- ROVI has reached deals to sell its struggling Entertainment Store (private-label digital content sales) and Consumer Website businesses. The former has been on the block since January.
- Rovi now expects 2013 revenue of $600M-$630M and EPS of $1.80-$2.10, below a prior forecast of $630M-$660M, and largely below consensus of $645.4M and $2.09.
- The Consumer Website sale has a $7M-$9M impact on revenue guidance. For the rest, Rovi blames "uncertainties with respect to the timing of closing several new [licensing] agreements" with international and over-the-top (i.e. Internet video) companies. Rovi remains mired in a legal battle with Netflix and Roku.
- Revenue -5% Y/Y in Q2. Service provider revenue +10% to $83.7M, but consumer electronics businesses -27% $47.3M.
- $65M was spent on buybacks in Q2.
- Q2 results, PR
Rovi -4.4% AH due to revenue miss, guidance; company selling 2 businesses
Jul 31 2013, 18:00 ET