Seeking Alpha

Rovi Corporation (ROVI)

  • 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
    | 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.
    | Comment!
  • 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."
    | Comment!
  • 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.
    | Comment!
  • 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,, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
  • Fri, Feb. 27, 4:02 PM
    • ROVI spiked higher shortly before the close on a report it's seeking to hire a strategic advisor amid pressure from activists.
    • Shares previously had more moderate gains following the pricing of the company's $300M convertible offering.
    | Comment!
  • Fri, Feb. 27, 12:02 PM
    • ROVI's $300M offering of convertible senior notes due 2020 sports an interest rate of 0.5%, and a conversion price of $28.90 - 22% above current levels.
    • Shares have recovered over half the losses they saw yesterday after Rovi announced the offering on Wednesday afternoon.
    | Comment!
  • 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.
    | Comment!
  • Fri, Jan. 30, 5:35 PM
    • Top gainers, as of 5:15 p.m.: N +9.7%. EDU +4.3%. KEYS +4.2%. STV +3.5%. IDXX +3.1%.
    • Top losers, as of 5:15 p.m.: GNR -5.0%. GSG -3.6%. TCK -3.6%. MBT -3.2%. ROVI -3.1%.
    | Comment!
  • Thu, Jan. 8, 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)
    | Comment!
  • 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.
    | Comment!
  • Apr. 8, 2014, 12:45 PM
    | Comment!
  • Apr. 8, 2014, 11:55 AM
    • Rovi (ROVI -9.9%) had previously sued Amazon (AMZN) for infringing five programming guide (IPG) patents via its IMDB site. A federal court has affirmed a non-infringement ruling.
    • Last year, the ITC ruled against Rovi in an IPG-related infringement suit against Netflix and Roku.
    | Comment!
  • Jan. 8, 2014, 6:09 PM
    • After deciding to sell its Entertainment Store and consumer website businesses last July, ROVI has now decided to unload its DivX video codec licensing business. The company suggests the business, which has been pressured by the growing popularity of various alternative codecs, was good for 2013 revenue of $70M-$75M, and EPS of $0.25-$0.30. (8-K)
    • Rovi now expects 2013 revenue and EPS to be at the high end of the guidance ranges it claims would have been provided in October, had the DivX unit then been treated as a discontinued operation.
    • Not counting DivX, Rovi expects 2014 revenue of $510M-$550M and EPS of $1.55-$1.85; the consensus (includes DivX) is at $619M and $1.98. Rovi's IP licensing business is expected to see revenue of $283M, down from 2013's $293M. Cost of goods sold is expected to fall to $78M from $82.5M, and opex is expected to rise to $220.2M from $218.5M.
    • Rovi also discloses it bought back 4.2M shares in Q4, and paid down $200M in debt.
    • Shares are down AH after rising 2.9% in regular trading, gradually paring the early gains they saw in response to news of several licensing deals.
    | Comment!
  • Jan. 8, 2014, 10:51 AM
    • Rovi (ROVI +8.3%), hit hard last year by legal setbacks and licensing challenges, has announced a multi-year patent license deal with YouTube owner Google that covers Rovi's video discovery technologies. (PR)
    • Rovi has also announced a video discovery IP licensing deal with Samsung that covers mobile devices, a licensing deal with LG related to video metadata (i.e. information about video content) for smart devices, and a multi-year renewal of its DivX video codec licensing deal with Sharp that covers the next-gen HEVC video compression format.
    • Terms for the licensing deals are undisclosed.
    | Comment!
Visit Seeking Alpha's
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.