Rovi Corp. Continues To Renew And The Market Doesn't Believe Them
Alpha Gen Capital
Alpha Gen Capital
Rovi: Multiple Catalysts, 29% Upside Using Conservative Assumptions
KL Investment Partners
KL Investment Partners
Mar. 18, 2015, 3:05 PM
- Today's notable tech gainers include data protection software vendor Imperva (IMPV +3.5%), supercomputer maker SGI (SGI +5.3%), analog/mixed-signal chipmaker MagnaChip (MX +6.1%), enterprise cloud healthcare software vendor Castlight (CSLT +7.6%), program guide/content protection IP provider Rovi (ROVI +5.8%), cloud contact center software vendor Zendesk (ZEN +5%), and Web site owner Demand Media (DMD +4.6%). The Nasdaq is up 0.8% following Janet Yellen's market-pleasing remarks.
- Notable decliners include Chinese EV maker Kandi (KNDI -3.4%), RF backhaul hardware maker DragonWave (DRWI -7.6%), NAND flash controller/4G RF transceiver maker Silicon Motion (SIMO -3.2%), and online money transfer provider Xoom (XOOM -4.9%).
- Castlight is now up 13% from Friday's close. Rovi, rumored to be weighing strategic options, is two days removed from naming a new sales chief and announcing a licensing deal with Sharp. Kandi has now given back the big Monday gains it saw after posting Q4 results.
- Xoom's losses are likely tied to Facebook's launch of a money transfer service for Messenger users; Facebook isn't charging any fees for now.
- Previously covered: Adobe, Wix, Microsemi/Vitesse, Pandora, 500.com, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
Mar. 16, 2015, 7:09 PM
- Dave Longaker, formerly a sales VP at Alcatel-Lucent, has been hired by ROVI to fill the newly-created role of chief revenue officer.
- Longaker will be responsible for "driving Rovi's global revenue across the discovery, monetization and intellectual property product lines." He'll report to COO John Burke.
- Rovi's recent top-line challenges might have driven the move: Q4 sales were down 12% Y/Y (tough comps were partly responsible), and the 2015 revenue growth consensus is at 1.4%.
Feb. 27, 2015, 4:02 PM
Feb. 27, 2015, 12:02 PM
Feb. 25, 2015, 5:26 PM
- ROVI plans to sell $300M worth of convertible senior notes due 2020. Initial purchasers are expected to have a $45M overallotment option.
- $100.1M of the proceeds are expected to be used to repay credit facility borrowings, and $25M will be used on buybacks. The rest will go towards "general corporate purposes."
- The program guide/content protection IP provider had $334M in cash/short-term investments at the end of 2014, and over $1.1B in long-term debt.
- Shares have fallen to $23.40 AH.
Feb. 19, 2015, 4:18 PM
- Rovi (NASDAQ:ROVI): Q4 EPS of $0.44 beats by $0.03.
- Revenue of $134.2M (-11.9% Y/Y) beats by $1.63M.
Feb. 18, 2015, 5:35 PM
Jan. 30, 2015, 5:35 PM
Jan. 8, 2015, 1:35 PM
- Rovi (ROVI +6.2%) is up sharply after providing better-than-feared 2015 guidance ahead of its analyst day, and stating it plans to buy back 5M shares this year. The programming guide/content IP licensing firm is now about $2 away from a 52-week high of $25.34.
- Helping Rovi's cause: Pac Crest has upgraded to Outperform, and set a $31 target.
- Analyst day slides (.pdf)
Jan. 7, 2015, 5:51 PM
- Ahead of its analyst day presentation, ROVI has respectively narrowed its 2014 revenue and EPS guidance ranges to $538M-$542M and $1.69-$1.73 from $530M-$545M and $1.60-$1.75. Consensus is at $539.7M and $1.71. (8-K)
- 2015 guidance is for revenue of $535M-$565M and EPS of $1.55-$1.85; consensus is at $555.3M and $1.87. Rovi plans to buy back 5M shares in 2015; at current levels, that would cost $110M.
- Earlier today, Rovi announced a programming guide deal with U.S. broadband provider Suddenlink (covers digital terminal adapters). The company has been showing off a new UI, natural language search/navigation tools, and its content Knowledge Graph at CES.
Nov. 6, 2014, 4:20 PM
- Rovi (NASDAQ:ROVI): Q3 EPS of $0.42 beats by $0.02.
- Revenue of $128.58M (+4.1% Y/Y) beats by $0.29M.
Nov. 3, 2014, 11:38 AM
- Fanhattan has developed a set-top (called Fan TV) that provides integrated access to live TV, on-demand, and Web video content. The startup has also developed a zero-button (touch-based) remote, a UI with various content search, discovery, and social recommendation tools, and a complementary iOS app.
- Rovi (ROVI +1.2%), which has been trying to grow its sales of software and digital services (including its widely-used programming guides) to pay-TV providers to offset the decline of its legacy analog content protection business, has bought Fanhattan for an undisclosed amount of cash.
- Rovi promises combining its offerings with Fanhattan's will yield "a scalable and modular cloud-based platform supporting IP and hybrid STB boxes, DVR functionality and personalized interactive user-interfaces through reference design hardware and a software development kit." Fanhattan already has deals with Cox and Time Warner Cable.
Jul. 30, 2014, 4:46 PM
- Rovi (NASDAQ:ROVI): Q2 EPS of $0.43 beats by $0.03.
- Revenue of $137.1M (+6.2% Y/Y) beats by $9.25M.
Apr. 30, 2014, 4:11 PM
- Rovi Corporation (ROVI): Q1 EPS of $0.45 beats by $0.02.
- Revenue of $142.5M (+7.3% Y/Y) beats by $9.28M.
Apr. 9, 2014, 4:01 PM
- After falling 12% yesterday on news a federal appeals court had upheld an adverse ruling in the company's IPG-related infringement suit against Amazon, Rovi (ROVI +9.3%) has recovered a big chunk of its losses.
- In an official statement, Rovi notes the ruling only covers two patents, and insists the company's broader portfolio of 5K+ patents is "even more relevant to Amazon today," given the company's efforts to expand its video offerings.
- Rovi "[plans] to continue to pursue Amazon going-forward to take the necessary licenses under [its] patent portfolio."
- Brean (Buy) has called Rovi's Tuesday selloff unwarranted, and thinks the appeals court ruling doesn't have negative implications for either Rovi's licensing efforts against other Web video providers, or for its renewals talks with a major U.S. cable provider.
Apr. 8, 2014, 12:45 PM
Rovi Corp. discovers and personalizes digital entertainment. It provides integrated solutions and advertising and analytics services that connect consumers with entertainment. The company's content discovery solutions include interactive program guides (IPGs), search & recommendations and cloud... More
Industry: Multimedia & Graphics Software
Country: United States