV Guide magazine said the restatement will reduce revenue by $110.9 million, and slash income before taxes and some costs by $36.3 million.
Earnings before interest, taxes, depreciation and amortization will be reduced by $45.2 million, the company said.
The restatements will affect the first quarter and fourth quarter of 2000, the fourth quarter of 2001, and the first three quarters of 2002.
Gemstar-TV Guide is the focus of a Securities and Exchange Commission investigation into its accounting practices.
In January, Gemstar-TV Guide said it would restate certain financial results for 2000, 2001 and 2002, resulting in decreased revenue for all affected periods. That restatement followed a previous one made by the company last year after it came under fire for aggressive accounting.
Late last year, Gemstar-TV Guide hired Ernst & Young LLP as its independent accountant after a dispute with auditor KPMG over the restatements.
Shares of Gemstar-TV Guide were at $3.34, down 20 cents, or 5.6 percent, in midday trading on the Nasdaq Stock Market. |
