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. 30, 4:15 PM
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
Wed, Jul. 15, 12:12 PM
Tue, Jul. 14, 2:11 PM
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%.
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
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.
Thu, Apr. 30, 4:16 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."
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