TVG Parent Reports $958.8 Million Second-Quarter Loss
Updated: Thursday, September 26, 2002 5:24 PM
Compiled from wire reports
Posted: Thursday, September 26, 2002 5:24 PM
Gemstar-TV Guide International, the parent company of the TV Games Network, posted a preliminary second-quarter loss of $953.8 million after more than $1 billion in asset write-downs.
Gemstar shares fell 10.4% to $2.90 by the end of trading Thursday. In past 52 weeks, the technology company has fallen from a high of $31 to a low of $2.79.
The company delayed the release of its second quarter results to allow time to account for costs related to its unsuccessful recent patent-infringement lawsuit and record the full reserve to cover receivables from Scientific-Atlanta, one of suit's defendants. The accounting probe, completed this month, led to the reclassification of $2.7 million in advertising revenue from its interactive division to its media services division.
Gemstar also said it didn't file its audited quarterly report because independent auditor KPMG hadnêt signed off on the numbers. The company has requested guidance form the office of the U.S. Securities and Exchange Commission's chief accountant about how to proceed in light of its disagreement with KPMG.
Because Gemstar missed an Aug. 14 filing deadline, the company is now subject to being delisted from the Nasdaq exchange. A delisting hearing was held Thursday.
Gemstar reported for the second quarter a consolidated loss before interest, taxes, depreciation, and amortization of $54.2 million, or 13 cents per share, compared with a profit on the same basis of $108 million, or 26 cents per share, a year earlier.
Including write-downs of more than $1 billion for impaired assets, it posted a net loss of $953.8 million, or $2.32 per share, compared with a loss of $134.8 million, or 33 cents per share, a year earlier. Revenue in the second quarter was $271.7 million, down from $320.5 million a year earlier.
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