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Rovi Corporation (ROVI)

  • Tue, Sep. 15, 2:06 PM
    • Nuance's (NUAN +0.4%) Dragon Drive voice assistant platform will be used to power weather, Web radio, local search, and dictation apps and services in select Mercedes-Benz models starting this month. Additional models will be supported later.
    • Nuance's voice recognition software is already integrated within Mercedes-Benz infotainment systems; the new deal adds cloud-based speech and natural language recognition. Other Dragon Drive clients include Chrysler, Ford, Toyota, and Hyundai.
    • The news comes a day after Nuance announced a partnership with Rovi (ROVI +0.6%) to integrate its Dragon TV voice recognition platform with Rovi's cloud-based Conversation Services, which enable voice-based content searching and discovery.
    | Tue, Sep. 15, 2:06 PM | 1 Comment
  • 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.
    | Tue, Aug. 25, 9:55 AM | Comment!
  • 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
    | Fri, Jul. 31, 3:16 PM | Comment!
  • Thu, Jul. 30, 4:15 PM
    • Rovi (NASDAQ:ROVI): Q2 EPS of $0.38 in-line.
    • Revenue of $127.8M (-6.8% Y/Y) misses by $3.15M.
    • Press Release
    | Thu, Jul. 30, 4:15 PM | Comment!
  • Thu, Jul. 16, 12:46 PM
    | Thu, Jul. 16, 12:46 PM | 1 Comment
  • Thu, Jul. 16, 9:15 AM
    | Thu, Jul. 16, 9:15 AM | Comment!
  • 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
    | Thu, Jul. 16, 9:13 AM | 1 Comment
  • Wed, Jul. 15, 12:12 PM
    • Rovi (ROVI +1.2%) has struck a patent licensing agreement with major South Korean pay-TV provider SK Broadband. Terms are undisclosed.
    • The news comes a day after Rovi announced a licensing deal extension with TV maker Vizio. Shares are up moderately.
    | Wed, Jul. 15, 12:12 PM | Comment!
  • Tue, Jul. 14, 2:11 PM
    • Rovi (ROVI +1.2%) has struck a multi-year patent licensing deal extension. with TV maker Vizio. Terms are undisclosed. (Press Release)
    • The announcement comes ahead of Rovi's July 30 Q2 report.
    • Last week: Rovi names SiriumXM CEO its new chairman
    | Tue, Jul. 14, 2:11 PM | Comment!
  • Wed, Jul. 8, 4:06 PM
    • James E. Meyer, SiriusXM's CEO since 2012, has been named ROVI's chairman. (Press Release)
    • In May, chairman Andrew Ludwick lost his board seat after activist Engaged Capital managed to get two of its nominated directors elected. CEO Tom Carson had been serving as chairman since.
    • Rovi rallied to $16.25 today. YTD, the program guide/content-protection IP provider remains down 28%.
    | Wed, Jul. 8, 4:06 PM | Comment!
  • 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. 29, 3:38 PM | 2 Comments
  • Mon, Jun. 15, 5:40 PM
    | Mon, Jun. 15, 5:40 PM | 2 Comments
  • Wed, May 13, 2:51 PM
    • Two of the directors nominated by Rovi (ROVI +0.2%) activist Engaged Capital - Raghavendra Rau and Glenn Welling - have been elected to the program guide/content-protection IP firm's board at today's annual meeting. A third, David Lockwood, wasn't elected.
    • Notably, one of the Rovi directors being replaced is chairman Andew Ludwick. The other is Jim O'Shaughnessy, a former IP counsel at multiple tech firms.
    • Rovi states CEO Tom Carson will now be chairman under the company's bylaws. The company also tries to put a positive spin on the vote. "We thank our stockholders for their efforts and consideration in re-electing five of our directors ... We also value insights and feedback we have received from our stockholders over the past several weeks. We look forward to welcoming Glenn and Raghu to the Board..."
    • Back in April, Engaged accused 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." In February, Rovi was reported to be interested in hiring a strategic advisor.
    | Wed, May 13, 2:51 PM | Comment!
  • Thu, Apr. 30, 4:16 PM
    • Rovi (NASDAQ:ROVI): Q1 EPS of $0.39 beats by $0.02.
    • Revenue of $134.02M (-6.0% Y/Y) beats by $2.96M.
    • Press Release
    | Thu, Apr. 30, 4:16 PM | Comment!
  • 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
    | Mon, Apr. 20, 10:21 AM | Comment!
  • 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, Apr. 16, 1:35 PM | Comment!
ROVI vs. ETF Alternatives
Company Description
Rovi Corp is engaged in the of discovery, delivery, display and monetization of digital entertainment by providing a broad set of integrated solutions.