Tue, Aug. 25, 9:55 AM
- Believing shares can double or even triple from current beaten-down levels, JPMorgan has upgraded ROVI to Overweight, and set a $23 target.
- The firm adds it expects Rovi, stung this year by Netflix-related legal setbacks, to see positive outcomes for contract renewals with AT&T, Dish, and Comcast.
- Shares remain down 54% YTD. They trade for just ~5x a 2016 EPS consensus of $2.07. Over $700M worth of net debt is on the balance sheet.
Fri, Jul. 31, 3:16 PM
- In addition to missing Q2 revenue estimates (while posting in-line EPS), ROVI has guided for 2015 revenue of $500M-$530M and EPS of $1.35-$1.60, below a consensus of $546.6M and $1.70. The low end of the guidance range assumes no new/one-time revenue sources, something Rovi considers "unlikely."
- The company plans to spend $50M on buybacks in Q3. Following today's selloff to new 52-week lows, that $50M should go further. Shares trade for 7.6x the midpoint of Rovi's 2015 EPS guidance range.
- Q2 results, PR
Thu, Jul. 16, 12:46 PM
Thu, Jul. 16, 9:15 AM
Thu, Jul. 16, 9:13 AM
- ROVI states the judge handling its infringement suit against Netflix (NASDAQ:NFLX) granted a Netflix motion for summary judgment, ruling the 5 patents asserted in the case are "invalid on the grounds that they are not directed to patentable subject matter," based on a 2014 Supreme Court ruling that set limits on software patents. (Press Release)
- The judge's claim construction ruling largely went in Rovi's favor, with Rovi's proposed constructions adopted for 8 of the 9 disputed claim terms. Rovi adds the court also "rejected attempts by Netflix to limit the scope of the patents to the area of broadcast television."
- Not surprisingly, Rovi plans to appeal the invalidity ruling. Shares have tumbled to $15.37.
- B. Riley is defending Rovi. "ROVI shares are already pricing in the worst case scenario of that litigation ... We fully expect ROVI to 'appeal” this ruling by bringing additional patents into the litigation against NFLX ... 'Given that the “Big 4' license renewal discussions (Comcast, Time Warner Cable, Dish Network and DirecTV) cover a set of patents with significantly broader reach and use-cases than the original five involved in the NFLX litigation, we continue to believe this ruling is unlikely to have any impact on those discussions."
- Prior Rovi/Netflix coverage
Mon, Jun. 29, 3:38 PM
- A long list of tech companies are posting big declines as the Nasdaq drops 2.2% amid a market rout triggered by expectations of a pending Greek default.
- 6%+ decliners include program guide/content protection IP firm Rovi (ROVI -9.5%), ultracapacitor maker Maxwell (MXWL -8.2%), wireless charging tech developer Energous (WATT -9%), cybersecurity hardware/software provider KEYW Holding (KEYW -8.5%), LED sapphire wafer maker Rubicon (RBCN -10.8%), IP licensing firm WiLAN (WILN -7.1%), security software provider Wave Systems (WAVX -11.6%), online video hosting platform Brightcove (BCOV -7%).
- In a repeat of Friday's trading, many Chinese tech names are also off sharply. The group includes mobile app developer Cheetah Mobile (CMCM -9.7%), e-commerce services firm Baozun (BZUN -8%), online travel agency eLong (LONG -15.3%), and online retailer LightInTheBox (LITB -7.8%).
- See also: LinkedIn, Yandex/Qiwi, solar stocks, Xoom, AppliedMicro
Mon, Jun. 15, 5:40 PM
Mon, Apr. 20, 10:21 AM
- ROVI has inked a multi-year renewal of its program guide licensing deal with U.S. cable provider Charter. As part of the deal, Charter will "also be able to license Rovi's products and services, including Rovi Search, Recommendations and Conversation Services, Rovi Metadata and Rovi Analytics."
- Rovi's beaten-down shares have rallied strongly in response; they closed on Friday less than $1 away from a 52-week low of $17.03. Q1 results arrive on April 30.
- Last week: Rovi activist issues new letter
Thu, Apr. 16, 1:35 PM
- Three weeks after submitting a slate of 3 directors for election at Rovi's (ROVI -2.5%) May 13 annual meeting, Engaged Capital (0.6% stake) has issued a new letter accusing Rovi's board of having "all the hallmarks of a broken and unaccountable governance structure that has incubated poor decision making and led to the continued destruction of shareholder value."
- To back up its argument, Engaged notes the poor performance of Rovi's shares over the last 5 years, and asserts the board and management "have netted approximately $48 million in cumulative compensation" since the 2011 Sonic Solutions merger. It also notes average board tenure is 10 years, and claims directors lack needed video/software industry experience.
- The letter comes a day after Rovi announced its voice recognition/UI software will be integrated with Dish's mobile apps and Hopper Voice Remote. Q1 results are due on April 30.
Thu, Mar. 26, 10:01 AM
- Engaged Capital, owner of a 0.6% stake (modest by activist standards) in ROVI, has submitted a slate of three directors for election at the company's May 13 annual meeting.
- The activist notes the board collectively owns just 0.2% of Rovi's shares, and says it has "sought to work with the Board to improve strategy, cost structure, capital allocation, executive compensation and corporate governance."
- Meanwhile, Rovi has issued a statement regarding yesterday's Netflix suit hearing, which triggered a 12% drop. "No decision was made and we remain confident in our arguments and look forward to the judge’s decision, which is expected sometime in the next couple months."
Wed, Mar. 25, 4:09 PM
- ROVI tumbled over the final hour of trading as a hearing for the company's infringement suit against Netflix took place. Netflix has been seeking a summary judgment of non-infringement.
- Rovi received an unfavorable ITC ruling for an infringement suit against Netflix and Roku back in 2013, and saw a non-infringement ruling for a suit against Amazon upheld last year. Rovi has accused all three firms of infringing its program guide patents.
- Shares are down 16% over the last two days.
Tue, Mar. 24, 3:18 PM
- Today's notable tech gainers include chip packaging/testing firm ChipMOS (IMOS +3.7%), and headphone maker Skullcandy (SKUL +3.9%), mobile banking tech provider Mitek (MITK +6.5%), search toolbar/mobile ad platform provider Perion (PERI +8.8%), Chinese social network/game provider Renren (RENN +4.8%), peripherals giant Logitech (LOGI +4%), security IP licensing firm Finjan (FNJN +13.7%).
- Notable decliners include e-commerce services firm ChannelAdvisor (ECOM -5.6%), program guide/content protection IP firm Rovi (ROVI -4.3%), telecom equipment vendor Calix (CALX -3.5%), and Fibre Channel/Ehternet switch vendor Brocade (BRCD -3.4%).
- Likely helping Finjan: An H.C. Wainwright note stating the company has committed $5M to a Jerusalem Venture Partners (JVP) cybersecurity fund; Alibaba announced yesterday it's investing in JVP. Logitech announced a $100 wireless mouse today. Skullcandy is once more within striking distance of a 52-week high of $11.83.
- Previously covered: Twitter, solar stocks, Sonus/AudioCodes/BroadSoft, Neonode, Arista, Taser, Ciena, Zagg, Gogo, Digital Ally
Wed, Mar. 18, 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
Fri, Feb. 27, 4:02 PM
Fri, Feb. 27, 12:02 PM
Wed, Feb. 25, 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.
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