GMST--EARNINGS
Monday August 14, 4:53 pm Eastern Time
Press Release
Gemstar-TV Guide International, Inc. -Nasdaq:GMST- Reports Financial Results of Gemstar International Group Limited for the Quarter Ended June 30, 2000
PASADENA, Calif.--(BUSINESS WIRE)--Aug. 14, 2000--Gemstar-TV Guide International, Inc. (Nasdaq:GMST - news; ``Gemstar-TV Guide'') reported the results of operations of Gemstar International Group Limited (``Gemstar'') for the quarter ended June 30, 2000. On July 12, 2000, Gemstar merged with TV Guide, Inc. to form Gemstar-TV Guide International, Inc. Reported here are Gemstar's financial results prior to merger.
Revenues for the quarter ended June 30, 2000 were $63.2 million. Operating income was $35.0 million. Net income was $28.9 million. Diluted earnings per share were $0.12 based on 250.1 million shares.
For the same quarter last year, the Company showed revenues of $45.1 million, operating income of $19.0 million, net income of $14.4 million and diluted earnings per share of $0.06 based on 242.6 million shares. Compared to these results, the first quarter ended June 30, 2000, reflects an increase of 40% in revenues, 85% increase in operating income, 100% increase in net income and 100% increase in diluted earnings per share, despite an increase of 3% in fully-diluted share count.
The increase in revenues is primarily due to the continued growth in worldwide licensing income derived from the Company's proprietary technologies and intellectual property.
On July 12, 2000, the Company completed its merger with TV Guide, Inc. in a stock-for-stock purchase transaction. After the transaction, the Company changed its name to Gemstar-TV Guide International, Inc. (``Gemstar-TV Guide''), but continues to trade under the symbol NASDAQ:GMST.
``We are very proud of Gemstar's strong financial performance last quarter,'' said Henry C. Yuen, chairman and chief executive officer of Gemstar International Group, Limited, and now chairman and chief executive officer of Gemstar-TV Guide International, Inc. ``But we are even more excited by the prospects of Gemstar-TV Guide going forward. Our combined assets in the form of technology, intellectual property, content, distribution and strategic relations will place us in a central position to compete for becoming the worldwide entertainment portal of the new millennium.''
About Gemstar - TV Guide
Gemstar-TV Guide International, Inc., (Nasdaq:GMST - news) is a leading global technology and media company focused on consumer entertainment. The Company has four major business sectors: the Technology and Licensing Sector, which is responsible for the development, licensing and protection of intellectual property and technology; the Company's technology includes the VCR Plus+® system, the interactive program guide (``IPG'') marketed under the GUIDE Plus+® and TV Guide® Interactive brands and the electronic book (``eBook''); the Interactive Platform Sector, which owns, operates and derives recurring income from advertising, interactive services, content sales and e-commerce on the Company's proprietary IPG and eBook platforms; and the Media and Services Sector, which operates the TV Guide® magazines, TV Guide® Channel, and other television media properties, as well as a media sales group that services all of the Company's media platforms; and the Investments & Holdings Sector, which operates a variety of businesses including the startup Television Games Network.
The IPG is built into televisions, VCRs or set top boxes (cable, satellite, telco, Internet) and presents a multi-day television program guide on the television screen from which the consumer can view, select, tune to or record programs. The eBook is a reading device which can store tens of thousand of pages, and permits a user to take instant delivery of any book, magazine or newspaper they purchase over the telephone.
The Company's media properties reach over 100 million U.S. homes on a weekly basis. The Company's products and services are available in over 50 countries worldwide.
The Company's services, technology and intellectual property are licensed to major technology, media and communication companies in the consumer electronics, internet, personal computer, satellite, cable television and telco industries. Licensees and customers include AOL, AT&T, Cablevision, Charter, Comcast, Cox, DirecTV, Dish Network, Matsushita, Microsoft, Philips, Sony, Time Warner, Thomson multimedia, Zenith and others. The Company has over 140 issued U.S. patents in the general area of audio-visual technologies with more than 3000 claims, over 150 issued foreign patents, and continues to actively pursue a worldwide intellectual property program and currently has over 300 U.S. patent and over 600 foreign patent applications pending.
Except for historical information contained here, the matters discussed in this news release contain forward-looking statements which involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, the management of growth, and the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended March 31, 2000. The financial results of TV Guide, Inc. for the quarter ended June 30, 2000 is separately reported in its Form 10-Q.
EDITORS: GUIDE Plus+, VCR Plus+, PlusCode, Gemstar eBook, and TV Guide are trademarks of Gemstar-TV Guide. Other product names used herein are for identification purposes only and may be trademarks of their respective companies.
GEMSTAR INTERNATIONAL GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
Three months ended
June 30,
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2000 1999
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Revenues $63,230 $45,088
Operating costs and expenses:
Selling and marketing 14,611 12,989
Research and development 6,068 5,651
General and administrative 7,541 7,493
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Operating income 35,010 18,955
Other income, net 4,633 2,745
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Income before income taxes 39,643 21,700
Income taxes 10,704 7,260
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Net income $28,939 $14,440
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Basic earnings per share $0.14 $0.07
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Diluted earnings per share $0.12 $0.06
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Weighted average shares outstanding 208,399 203,156
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Weighted average shares outstanding,
assuming dilution 250,126 242,588
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Note: All historical financial information has been restated to
include NuvoMedia Inc. and SoftBook Press Inc.
SUMMARY BALANCE SHEET DATA
(unaudited)
(In thousands)
June 30, March 31,
2000 2000
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Cash and cash equivalents $237,949 $237,046
Marketable securities 139,148 112,868
Total assets 523,705 467,171
Total liabilities 87,334 81,514
Net shareholders' equity 436,371 385,657 |
